Lira-based rent system for malls on agenda again
President Recep Tayyip Erdoğan's call to shopping mall owners to use Turkish lira instead of foreign currencies as their accepted means of payment for rent has moved the currency issue on to the national agenda once again.
The recent surge in the exchange rate for the U.S. dollar has forced many retail shop owners to close their stores after missing on rents at shopping malls that require payments to be made in foreign currencies.
The retailers have welcomed President Erdoğan's call to use lira as the currency for paying rents at shopping malls instead of foreign currencies.
Sinan Öncel, president of the United Brands Association (BMD), said the organized retail sector was pleased with President Erdoğan's statement. Pointing out that the president is addressing a vital issue in terms of Turkish brands, on the agenda of the country, Öncel said he was confident that the calls directed to the shopping mall managers would be answered. Noting that earning money in lira also means borrowing and spending in lira, Öncel said the Turkish brands expect a conversion into lira with a payable rate in shopping malls as well as street stores, stressing that they fully back President Erdoğan's calls for the transition from a foreign exchange-based economy to a lira-based economy.
Alp Onder Özpamukçu, the chairman of the Chain Stores Association (KMD), said they watched with regret different brands close their stores in shopping malls and streets, adding that people have closed stores where they could not attain a certain profitability and their biggest concern is the increase in the number of closed stores, which is something that is not welcome by the mall investors.
Özpamukçu suggested that shopping malls, which do not have a foreign currency debt and have completed the payment of the investment credits, should return to a lira-based rental system with a reasonable exchange rate after evaluating their investments. Özpamukçu also said other shopping malls should also fix the exchange rate.
Hasan Firat, chairman of the Grand Bazaar Traders' Association, stated that the shop rentals in the Grand Bazaar have been paid both in lira as well as in dollars up to now and that the shop owners are now focusing on the dollar and lowering the rents. Pointing out the shops that have been closed for the past four months after the tenants had difficulties paying rents in dollars and their contracts expired, Fırat said more than 100 shops in the Grand Bazaar are now closed due to rent-related problems and that the number is increasing every day. He also highlighted that if the dollar-based system continues, then there will be even more shops that would not be able to renew their contracts and will have to close eventually.
Armada, Panora malls to convert lease contracts to TLArmada and Panora Shopping Centers have decided to convert their foreign exchange-based lease agreements to Turkish lira in a show of support for President Erdoğan's call to use the local currency.
Rıfat Hisarcıklıoğlu, the President of Union of Chambers and Commodity Exchanges of Turkey (TOBB) and Söğütözü İnşaat, Chairman and partner at the Panora and Armada Shopping Centers, said they did not want to remain indifferent to President Erdoğan's call to change shopping center's foreign currency-based rents to Turkish lira. Stressing that the Armada Shopping Center, which chooses being in favor of its tenants as a principle, will convert dollar and euro-based lease agreements into lira, Hisarcıklıoğlu said in accordance with the Law on Regulation of Retail Trade, invoicing will also be prepared in lira in the common area.
In a statement made by Panora GYO, it was noted that the company is trying to unite the interests of the retail businesses operating in the Panora Shopping Center, which it regarded as business partners and its investors on a common ground.
The statement suggested that despite the ongoing ceiling rate implementation since Jan. 2009, the company will convert the foreign exchange-based lease contracts to lira with their willing business partners due to the upward momentum in the foreign exchange rates in the recent period.
The recent surge in the exchange rate for the U.S. dollar has forced many retail shop owners to close their stores after missing on rents at shopping malls that require payments to be made in foreign currencies.
The retailers have welcomed President Erdoğan's call to use lira as the currency for paying rents at shopping malls instead of foreign currencies.
Sinan Öncel, president of the United Brands Association (BMD), said the organized retail sector was pleased with President Erdoğan's statement. Pointing out that the president is addressing a vital issue in terms of Turkish brands, on the agenda of the country, Öncel said he was confident that the calls directed to the shopping mall managers would be answered. Noting that earning money in lira also means borrowing and spending in lira, Öncel said the Turkish brands expect a conversion into lira with a payable rate in shopping malls as well as street stores, stressing that they fully back President Erdoğan's calls for the transition from a foreign exchange-based economy to a lira-based economy.
Alp Onder Özpamukçu, the chairman of the Chain Stores Association (KMD), said they watched with regret different brands close their stores in shopping malls and streets, adding that people have closed stores where they could not attain a certain profitability and their biggest concern is the increase in the number of closed stores, which is something that is not welcome by the mall investors.
Özpamukçu suggested that shopping malls, which do not have a foreign currency debt and have completed the payment of the investment credits, should return to a lira-based rental system with a reasonable exchange rate after evaluating their investments. Özpamukçu also said other shopping malls should also fix the exchange rate.
Hasan Firat, chairman of the Grand Bazaar Traders' Association, stated that the shop rentals in the Grand Bazaar have been paid both in lira as well as in dollars up to now and that the shop owners are now focusing on the dollar and lowering the rents. Pointing out the shops that have been closed for the past four months after the tenants had difficulties paying rents in dollars and their contracts expired, Fırat said more than 100 shops in the Grand Bazaar are now closed due to rent-related problems and that the number is increasing every day. He also highlighted that if the dollar-based system continues, then there will be even more shops that would not be able to renew their contracts and will have to close eventually.
Armada, Panora malls to convert lease contracts to TLArmada and Panora Shopping Centers have decided to convert their foreign exchange-based lease agreements to Turkish lira in a show of support for President Erdoğan's call to use the local currency.
Rıfat Hisarcıklıoğlu, the President of Union of Chambers and Commodity Exchanges of Turkey (TOBB) and Söğütözü İnşaat, Chairman and partner at the Panora and Armada Shopping Centers, said they did not want to remain indifferent to President Erdoğan's call to change shopping center's foreign currency-based rents to Turkish lira. Stressing that the Armada Shopping Center, which chooses being in favor of its tenants as a principle, will convert dollar and euro-based lease agreements into lira, Hisarcıklıoğlu said in accordance with the Law on Regulation of Retail Trade, invoicing will also be prepared in lira in the common area.
In a statement made by Panora GYO, it was noted that the company is trying to unite the interests of the retail businesses operating in the Panora Shopping Center, which it regarded as business partners and its investors on a common ground.
The statement suggested that despite the ongoing ceiling rate implementation since Jan. 2009, the company will convert the foreign exchange-based lease contracts to lira with their willing business partners due to the upward momentum in the foreign exchange rates in the recent period.