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Post Lockdown Strategy


River Rat

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The clue is that the tenants are effectively asking to renegotiate their leases by asking for rent relief.

Perhaps evaluate each tenant on an individual basis

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Okay let's start the first thing we have to do is determine the rules of the game let's start with some categories. I have

 

 

Political - government interventions

Finance - what can we expect from the banking community

Legal - this is both existing agreements as well as new state of disaster ones.

Sociology - will our behaviours remain the same or change.

Labour- how will the work force react.

 

Any additions to this?

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With the anchor tenants making up 65% of the total income and the doctors and legal frims adding a bit to this that meens that they want more than 30% drop in their monthly rental.  I can understand that the doctors, legal firm and clothing store would have taken a big hit during lock down but dischem and Spar should still be operating and earning income.  Will their income during this period have reduced that much?

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Retail, being a primarily retail centre, the retail market may look quite different to preshutdown

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Okay let's start the first thing we have to do is determine the rules of the game let's start with some categories. I have

 

 

Political - government interventions

Finance - what can we expect from the banking community

Legal - this is both existing agreements as well as new state of disaster ones.

Sociology - will our behaviours remain the same or change.

Labour- how will the work force react.

 

Any additions to this?

Can any of them die/cease to be business in the period?

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The clue is that the tenants are effectively asking to renegotiate their leases by asking for rent relief.

But there are no extraneous rules other than those set out above which govern this situation, i.e. if one were to enter into a rights based third party resolution (arbitration or litigation) those would be the rules which would be applied and their would be decision arising from the application of these rules.

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Okay let's take the comments into the rules.

1. Tenants are unable to pay their rents and the number varies from 0 -50% during the lockdown or directly thereafter.

2. Tenants are renegotiating their lease.

3. The banks are willing to renegotiate the terms of the loans.

4. Lockdown will be in effect to at least 16th April.

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Political - government interventions
Finance - what can we expect from the banking community
Legal - this is both existing agreements as well as new state of disaster ones.
Sociology - will our behaviours remain the same or change.
Labour- how will the work force react.

 

Are these not the key uncertainties and scenarios which need to be developed in step 2?

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Can any of them die/cease to be business in the period?

New rule some tenants won't survive the lockdown.

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Okay let's start the first thing we have to do is determine the rules of the game let's start with some categories. I have

 

 

Political - government interventions

Finance - what can we expect from the banking community

Legal - this is both existing agreements as well as new state of disaster ones.

Sociology - will our behaviours remain the same or change.

Labour- how will the work force react.

 

Any additions to this?

I would split government interventions into:

Political

Tax

 

Under political I see soft issues such as labour relations/environment

 

Tax - whatever comes our way

 

Also include shareholders as a seperate category

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Political - government interventions[/size]Finance - what can we expect from the banking community[/size]Legal - this is both existing agreements as well as new state of disaster ones.[/size]Sociology - will our behaviours remain the same or change.[/size]Labour- how will the work force react.[/size]

 

Are these not the key uncertainties and scenarios which need to be developed in step 2?[/size]

The extent of say government intervention is a key uncertainty that they will intervene is certain.

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Okay let's take the comments into the rules.

1. Tenants are unable to pay their rents and the number varies from 0 -50% during the lockdown or directly thereafter.

2. Tenants are renegotiating their lease.

3. The banks are willing to renegotiate the terms of the loans.

4. Lockdown will be in effect to at least 16th April.

From the comments two additional rules.

5. We will lose tenants.

6. Government will intervene.

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