Makkah Construction grants tenants rental waivers for 6 months

Makkah Construction and Development Co.'s board of directors approved, on Oct. 7, to grant shop tenants rental waivers for six months in the fiscal year 2019/2020.

The move is aimed at easing pressures on the tenants of shops at the commercial center, Makkah said in a bourse statement on Thursday.

The rental waiver will have a financial impact on the company, and the related updates will be announced in due course, Makkah added.

The decision came in light of the direct and significant impact on shop revenues at the commercial center. The tenants were unable to fulfill their obligations to the company, due to the precautionary measures adopted by the Kingdom to curb the coronavirus outbreak, the statement concluded.

In April, Makkah Construction expected its revenues and profits for the fiscal year 2020 to be impacted, as the temporary suspension of Umrah, domestic and international flights, as well as closure of malls, have led to a decline in occupancy rates in hotels, Argaam reported.