Kiwi Property may lose $6 million in rent in the Government lockdown to some lucky tenants
Tuesday, 24 March 2020
Huge shopping malls and office landlord Kiwi Property may lose about $6 million in revenue from lucky tenants who do not have to pay rent during the four-week lockdown if they don't occupy the buildings.
'In light of the four-week closure of non-essential business ordered by the Government yesterday, Kiwi Property has identified a small number of tenants, relative to the total number of tenants in its portfolio, with a contractual right to suspend rental payments if they are unable or chose not to occupy or utilise their premises because of the Government order,' the company said.
'If all of the tenants exercise this right for the entire four-week shutdown period, the company expects it would result in a drop in gross rental income of around $6m, representing less than 3 per cent of the prior year's gross rental income.'
Kiwi Property has $3.3 billion of retail and office buildings in New Zealand, 70 per cent in Auckland.
**READ MORE:
* Sylvia Park mall set to get hotel, apartments and office building
* Kiwi Property is tapping into sun power with 672 solar panels at Northands Mall**
It has not revealed who the tenants are or the number and their locations. Its reports show it has some heavyweights like ASB Bank, Ministry of Social Development, Farmers, ANZ Bank and Progressive Enterprises.
It is the largest property company on the New Zealand sharemarket .
It owns New Zealand's largest shopping centre, Sylvia Park in Auckland and others like The Base in Hamilton, The Plaza in Palmerston North and Northlands in Christchurch.
Its office buildings include ASB North Wharf and the Vero Centre in Auckland and The Majestic Centre, The Aurora Centre and 44 The Terrace in Wellington.
On Monday it said it had refinanced $214m of debt facilities for five years and had $303m in undrawn credit lines and a gearing ratio of 29.2 per cent.