Toombul shopping centre tenant labels Mirvac “unethical’ over cash flood cash payments

A Toombul shopping centre tenant who has lost millions after the February floods sparked the closure of the centre says Mirvac’s cash offer to retailers fails ‘the pub test’.

Property giant Mirvac has been labelled “unethical” by a tenant after its latest cash payment announcement to small retailers hit by the closure of flood-ravaged Toombul Shopping Centre.

Nextra Toombul owner Shane Griffin says the provision of the initial three months’ rent cash payment to retailers, and an offer this week of another three months’ rent to smaller retailers, was overall worth about $6m and “did not pass the pub test” considering the ASX-listed $9.5bn company’s financial strength.

“Why would anyone ever invest with Mirvac again – their actions show that they will do what suits them regardless of how many people they hurt and that their hollow words cannot be trusted,” he says.

“They’re a big company with a small problem that they refuse to fix. We’ve lost millions of dollars from their decision and they couldn’t care less.”

Toombul shopping Centre during the clean-up after the February floods.

Griffin says a $30m cash payment would have probably covered those flood-affected business still seriously out of pocket.

He lost about $3m when his newsagency was flooded and he says he’d be “happy” if he received $1.5m from Mirvac.

Griffin labelled Mirvac “unethical” and says they have not responded to his letters.

A Mirvac spokesman says given the unprecedented act of nature and the increased risk of further flooding, they made the “difficult decision” that it was not practicable to reinstate the shopping centre as it was.

“This decision was not taken lightly. We continue to liaise directly with our retailers and support those where we can,” he said.

“We have met with all retailers who have requested meetings and understand the hardship experienced by many, and the challenging time for those within the community. Many retailers have been appreciative of our support package as a gesture of goodwill.

“It is important that we be fair and equitable with our support for all our small business retailers. Given the circumstances of the flood, while we were under no obligation to make any support payment, we did so in recognition of the hardship faced by our retailers.”

Eyes peeled

There’s always plenty going on in the real estate industry and right now one of the biggest issues is the tight residential rental market which is creating stress with tenants and property managers feeling the strain.

REIQ boss Antonia Mercorellasays for every property there seems to be a multitude of applicants and warns people to keep a lookout for scams.

“It’s important to stay vigilant to rental scams ensuring that a property is legitimate and that the property owner is who they purport to be before transferring any moneys,” she says.

“Despicably, there are cyber criminals trying to take advantage of people who are desperate for a home, and a telltale sign can be a property advertised for far less than the average market rate of the area.”

However Mercorella reports there’s plenty to cheer about, especially the sector’s response after the February floods with member agents, partners, and sponsors of the organisation delivered more than $70,000 worth of support.

“I am incredibly proud and humbled about the way the REIQ team, members and sponsors mobilised so quickly, to offer boots on-the-ground support to people undertaking the difficult and emotional task of cleaning up their flood-impacted homes,” she says.

Real Estate Institute of Queensland chief executive Antonia Mercorella.