Maybe all landlords should get a top lawyer....sue these tenants which have houses...new cars ..n toys at home
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Maybe all landlords should get a top lawyer....sue these tenants which have houses...new cars ..n toys at home
Pressure is now on KPT to do the right thing by its tenants - how the hell are its tenants supposed to pay rent when they cannot even access their premises!
Here's Westfield saying that they will be following the Australian protocol - so minimum 50% rent waiver with the rest to be deferred, on a tenant by tenant basis.
https://www.stuff.co.nz/business/120...ealand-tenants
"Scentre Group will immediately adopt the code principles and look to implement similar arrangements in New Zealand for affected small business retailers."
Not often I pay a compliment to Australians but good on Westfield and shame on KPT.
That is correct, but are you putting all of retailers into the seasonal business category? I have had owned businesses over 20 years in the retail sector, some were extremely seasonal and others were not. I worked through the GFC and I never failed to pay rent, GST, PAYE and all other expenses. People need to plan for the what ifs......
Talked to one of the Sylvia Park tenants today.
He said his priority is simple - pay his staff, pay his suppliers (especially the SMEs who are struggling like him), re-negotiate other payments due (PAYE, Provisional tax etc) and KPT can get stuffed. See them in court - he along with the other tenants.
He made the point that KPT used to be really good to deal with until Colonial took over the management. When Colonial sold out, the local management seemed to have caught the Ozzie bug - arrogant, uncompromising and uncommunicative.
Your friend and his friends need to take care.
Could find themselves locked out.
I do feel for people without rent for a month. I will have no revenue in my business for the level 3 lockdown coming up. It is serious and I understand. I hope to get some rent relief, but if I don't and I need to borrow/overdraft, I will. The government does not want businesses to close. I feel more for the employees, who are having a pay cut and trying to feed their family.
I employ 6 people part time and 2 full-time. I have offered them food from my own cupboards if they need it.
BAU-i certainly hope so but its early days. Unemployment aside, plenty of fashion houses (a mall mainstay) downsizing/closing around the world (and a bit here of course). One feels there is worse/a lot worse to come but Herald article yesterday, chap confident malls will evolve, might see more dentists and the likes replace the shops. Whether that attracts the masses that feed the small shops, who knows. On a US trip last year it was heart-wrenching to see how many malls were dead (as in totally, boarded up, grass in parking lots etc). Hope we dont get any of the same.
Town planning and zoning will make sure that malls here are relatively secure, i.e. not threatened by never ending competing developments. To aggregate sufficient land is expensive and painfully slow in NZ. Whereas in the states all vacant green-fields present an opportunity. Mall buildings are cheap structures and easy to throw up as long as land is cheap as it is in some of U.S states where shop development is uncontrolled. For the same reason they can provide almost unlimited parking so as to attract the punters from all around.
Walked through Northlands Morgue this morning.
Had the smell of decay about it.
Down the road KMart, Briscoes etc were doing the business.
https://www.nzx.com/announcements/354981
Kiwi Property business and dividend update22/6/2020, 8:30 amCORPACTKiwi Property is pleased to provide the following business and dividend update:
Pedestrian count
The number of visitors to Kiwi Property’s shopping centre portfolio has returned to pre-COVID-19 levels. Since New Zealand’s move to Alert Level 2 and the resumption of normal trading on 14 May, the average pedestrian count for the Company’s portfolio is up 1% on the same period last year. Some centres have recovered particularly strongly, including Sylvia Park in Auckland and The Plaza in Palmerston North.
Rent relief
Kiwi Property has taken a number of steps to mitigate the impact of COVID-19 across its business and to support its tenants. These measures include a comprehensive cost control programme and rent relief measures for affected retailers, and SMEs. Negotiations with Kiwi Property’s tenants are ongoing, however abatements are expected to be in-line with the guidance provided at the Company’s full year results (FFO [Note 1] impact of approximately $20 million or $14 million after tax, partially offset by an approximately $4.5 million reduction in tax resulting from the reinstatement of depreciation on commercial buildings).
Dividend
As previously reported, the Kiwi Property Board made the difficult decision not to proceed with the final dividend for the year ended 31 March 2020, due to the inherent uncertainty caused by COVID-19. In light of New Zealand’s return to Alert Level 1 and the increased clarity around the country’s trading environment, the Company intends to pay an interim dividend for the year ending 31 March 2021 [NOTE 2]. The dividend will comprise 90 – 100% of Kiwi Property’s underlying cash flows (AFFO [NOTE 1]) for the six-month period to 30 September 2020, in accordance with its new dividend policy.
Further dividend and earnings updates will be provided to the market once trading conditions and rental collections have normalised.
No paycheck for KPG shareholders until Christmas ...if things go OK
Observations from visiting Northlands Mall last week.[from memory so may not be exact]
Three large empty stores.
Four small empty stores.
Standard of tenants weaker.So many stores did not appear to have a viable business.A lot did not have the stock required to do a good turnover.
Shoe stores are not a good sector yet there were about four sport shoe retailers and possibly three or four standard shoe retailers.
Hairdressers.Two or three.Massage two,or three..Hair removal one or two.Nails etc two or three. ie over 10 in one sector.?
Foodcourt.McDonalds as usual were the only ones busy.