Mirvac criticised by Toombul tenants for not paying compensation

Mirvac has been accused of “unscrupulous and disgusting” behaviour after refusing to pay a cent of compensation to debt-laden tenants of shuttered Toombul Shopping Centre.

Mirvac has been accused of “unscrupulous and disgusting” behaviour after refusing to pay a cent of compensation to tenants of the now shuttered Toombul Shopping Centre.

Function Well owner Darren Bain said he spent more than $3m on a fit out of his gym last year on the upper floor of Toombul, but Mirvac had not lifted a finger to help him and other tenants get back on their feet.

Mirvac last week announced it terminating all leases at the centre and shutting the 54-year-old centre permanently pending a complete redevelopment after it was severely damaged during February’s floods.

Mr Bain said his lease provided for compensation in the event the centre was demolished but Mirvac claimed they did not have to pay if the building was damaged and could not be repaired. Mirvac claims the centre is too heavily damaged to be reinstated.

“We owe more than $1m in debt and Mirvac are not even helping us retrieve equipment from the gym,” said Mr Bain. “It is disgusting, lacking empathy and unscrupulous.

“They say they have an obligation to their shareholders but what about the mum and dad businesses in the centre that now are heavily in debt with no income.

Darren Bain and partner Tash at their gym before the floods

“Mirvac will have insurance and they also have an asset it can sell or redevelop. The tenants have nothing and Mirvac is using a loophole in the lease to avoid compensation.”

He said Mirvac’s communication with tenants about the future of the centre leading up to last week’s closure announcement had been poor. “We were told very little about what their long terms plans were,” he said.

He said when he signed the lease with Mirvac last year he was aware they had long-term plans to redevelop the site incorporating residential, retail and fitness facilities. “That is why I wanted the demolition clause in the lease,” he said.

A Mirvac spokesperson said the company’s “focus remained on supporting retailers.” “We are working with each of our retailers to discuss their individual circumstances, and we have provided our retailers with opportunities to retrieve their equipment or stock,” the spokesperson said. “We would encourage anyone that requires further access to contact the Toombul team directly to make arrangements.”

The spokesperson said the closure of the centre was a disappointing outcome for retailers and customers who had been very loyal to our centre, with many tenants operating from Toombul for many years. Further comment on the demolition clause in the lease has been sought from Mirvac.

Toombul Barber owner Luisa Laurito said they “have lost everything”.

Mr Laurito’s father started the business at Toombul Shopping Centre when it opened in 1967, and she and her business partners relocated in March to Ascot.

Asked whether she could put a monetary figure on the losses Ms Laurito said: “I don’t want to think about it”.

“We lost everything. We didn’t have any cover because we were 100 per cent flooded according to the hydrologist’s report. All Mirvac offered was Government support through government grants and mental health support. That was pretty much it.”

A spokesman for Funlab, which operated its only Archie Brothers Cirque Electriq on the top floor of the shopping centre, said their staff were working across the company’s other brands such as B.Lucky & Sons, Holey Moley and Strike Bowling.

He refused to comment on insurance and other flood-related issues but said another Archie Brothers will soon be opening in Brisbane.

“Regardless of the information surrounding the status of the Toombul Shopping Centre, Funlab remains committed to bring Archie Brothers and many exciting concepts to Brisbane as soon as practical,” he said.

In a statement McDonald’s Australia said they were disappointed Mirvac terminated their lease. “We loved being a part of the Toombul community,” the fast food giant said.

“We have offered all managers and crew employment at other restaurants in the area.

“We will take the time to review our options and update the community in due course.”

Toombul

Originally published as Mirvac criticised by Toombul tenants for not paying compensation