The point of the article is to point out that Scentre would most likely be unwilling to renegotiate rent to a lower annual amount as they can easily get higher rent from different retailers in the flagship Sydney property. They could negotiate a ladder rental agreement by lowering rent now and stepping it over x years. However, this comes with high risk as they would have to guarantee sales growth due to fixed charge coverage covenant and potential breaches.
MYR Price at posting:
40.5¢ Sentiment: Hold Disclosure: Not Held
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