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04-04-2020, 05:50 PM
#4171
Member
Originally Posted by Balance
Would not waste one minute sleep to worry about HLG's survival - along with BGR, two of the strongest consistently performing retailers with very strong balance sheets.
Agree Balance, they are two of the best no question.
But no retailer enjoys a recession, and this one has the potential to be the worst for 90 years.
My guess is the board will be losing sleep in the coming months.
Hopefully not too much, perhaps just a sleeping pill will fix it.
But I don't think so.
Last edited by Flugenbear; 04-04-2020 at 05:51 PM.
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04-04-2020, 08:09 PM
#4172
Originally Posted by Beagle
HLG back up and running - in a website way at least! Couta on the way back! It is interesting to see what is deemed essential at Hallensteins. Our volunteer firemen can buy a new pair of pants (Park Pursuit Jogger Jeans $69.99) but they can't buy a Kitt Ronney Belt ($29.95) to hold them up!
I guess our fireman can live without a 'Game Pad Hand Trainer' and a 'Fake News Game - Kayne Edition'. A bit off that they can't enjoy a 'Wireless Shower Speaker' at the hose down at the end of the day though. Those last three have all been marked down to 5 bucks. Will they still be that price when Level 4 is lifted?
SNOOPY
P.S. I was right about HLG being back. But even I didn't expect it to be this quickly!
Last edited by Snoopy; 04-04-2020 at 08:23 PM.
Watch out for the most persistent and dangerous version of Covid-19: B.S.24/7
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05-04-2020, 09:40 AM
#4173
Originally Posted by Flugenbear
Agree dreamcatcher. The next 2 or 3 years could be hell for retailers. I hope HLG survive. Pretty sure they will though might need more capital.
agree with you again. no dividends this year they will really need all there cash they can get there ands on might even need to raise bank debt. situation more serious with each % decline in sales vrs there fixed cost base.
one step ahead of the herd
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05-04-2020, 09:57 AM
#4174
No help from a Landlord.
“In the meantime, we wish to remind our tenants that their obligation to pay rent and other usual charges continues throughout this period unless the lease expressly states otherwise.
“Yours sincerely Kiwi Property Group Limited.”
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05-04-2020, 10:29 AM
#4175
Originally Posted by percy
No help from a Landlord.
“In the meantime, we wish to remind our tenants that their obligation to pay rent and other usual charges continues throughout this period unless the lease expressly states otherwise.
“Yours sincerely Kiwi Property Group Limited.”
Of course KPG will need to be seen to be saying the right things in order to extract as much as possible from a bad situation, but behind the scenes there is little doubt there will be some confidential negotiations going on...
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05-04-2020, 10:38 AM
#4176
Originally Posted by Cyclical
Of course KPG will need to be seen to be saying the right things in order to extract as much as possible from a bad situation, but behind the scenes there is little doubt there will be some confidential negotiations going on...
Yup.
I personally know a few mall tenants who have collectively withdrawn their rental payments - what are the KPGs of NZ going to do? Terminate their leases and sue them? Not going to happen - especially post lockdown, good tenants are going to be hard to find to replace the broke tenants.
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05-04-2020, 10:47 AM
#4177
Originally Posted by Balance
Yup.
I personally know a few mall tenants who have collectively withdrawn their rental payments - what are the KPGs of NZ going to do? Terminate their leases and sue them? Not going to happen - especially post lockdown, good tenants are going to be hard to find to replace the broke tenants.
Hopefully they are not "collectively" locked out of their stores.
Wish I had some faith in landlords doing the right thing.
Last edited by percy; 05-04-2020 at 10:50 AM.
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05-04-2020, 11:03 AM
#4178
Originally Posted by percy
Hopefully they are not "collectively" locked out of their stores.
Wish I had some faith in landlords doing the right thing.
A review of the rent situation by Jane Holland, Partner, Bell Gully
https://www.propertynz.co.nz/news/re...uring-lockdown
The conclusion:
"In my view that clause ((Clause 27.5 and 27.6 of Auckland District Law Society Sixth Edition), introduced in 2012 in response to the Christchurch earthquakes) will operate to suspend rent and outgoings (for businesses providing non-essential services) during the Alert Level 4 lockdown. Where a tenant is providing an essential service, but doing so from only part of the premises, the position is less clear at this early stage."
That means no rent from HLG due to property owners until we drop back to level 3.
SNOOPY
Last edited by Snoopy; 05-04-2020 at 11:08 AM.
Watch out for the most persistent and dangerous version of Covid-19: B.S.24/7
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05-04-2020, 11:07 AM
#4179
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.
Going from Kiwi Income Properties letter I previosly posted, very few of their leases will have an out clause.
I expect other Mall owners to have similar leases.
Last edited by percy; 05-04-2020 at 11:09 AM.
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05-04-2020, 11:10 AM
#4180
Do companies imagine Landlords have no bills.
You sign a lease honour it as no doubt companies will........
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