We pulled 9 insights from the torrent of property news this week to keep you abreast of the most important insights affecting investors. 21-27 March 2020
In property news this week…
- Provincia Investor Update: Covid-19
- COVID-19 Support for Commercial Tenants
- Our office is closed but we are still open
- Commercial landlords at risk as some large tenants stop paying
- Term deposit rates slashed
- Augusta pulls property fund IPO
- Fletcher Building cancels dividend, suspends share buyback
- PMG closes its Generation fund fully subscribed
- Tenant rights could cost Kiwi Property $6 million
Provincia Investor Update: Covid-19
From midnight last night the Government implemented Level 4 of its Covid-19 management strategy. How is this likely to affect Provincia Property Fund?
COVID-19 Support for Commercial Tenants
COVID-19 is an unprecedented situation that continues to change rapidly. We want to make sure commercial tenants receive the support they need to survive.
Our office is closed but we are still open
We have mobilised our remote working plan and closed the office. All of our team, including property managers & admin staff, are now operating from home…
Commercial landlords at risk as some large tenants stop paying
The Property Council is calling for property owners, tenants and the Government to act quickly to support the commercial property sector, which is facing hundreds of millions in lost revenue, increasing the risk of stalling the economy.
“We are hearing of a multitude of scenarios regarding rental payments. At one end of the spectrum there are many landlords working constructively with tenants on their particular situations and discussing rent relief such as postponement or other relief measures. However, there are many examples of large tenants sending letters announcing they are refusing to pay rent with no consultation. This move could devastate the commercial, industrial and retail property sectors.”
Term deposit rates slashed
Last week, our biggest bank, ANZ, reduced its term deposit rates for terms of one year and longer to 2.35%.
And now one of their biggest rivals, ASB, as reduced its 1+ year offers to just 2.25%.
Augusta pulls property fund IPO
Augusta Capital Ltd has decided to withdraw the initial offering of the Augusta Property Fund. The decision comes a day after Augusta managing director Mark Francis announced that the proposed takeover of the company by Australian investment manager Centuria Capital Group had fallen through.
Company chair Paul Duffy and managing director Mark Francis said today: “The decision was made in light of Covid-19 lockdown and the effect of this lockdown on a number of the tenants in the Augusta Property Fund’s initial properties. As a result of that lockdown, rental relief is likely to either apply or be sought by tenants.”
Fletcher Building cancels dividend, suspends share buyback
Fletcher Building Ltd cancelled its interim dividend and suspended its share buyback on Wednesday. The dividend was due to be paid on 9 April.
Chief executive Ross Taylor also said the company would pause the divestment process for the Rocla business, announced at the group’s half-year results in February.
PMG closes its Generation fund fully subscribed
PMG has closed its Generation fund fully subscribed in the space of 4 weeks – a firm indicator that this kind of investment will be popular as returns from traditional investment options head toward zero.
Tenant rights could cost Kiwi Property $6 million
Kiwi Property Group Ltd said on Tuesday it could lose $6 million in rent from a small number of tenants which have a contractual right to suspend rental payments if they are unable or choose not to occupy or use their premises because of the Government order closing non-essential business premises for 4 weeks.