PHOTO: ANUJA NADKARNI/STUFFKiwi Property owns New Zealand’s large shopping centre, Sylvia Park.Pictured K Mart’s 24-hour store opening last year.
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.
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