During March 2020, the Government of Hungary made a number of provisions to control the corona virus epidemic as well as to protect the health of the population. These measures - including the regulations on limited opening of shops and various curfew regulations which are still in force - had a significant impact on the functioning of retail markets.
Ceetrus Hungary Kft., currently operating 650 rental venues in 18 Auchan shopping centers across the country, has entered into an immediate discussion with its tenants to find a quick and reassuring solution to the situation.
In order to reduce the financial loss of tenants due to the loss of turnover, Ceetrus Hungary Kft. has made the following decisions:
- Ceetrus Hungary does not oblige its tenants to remain open at all costs, despite the significantly reduced revenues
- does not impose penalties on tenants who have decided to close temporarily
- has cut monthly rent by 50% for shops/businesses forced to close temporarily
- in order to support businesses and to increase their turnover, Ceetrus Hungary provides free advertising opportunities for its tenants on its online and offline platforms
Ceetrus considers it of utmost importance that tenants are not let down during this difficult, challenging time, since survival – to resume trade once the restrictions are lifted – is in the common interest. Through these decisions, Ceetrus is showing solidarity towards its 340 retail partners and contributes to mitigating the negative effects of the economic and financial crisis that is emerging at national level in the wake of the epidemic - said Balázs Gábosy, Director of Operations at Ceetrus Hungary Kft.
Ceetrus is already working on the solutions needed to best support its retail partners for a return to business at the end of the lockdown period. In addition, Ceetrus also initiates in-company conversations and a kind of “co-thinking” to discuss the impact of the pandemic on customer habits and the future of retail business.
Ceetrus is a global property player based in Europe, founded in 1976. The company was known as Immochan until June 2018. The company’s new name is constructed from the following words: “SEE” (see) “CITIES), “TRUST” (trust), “US” (we). Ceetrus has nearly 1,000 employees across 10 countries, 279 commercial sites including 76 “Aushopping” sites; 1 billion visits/year; a year; 10,700 retail partners; 130 social entrepreneurs supported by the Ceetrus Foundation; over 1,600 housing units acquired or built, 117,000 m² of offices acquired or built; 30,000 m² of leisure activities over the past 2 years. It aims to create responsible, sustainable, vibrant community spaces that contribute to the development of local communities and make people’s everyday lives more comfortable. In addition to its residential and multifunctional projects, Ceetrus Hungary Kft., the Hungarian subsidiary of Ceetrus is primarily involved in the management of Auchan Korzó.