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Retail The AFR reported that Macquarie analysts have predicted retail rents and property values in shopping malls could fall up to 15% once stores reopen. Listed companies, like Westfield-operator Scentre and Chadstone’s owner Vicinity, could see these devaluations lead to earning declines of 27% over a 4-year period. (Shopping malls face falling rents and asset values – Nick Lenaghan, 21/04/20) Other analysts have estimated retail rents will decline further – Jefferies analyst Sholto Maconochie expects rents to drop by up to 30% over the next 2 years. The AFR reported that, despite the stimulus, the retail and commercial sectors will continue to suffer long-term in the wake of COVID-19. (Retail rents set to fall 30pc – Nick Lenaghan, 23/04/20) The Age has reported that Vicinity Centres has threatened legal action against retailers who close to protect employees during the pandemic, in an apparent breach of new rules aimed at protecting struggling retailers. (Retail property giant threatens action against tenants who close doors – Samantha Hutchinson, 22/04/20) The ACCC has now permitted retailers to collectively bargain with their landlords for rent relief. Read more on Commo: Retailers granted authorisation to collectively negotiate with landlords.
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