Crescat Mall to close for repositioning; noticed tenants unhappy

Saturday, 16 November 2019 00:03 - - {{hitsCtrl.values.hits}}

One of the oldest malls, the popular Crescat at Colombo 3 is to shut down in February, causing concern among several tenants, although its promoter John Keells Holdings says the move was critical for a much-needed revamp and repositioning before reopening mid next year.

Several existing tenants who have been served the due three-month notice of termination claimed that the closure wasn’t warranted and the move has jeopardised the continuity of their businesses and employment. They also alleged that the Crescat management hasn’t been forthcoming with information and the termination notice and closure announcement came as a surprise.

It was claimed that Crescat had assured continuity despite the setback following the Easter Sunday tragedy when some tenants had renewed their contracts. Business as usual also been the response when concerns were raised over the future of Crescat in the light of the mega Cinnamon Life mixed development taking shape at Colombo 2.

The sudden and impending closure of Crescat, according to tenants, has left them high and dry with regard to finding alternative locations at short notice.

The anxiety among some tenants has heightened as they may have not considered new options such as Colombo City Centre and One Galle Face when they became available for signing up. In contrast, several had moved out and relocated at the newer malls. At its prime, Crescat had around 80 tenants; now it has been reduced to around 50 or below.

A spokesman for Crescat management said that to remain competitive and avoid losses they have to reposition the facility with a greater mix of office space apart from having a few select commercial, food and beverage outlets.

Being adjacent to the Cinnamon Grand, which was impacted by the Easter Sunday terror attacks, Crescat had seen a sharp drop in footfall soon after. In the aftermath, rental was waived off and discounts of 50% and 25% were extended as relief to tenants. To cushion the impact of closure, rentals of all tenants have been waived off for three months.

Existing tenants said the closure of Crescat, even for a temporary period of six months, could cause concern among residents of luxury apartments Monarch and Emperor directly, as well as Crescat Residences, the shopping mall having been an integral part of the value proposition at the time of selling.

No assurance has been given that existing tenants would be considered when a repositioned Crescat reopens mid-2020.