Few landlords have been willing to outline what levels of assistance have been provided to tenants however Blackwall Property Trust, who manage a number of commercial, retail and industrial assets have provided information on the current activities.
Blackwalls' approach is to provide rent abatements for all small businesses where economic survival is at risk and to offer rent deferrals to those tenants needing cash flow support. Blackwall have advised the 10 coffee shops and restaurants in their portfolio that no rent will be payable for April with a monthly review thereafter. Other small or vulnerable tenants have also been provided with rent abatements while other groups have been offered a mix of rent abatements and rent deferrals. Blackwall are requiring larger and more secure tenants to meet their commitments during this time in order to support those that are vulnerable.
Blackwall also own and run a Workspace business called WOTSO. They are a significant tenant in the assets which Blackwall own and its cashflow along with most workspace operators has been significantly impacted by the shut downs. WOTSO has offered all its members the opportunity to suspend their memberships with offices and or desks preserved for when members return, but will remain open for essential service activities, as long as the law permits.
Blackwall advised that the rent for all WOTSO facilities in the portfolio will also be deferred subject to review on a monthly basis.
BWR had adequate cash reserves and are seeking to lock in a further debt facility for the group, providing $22m of cash on hand with further capacity to extend the gearing above 24% (up from 20% at 31 December 2019).