27.03.2020 Business law

New government proposal – suspension of lease agreements in shopping centres

According to the government’s amendment, the lease agreements in shopping centres would be completely suspended.

However, the condition for the suspension is that tenants submit unconditional offers to extend the lease by the duration of the epidemic plus 6 months. The offer should be submitted no later than 3 months after the epidemic ends. If a tenant does not submit such an offer, the landlord has the right to demand rent and other charges for the duration of the epidemic, as the lease agreement will not be considered as being suspended.

Learn more: The anti-crisis shield will support commercial tenants

This means that tenants affected by a coronavirus outbreak will be fully relieved of their obligations to the shopping centre. This proposal goes even further than originally presented. It fully transfers the effects of the pandemic to the owners of the shopping centres and constitutes an unprecedented interference of the Government in the sphere of civil law relations.

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