Tag: coronavirus

Merlin & Colonial Will Lose More than 11% of their Rental Income, According to Barclays

The British bank estimates that the two Socimis will experience a decrease in gross rental income of between 11% and 15% this year.

Barclays forecasts a difficult immediate future for the large property owners in Europe due to the crisis caused by the Covid-19 coronavirus. The bank has carried out a study of the large listed real estate companies on the continent and predicts a significant impact on rental income in segments such as hotels, student residences and retailers, as well as in offices. In its analysis, the financial institution has reduced its income forecast for the two large Spanish Socimis: Merlin and Colonial.

“We believe Merlin will be impacted by Covid-19, especially in the retail sector,” said Barclays. The financial institution points out that Merlin has already communicated to the market that its rental income will fall by a small proportion, as a result of rent renegotiations with the tenants of commercial premises that are closed and cannot afford to pay. For this reason, the bank’s report reflects a decrease in gross rental income this year of 15% as a result of the effects of the coronavirus crisis, although it expects rents to recover by 10% in 2021.

Quabit Extends its Payment Protection Insurance to those Affected by Coronavirus

The real estate company’s payment protection insurance will not apply to exclusions from the pandemic.

In this sense, the insurance will cover the payments due by customers who are self-employed or who work as civil servants and have temporary disabilities caused by Coronavirus. This will apply to several of Quabit’s developments once the disability exceeds 30 consecutive days.

Quabit will also do the same with permanent employees affected by an ERE or ERTE caused by the Covid-19 situation when it affects 50% or more of their remuneration.

Real Estate Companies Reset their Strategies for the Post-Coronavirus World

Real estate companies are preparing to escape the doldrums generated by the coronavirus with both defensive and commercial business strategies.

Real estate companies are preparing to overcome the slump caused by the Covid-19 coronavirus pandemic as soon as possible with both defensive and commercial business strategies. They intend to reorient themselves towards changes in consumption and to lower forecast purchasing power.

Several executives have explained the way in which their companies are facing this post-pandemic challenge. A few days ago, Juan Fernández-Aceytuno, CEO of the appraisal company Sociedad de Tasación, revealed that his company has chosen to reduce wages and cut expenses rather than implement temporary redundancies (an ERTE or ‘temporary employment regulation file’ in Spanish).