Up Again: Premises and workplace

Premises and workplace Q&A

Are there any specific obligations, liabilities or duties of conduct imposed on landlords, tenants or visitors with respect to the use or re-use and decontamination of premises; care, cleaning and maintenance of the exclusive and common areas; reporting requirements and/or measures in case of identified infections; health and safety issues - e.g. recommissioning water systems to avoid virus, installation of plexiglass screens, moving desks to comply with distancing. remodulation of fire prevention strategies (entrance/exit routes)? Is any distinction made between asset classes?

There is a government order in place ordering the shut-down of shopping centres, theatres, restaurants (take-out excepted), bars and certain other establishments. The order is being strictly enforced. However, the shut-down restriction was lifted for shopping centres on 11 May 2020 and for restaurants and bars on 18 May 2020, but remains in force for theatres and certain other establishments.

Also, there is a ban on gatherings of more than 10 people. The ban is being enforced by the police in the public domain. The ban includes shops and remains, for the present, in force until 8 June 2020.

In addition, the government has issued COVID-19 guidelines to various businesses aimed at mitigating the spread of the Corona virus.

The various guidelines apply to

retailers;
service providers such as hair-dressers, tattoo-shops, physiotherapists, dentists, etc. having close contact to the customer;
offices;
building sites.

The guidelines do not have the force of law but are widely complied with.

Are there any rent suspension measures and/or stay of recourses and actions (including eviction) or any Government support initiatives such as a furloughed building grant scheme (if so, maybe only a part of the building should be re-occupied)? When rent suspension measures are available, what is the usual payment mechanism and timing agreed to by the parties?

No.

However, the Danish government has introduced various schemes regarding businesses’ possibility to have fixed costs reimbursed. Subject to fulfilment of certain conditions, businesses are entitled to total or partial reimbursement from the state of certain specified costs which include payment of rent. The rate of reimbursement for businesses that qualify ranges from 50% to 100% dependent on the loss of revenue (top line) sustained by the business affected.

Are there specific tax reliefs on payment or collection of rent instalments? Do they apply subject to actual payment or regardless? Do they apply generally or only to specific asset classes?

No.

However, the government has deferred the due dates for payment of VAT by up to 1-4 months.

In addition, small and medium-sized businesses that have paid VAT in Q4 2019 and Q1 and Q2 2020 may apply for a return of such payments in the form of a loan to be repaid on 1 April 2021.

Are there any measures regarding relief from the performance of real estate-related contractual obligations?

No, not generally.

Are there any credit facilities in place to mitigate loss of income for landlords?

No.

Is there any relief from loan repayments / enforcement of loans secured against properties?

The government has introduced schemes for reimbursement of fixed costs. Subject to fulfilment of specific conditions, businesses are entitled to total or partial reimbursement of certain specified costs which include interest and charges on loans (but not repayments). The rate of reimbursement is 50-100% dependent on the loss of revenue (top line) sustained by the business affected.

Are public services necessary to complete the sale, acquisition or other operation of real estate assets or companies or to establish the right to open for business (planning authorities, notary public, Land Registry, Companies’ Registry, etc.)?

Yes.

Are there any specific processes or protocols available to consummate real estate operations enabling them to comply with any required social distancing (e.g. electronic signature, etc.)?

Property transactions may be signed electronically. The Danish land register has been digitalized so conveyances, mortgages and other documents must be filed electronically.

Are contractors who were carrying out works within the premises obliged to resume them? Can building sites reopen when they were closed down? Are there any specific provisions in relation to certain asset classes authorising continuation / resumption of works (e.g. healthcare structures)?

There has been no mandatory shutdown of construction works and construction sites during the Corona crisis.

Are there remedies or contractual arrangements available to address impossibility or delay for a party to handover premises to another which are/were to be constructed or refurbished, or for such other party to take over those premises?

Force majeure may be relied on in specific circumstances where the performance by one party of its contractual obligations has been rendered impossible due to unforeseen circumstances.

Has the duration of validity of administrative authorisations pertaining to development/construction of real estate assets (in particular planning authorisations) been extended?