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25/08/20
13:35
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Originally posted by JAar:
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Highly doubt it. Regardless of ability to pay rent (which they clearly have the ability to do), the market rate for rent has decreased and Mosaic management are clearly seeking a negotiation befitting of the current scenario. Normally, the landlord would win on contract, but in black swan events such as these, the reality is if the landlord was to seek new tenants, it would be very unlikely they would find suitable tenants in a quick turn around AND new tenants would need to be incentivised with heavily discounted rental agreements. I doubt there will be many businesses looking to invest in physical retail space during the next year. Both sides are playing hardball, but in theory I cannot see a situation where the landlord would win in court as a judge would expect some compromise. Mosaic have reached out with a proposal they believe is fair. Let's not forget, it's the landlord that decided to turn the lights off, not paying rent is a consequence of the landlord's lack of action.
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Turns out they don't have the clear ability to pay rent. $25m in unused facilities and a $49m provision for rent in properties they won't occupy going forward...and that's after $49m in jobkeeper.