Cape Town - Property landlords have joined a call on the City of Cape Town to freeze rates and provide tax relief. They said this would help their tenants survive the 21-day lockdown and its aftermath.
In an open letter commercial property owners who are struggling through the recession, said they would not be able to pay dividends or buy real estate this year, but their main concern was managing debt and paying staff. The owners, who collectively own R20 billion worth of real estate in Cape Town, sent letters to the City pleading for a rates freeze.
The letter was sent by Western Cape property group Spear Reit and its chief executive, Quintin Rossi.
“We cannot ignore this, if we cannot provide relief to our residents, especially in the face of a health crisis that will damage our economy,” Rossi said.
“Essentially if we cannot get meaningful relief we cannot pass any meaningful relief on to our tenants, who predominantly operate small to medium-sized businesses.The bottom line is that if we landlords give in to every request or not receive any rental in, and are still expected to pay rates, our own businesses are faced with the reality that we might not survive.”
Mayco member for Finance, Ian Neilson, said: “The City is looking at all options for assistance that are legal, tailor-made and will not lead to the municipality running out of money and hence stopping essential service delivery such as refuse collection, water and sanitation, health services, electricity services. It cannot afford a blanket relief programme and each case will have to be investigated.
“Rates and Service charges comprise an amount equal to 72% of the City’s income per month. Take this away, for a short while and even some months, and the City ceases to exist.”
@MarvinCharles17