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Retailers cough up $183 million in rent for Scentre Group

Woman browsing clothes store
Scentre Group raked in more rent from retailers last month. Image: Unsplash.

Scentre Group has collected $183 million in rent payments for the month of August, as more customers return to shopping centres.  

After a major dip in rent payments during the months of April and May, the shopping centre company has benefited from the reopening of stores and increased foot traffic.

Scentre Group collected 70 per cent of gross rental billings for the six month period, and 80 per cent in the months of June. The August figure represents 86 per cent of monthly gross rental billings, up from 82 per cent the previous month.

At the company’s FY20 results in late August, Scentre Group reported a 16 per cent drop in revenue to $1.09 billion for the six months to June 30.

Chief executive Peter Allen said at the time that more than 93 per cent of retail stores have opened across the portfolio and the group will not be making changes to rent agreements – with fixed rent costs and annual increases tied into rental contracts.

“The structure of our leases with our retail partners has not changed and remains based on the mutual agreement to pay a fixed rent,” Allen said.

In August, Scentre Group locked out the tenants of about 150 stores across the country in an effort to put pressure on retailers playing hardball on rent, and according to a report in The Australian, Premier Retail, which owns Just Jeans, Portmans and more, was issued breach notices which could see the sites shut down.

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