Sydney Kingsford Smith Airport outlined (11-Aug-2020) the following commercial approach to tenant support, as a standard set of principles resulting in fair and equitable outcomes:
- Principled approach:
- Code of Conduct framework applied to all negotiations, adopting the principle of proportionate relief;
- Financial transparency required from tenants before relief was granted;
- No structural changes to contracts, temporary relief only;
- Relief outcomes:
- AUD52.9 million (USD37.8 million) of rental abatements provided to retail and property tenants across Apr-2020 to Jun-2020, equivalent to 62% of contracted rents by value;
- Following accounting standards to recognise a reduction in revenue over the life of the contract upon the agreement;
- Further negotiations beyond Jun-2020 are in progress. [more - original PR]