HLG - Hallenstein Glasson

[freddagg]

I have several commercial tenants (all solid ) and one deal I would be happy to do with all of them is trade 6-12 months rent in return for a 10 year lease extension.

[iceman]

Do companies imagine Landlords have no bills.

You sign a lease honour it as no doubt companies will........

I agree with yo dreamcatcher. There has been some good discussion on this thread about commercial leases. Both landlrods and tenants are i an awful postion imposed on them by Government action.

But you have a similar situation with residential rental property of which I have a little. The Government has been very bad in this regard and shown their inexperience in unduly raising tenants expectations ad painting landlords as enemies. The latest is making a law change saying landlords can't increase rents or terminate contracts but tenants can terminate. That's after going public saying they were giving "landlords" a mortgage holiday, which is no such thing at all. It simply means delaying payments while you clock up extra interest. Where is the fairness in this ? I think Labour has pushed their political agenda too far now and they will get a big backlash from mum dad residential "landlords" or investors. That is sad and what we need right now

[Snoopy]

Depends on their lease.

During this current lockdown period some leases will require the tenant to keep paying the rent even though the premises are closed. Other leases may allow for rent to be suspended for businesses that provide non–essential services. However, there are a variety of different lease clauses in the market so it is obviously important to check the exact wording of the lease.

Quite right percy. Another quote from the reference:

https://www.propertynz.co.nz/news/re...uring-lockdown

"There is a similar clause in the Property Council NZ Office and Property Council NZ Retail leases but it limits the rent suspension to what the landlord can claim under its loss of rent insurance. In these circumstances that probably means the tenant gets no rent suspension at all." (under a COVID-19 closedown).

Ouch!

SNOOPY

[percy]

The big trouble I see is bullying.
Major anchor tenants,ie The Farmers,or Countdown will say to Landlords this is what we will pay.
Strong Landlords will say to weak tenants you must pay this.
The ongoing "fair" rent will not be adjusted quickly,or perhaps not at all.So although tenant/landlord may come to a temporary agreement,longer term retail will still be very difficult.[which means to me current rentals will not be sustainable].
Private landlords [mums and dads] I see a lot differently.Newly unemployed "should"/will receive a welfare rent payment to cover,or nearly cover their rent.A great number of mums and dads are in no position to offer rent holidays.[and should not be expected to].

[kiwico]

Depends on their lease.

I would imagine the ADLS standard lease will apply to small businesses in properties of small landlords. I would expect a company like KPG to have their own standard lease that all their tenants would be required to sign, with perhaps some alterations for anchor tenants. In my job I sometimes see leases signed by companies and for larger malls I've never seen any reference to the ADLS (assuming they have their name all over the agreement like they do on their residential purchase agreements).

Many mall tenants sign the lease they are given as they have no other option. Hopefully an outfit like HLG has more nous.

[winner69]

A big property guy(with some malls) once told me our real profit is in the leases we draw up ....inferring nearly everything is to their advantage.

[percy]

A big property guy(with some malls) once told me our real profit is in the leases we draw up ....inferring nearly everything is to their advantage.

Did he also tell you the tenant can be sued for going to the media complaining about his lease,or their landlords unfair actions.[yes written into leases].?

Next question.
I believe Tim Glasson is the landlord of HLG's ChCh City store.Will he waiver the rent for the lockout.?

[Snoopy]

Next question.
I believe Tim Glasson is the landlord of HLG's ChCh City store.Will he waiver the rent for the lockout.?

Now there is an interesting philosophical dilemma! If Tim waives the rent for his own building that would be a foot-shot. But if Tim doesn't waive the rent, on consideration of all the HLG shares he holds, that would also be a foot-shot. Perhaps the answer is that Tim should buy a pair of crutches ;-P?

SNOOPY

[winner69]

Mr Tim got just over $2m rental from the company - on independent commecial terms of course

I think the NZSA weren't too impressed with the disclosures when the Chch premises came up.

[dreamcatcher]

Think stores in malls with the largest square footage having the largest CLOUT anyway probably locked in for next 10yrs plus where termination fees would be expensive.

vacant space in malls a NO deal would be better then a BAD deal which has the potential to lower standards and price