Rent relief continues beyond lockdown
Christchurch’s biggest commercial landlords are continuing to offer rent relief to tenants suffering from the Covid-19 downturn despite being out of lockdown.
The Government announced yesterday that commercial tenants and landlords unable to reach a fair rent reduction agreement must enter taxpayersubsidised compulsory arbitration. The Property Law Act will be temporarily amended to allow for the scheme.
Central city landlord Antony Gough, who owns The Terrace complex, said he was continuing a rent discount package for his hospitality tenants until October, and other landlords said they planned to keep providing assistance until mid-July.
National leader Todd Muller, speaking at Original Sin restaurant in Christchurch yesterday, said the Government’s rent relief plan through arbitration ‘‘misses the point entirely’’ and was ‘‘too little too late’’.
‘‘We think the whole concept is flawed,’’ he said. ‘‘What businesses needed [is] cash, support and injection of that cash support . . . that would’ve enabled both the commercial landlord and [tenants] to be able to manage their own business.’’
Gough said he was taking ‘‘quite a long-term approach’’ and was not sure how tenants would trade though winter.
During the lockdown, Gough wrote off 50 per cent of the rent for hospitality tenants and is allowing them to pay off the remaining half interest-free over two and a half years from 2022.
During level 2 and through to October, Gough is charging at least 50 per cent rent, depending on turnover.
‘‘We don’t want our tenants to fall over. We want to look after our tenants.’’
All his hospitality tenants are still operating, and Gough hopes trading will return to normal by October. He estimated the measures will cost about $500,000.
‘‘We’re trying to be pragmatic. Yes it hurts us but it’s hurting them too. There’s no relief for us from the bank. They want their interest. I’m borrowing capital to pay the bank interest.’’
Some of Gough’s office tenants had also received rent relief, but not essential businesses such as Westpac Bank, he said.
Tenants at Riverside Market and Riverside Retail Lanes in the central city have been offered rent relief until mid-July in an effort to keep their doors open. Tenants were given an 80 per cent discount on their rent in April, 50 per cent discount in May and 20 per cent through to mid-July.
Riverside general manager Mike Fisher said people were starting to come back to Riverside but there was still a way to go before the market reached preCovid levels. The rent relief had been welcomed by tenants trying to get back on their feet, he said.
‘‘We wanted all the tenants to survive and come out at the other end and thrive again.’’
Fisher said two businesses had closed, but they had indicated before lockdown that could happen. Other businesses already want to take their place.
BNZ Centre owner Nick Hunt said he had given rent relief to tenants, but he did not want to comment further.
The Colombo mall co-owner Caroline Cooper-Dixon said the company waived rent altogether in April, and discounted by 50 per cent in May and 25 per cent in June.
‘‘Our business is family owned. We’re quite close to our tenants. Their success matters to us. It’s the success of Christchurch and the city.’’
Cooper-Dixon did not want to say how much the rent relief had cost the business.
She said she hoped she would not have to use the new Government scheme because she had a good relationship with tenants.