Westfield owner flags rent relief for stressed Sydney tenants

Mall giant Scentre says it will help smaller tenants with rent deferrals during Sydney’s Covid lockdown.

Peter Allen is the CEO of Scentre Group, which manages all Westfield Centres in Australia. Picture: Aaron Francis

Scentre Group, which controls the local Westfield empire, has flagged rent relief for tenants in Sydney centres hit by lockdown restrictions.

The group‘s shopping centres in the city have remained open as an essential service but many smaller businesses are either shut or have limited trading.

Scentre chief executive Peter Allen said in a note to tenants that the impact of the past couple of weeks and ongoing restrictions and uncertainty was being felt by all.

“It’s especially tough for our SME retail partners or ‘mum and dad’ retailers in Greater Sydney. Many have temporarily closed as a result of the health orders while others have decided to close because of the additional limits on movement,” he wrote.

Mr Allen flagged that rent deferrals would again be used, as in earlier lockdowns.

“We are committed to working with SME retailers (aggregate annual turnover less than $5 million) to mitigate the short-term cashflow impact on their business during this time through appropriate rent deferral,” he wrote.

Scentre will focus on this smaller end of its tenant base with big chains to be dealt with separately. Retailers like supermarkets may benefit from lockdowns in the short term, as customers stock up.

“We know from support already provided through the height of the pandemic that this is the cohort of retailers who need assistance," Mr Allen said. “Where needed, we encourage our SME retailers to contact their Westfield centre or leasing account manager and talk to us about their individual circumstances.”

Mr Allen is offering Westfield centres to federal and state medical authorities for use as temporary vaccination hubs. In Victoria it had drive-through testing clinics in some centre carparks and this could be a model for the hubs.

He is optimistic customers will return to centres once the lockdown lifts.

“Our experience to date gives us confidence we will once again see a similar rebound in customer visitation as soon as restrictions are removed,” he said.