Real estate fund Atrium is struggling with stricter rules in Poland and Russia to curb the spread of the new corona virus, which means that shops must keep their doors closed. In Poland, Atrium is obliged to cut rents, while in Russia the store closings will take longer.
The Polish government has adopted legislation that allows companies to temporarily impose lower rents on retail units in commercial buildings with a sales area of over 2,000 square meters. Companies that make use of the scheme are obliged to extend lease contracts for the same period as the store closings plus an additional six months.
In Russia, unnecessary shops must keep their doors closed until April 5. That is a week longer than previously reported. According to Atrium, there is a good chance that this arrangement will last longer.
Atrium previously announced that it was postponing unnecessary investments due to the corona crisis and looking into ways to save costs. In the Czech Republic and Slovakia, too, Atrium has government-imposed trade restrictions.
Since the onset of the crisis in February, Atrium says it has been working closely with tenants, staff and local health authorities to implement a number of preventative measures to contain the virus and minimize the impact on our consumers. The impact of the crisis on the financial results is still uncertain.