Vitalino Canas validates the variable rents proposal for tenants in shopping centers

Opinion commissioned by the Association of Retail and Catering Brands concludes that the legislative change proposals presented by the PSD and the PCP constitute an economically and socially more adequate solution, in addition to not generating any constitutional problems.

The proposals for variable rents to be paid by shopping center shopkeepers, presented by the parliamentary groups of PSD and PCP have raised several doubts of unconstitutionality, but Jornal Económico knows that an opinion commissioned by the Association of Retail and Restoration Brands (AMRR) at constitutionalist Vitalino Canas considers this new mechanism to be legal.

“In order to dispel any doubts raised about the possible unconstitutionality of the PSD and PCP's proposals regarding the income of tenants in shopping centers, AMRR - Association of Retail and Restoration Brands requested an opinion from Professor Vitalino Canas, professor of Constitutional Law at the Faculty of Law of the University of Lisbon that concludes, in the executive summary, that the amendments to the Supplementary Budget law proposal that are being voted on this week in the Assembly of the Republic, are not only not unconstitutional, but represent an important improvement in order to balance the legal-contractual relationship between the owners of the shopping centers and the tenants ”, highlights a statement from AMRR.

According to this note, “the commercial exploitation contract between owners and tenants usually provides for variable remuneration, that is, the remuneration according to the volume of business generated, with a guaranteed minimum monthly remuneration”.

AMRR also adds that “the proposals that will be discussed in the Assembly of the Republic provide that, during the period in which the establishments were closed and during the subsequent months where there are legal and demand restrictions, tenants must pay the variable remuneration, dividing it accordingly the risk with shopping center owners ”.

"According to the requested opinion, this solution is economically and socially the most appropriate, as it does not generate any constitutional problems, and in fact, it comes to provide a legislative response more in line with the Constitution of the Portuguese Republic than the one currently in force" concludes the AMRR statement.

Vitalino Canas withdrew this week from running for a seat on the Constitutional Court.

The proposal for a legislative change on the variable rents of shopping centers has already led the Portuguese Association of Shopping Centers (APCC) to warn of the possibility of bankruptcy of shopping center management companies that the new legislation may cause.

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