Moroccan Retailers Seek Relief from High Rents Amid Economic Crises

The main members of the Moroccan Association of Rental Real Estate - AMIL (Aksal, Aradei Capital, Foncière Chellah, Immorente, Marjane Holding, KITEA, Soft Group, Soprima, Yamed...) held a session with the main representatives of the Moroccan Federation of Network Trade (FMCR), relays Challenge.

On the agenda of these exchanges, deemed constructive by both parties, are the financial and cash flow difficulties faced by merchants who continue to suffer the adverse effects of the Covid-19 crisis and the Ukrainian crisis, but also the continuous increase in customs duties on products imported from Asia as well as numerous customs and tax controls.

Thus, the FMCR wished that a common solution be found to the problem of rent arrears owed by certain merchants who can no longer cope with their rental charges which represent more than 10% of their income.

To relieve these merchants, the FMCR proposed to the AMIL the implementation of rental contracts with a partially variable rent, the amount of which will be calculated on the basis of the tenant’s gross operating surplus. This, in order to share with the real estate developers the risks related to the operation of shopping centers and tenants.