Varma Freezes Restaurant and Café Rents

    Stockholm (NordSIP) – Varma, the Finnish pension fund, has announced that it will not be collecting rent from its café and restaurant tenants in May and June due to the coronavirus epidemic.

    The decision is motivated by a new law that will, with some exceptions, close cafés and restaurants, for two months to prevent the spread of the coronavirus. According to Varma, the new law hinders cafés’ and restaurants’ ability to continue their business as usual. Moreover, their clientèle has already declined due to the decreased demand triggered by pandemic concerns, with Varma noting that some establishments already had to shut down.

    “As a property owner, Varma wants to support its tenants in this changing operating environment. We believe it is important for thriving companies to have the conditions they need to continue their operations even after this exceptional situation. We are now giving restaurant owners a two-month reprieve in their rental payments,” says Ilkka Tomperi, Investment Director, Real Estate Investments.

    Varma gave these entrepreneurs the possibility to freeze their rental invoices for two months – May and June. The Finnish pension will draw up a separate payment plan for the frozen rental payments with the tenants. This decision gives entrepreneurs the conditions to continue their business operations also after the exceptional situation, the Finnish pension fund explains.

    “The corona crisis has been an extraordinarily powerful event that has very rapidly caused extensive negative financial impacts. It is important for society and the economy to recover from the shock we have faced as quickly as possible. We want as many of our customers as possible to also be able to enjoy that recovery, and that is why we want to help these companies during the worst months wherever possible,” says Tomperi.

    Image by JayMantri from Pixabay

    Filipe Albuquerque
    Filipe Albuquerque
    Filipe is an economist with 8 years of experience in macroeconomic and financial analysis for the Economist Intelligence Unit, the UN World Institute for Development Economic Research, the Stockholm School of Economics and the School of Oriental and African Studies. Filipe holds a MSc in European Political Economy from the LSE and a MSc in Economics from the University of London, where he currently is a PhD candidate.

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