Rent relief uncertainty
Coast’s big landlords yet to commit to price cuts
BIG Gold Coast landlords who posted mega million-dollar profits will not say if they will give struggling tenants rent relief during the COVID-19 pandemic.
The Bulletin approached major landlords such as Pacific Fair owner AMP Capital and Oasis Shopping Centre part owner Abacus Property Group, but none stated they would be cutting rent.
A number of restaurants, cafes and bars closed on Monday at noon due to new restrictions on social gatherings, although some have remained open to offer takeaways.
Abacus made a profit of $82.1 million for the first half of this financial year while AMP Ltd, the majority shareholder of AMP Capital, had an underlying profit of $464 million for FY19.
One Oasis tenant, speaking on condition of anonymity, said the landlords would be playing hardball and waiting to see which tenants survived the harsh economic climate.
Pacific Fair Centre general manager Shaine Beveridge said the centre would provide support to its tenants, without outlining any specific details on what that entailed.
“Following the recent government announcements of further restrictions to trade, most of our restaurants and cafes are all still open for takeaway and food delivery services,” Mr Beveridge said.
“We continue to support our retail partners as we navigate through this difficult time to ensure that Pacific Fair can continue to trade and provide essential services.
“We recognise every retailer needs different support and are speaking with them directly to understand their particular circumstances.”
A spokeswoman for Abacus Property, which co-owns the Oasis Shopping Centre, declined to comment, while a spokeswoman for Australia Fair said rental rates were “confidential”.
One leasing agent said his office had been flooded with calls from tenants asking for rent relief.
He said landlords would wait to see what specific measures the state and federal governments unveiled before acting.
Attwood Marshall Lawyers’ Barry van Heerden said shopping centre tenants needed to band together.
“It’s best for shopping centre shop lessees to form an alliance and to renegotiate rents as a group with the shopping centre owners – usually large national or multinationals – with the assistance of a commercial lawyer who can negotiate effectively and draft appropriate amendments to their current leases,” he said
“All parties to a contract must remember they cannot create ‘corona-clauses’ to avoid their liabilities in a contract.
“Tenants must not breach the terms of their lease, otherwise they can be sued, and likewise, landlords must stick to their contractual obligations also.”