Your selected location:
11 Apr 2020

HHG Legal Group’s Property team’s Anne Hurley explores the proposed measures to assist landlords supporting tenants during COVID-19, following the announcement of the SME Commercial Leasing Principles Code of Conduct last week.

20200411 Commercial leasing IA

We recently discussed the SME Commercial Leasing Principles Code of Conduct which the Federal Government recently announced to assist tenants with loss of revenue as a result of the COVID-19 pandemic.

 

We highlighted in that article the need to give special consideration to small property companies and entities like SMSFs who rely on rental income in retirement. Landlords are telling us they are concerned with how they are going to comply with their financial commitments to their banks and give this relief to their tenants.

Commercial landlords may now have some of this burden lightened as the Australian Banking Association has announced proposed measures by banks to support commercial landlords who assist tenants during this COVID-19 pandemic.

The type of businesses that these measures would appear to apply to includes commercial landlords of properties such as local shopping centres, pubs, clubs and restaurants.

Whilst these measures are subject to approval by the ACCC but they are a good starting point for financial relief for commercial landlords who assist tenants with loss of revenue as a result of the COVID-19 pandemic.

Commercial landlords should consider whether this relief will apply to them which is given on an “opt-in” basis and whether they qualify under the following conditions:

  1. an undertaking must be given to the bank that for the period of the interest capitalisation, that they will not:
    1. terminate leases; or
    2. evict current tenants for rent arrears as a result of COVID19;
  2. they have advised the bank that their business is affected by COVID-19;
  3. they are  current in terms of existing facilities 90 days prior to applying for this relief; and
  4. the relief provided means that interest is capitalised – that is, the term of the loan is extended by the deferral period payments are increased after the deferral period.

The two key measures (subject to the conditions above) are:

  1. Businesses with total business loan facilities of up to $10 million (increased from the $3 million small business threshold) to be able to defer loan repayments for six months (facilities above $10 million will be considered on a case by case basis); and
  2. Banks will not enforce business loans for non-financial breaches of the loan contract (such as changes in valuations)

HHG Legal Group can assist

For over 100 years HHG Legal Group has been proudly serving Western Australian families, business and individuals. Never before has the State seen such a crippling time for many small businesses and we are committed to supporting the communities in which we operate.

If you require advice relating your commercial leasing obligations in the time of COVID-19, or require other property law advice, we are offering unprecedented initial consultation fees (for example, the below video consultation fee is 50% off our normal rates) to assist struggling businesses through this challenging time.

You can send us an enquiry to book a virtual meeting with a property lawyer or call us on 1800 609 945.

Return to COVID-19 Resources Page

*This is general information only, and does not constitute specific legal advice. Please consult one of our experienced Legal Team for specific advice relevant to your situation.

Supporting Western Australians for more than 100 years

"Always fast and thorough service. Thank you"

Sitka Pil

My circumstances at the time I made contact with HHG were dire following my argument being rejected by two no win no fee firms. Following my initial meeting with HHG's employment law team I was left feeling extremely positive by the response and concern shown by HHG in regards to their support of my argument along with their preparedness to pursue an outcome on my behalf.

I accept the fact that nobody really wins in these cases (mental health/ workplace) however the end result was what would be considered most favourable and far in excess of what would have been achieved had I not sought the advice from HHG.

I have no hesitation in recommending HHG to anyone caught up in the messy circumstances I found myself in at the time.

Great advice and five-star commitment to their client!!"

Nathan Lynch

"Thank you for such great assistance with the transaction of Flying Domestics on behalf of Lorna Good. It has been such a pleasure to work with the HHG Legal Group and I look forward to working with you in the future."

Jim Goodwin

"Simon Creek and his team were at all times empathic, professional and confident.  My matter needed to be addressed within a pressing time frame, and their availability at short notice and contact after hours was much appreciated.  It caused me considerable stress, but having such a thoroughly reliable and competent team to call on helped me to feel in control. Although I hope not to need their services again in future, I would be confident in doing so!"

Dr Lana Bell

"A good outcome is what we can expect.  A great outcome is a sign of a company which does the very best for their clients. A very big thank you to Daniel Morris for showing empathy towards my small and much needed legal action.

To HHG Legal Group, thank you for a great outcome.  I would recommend your company to anyone seeking legal services."

Jan Atkinson

"Your support this morning was amazingly kind, not to mention your totally reassuring competence, knowledge and wisdom that you used on my behalf.  It was extremely reassuring to have your knowledgeable support, and I particularly appreciated your real and obvious kindness to me. It means so much at a very difficult time. I'm so grateful to you."

Family Law Client

"Janene was very professional and we established a good rapport quickly. The subject of death and wills can be quite confronting to deal with, however, Janene's approach was soft and accommodating."

Lynette Livesey

"A big thank you to HHG for their professional service, continued support, and wide range of legal knowledge. Our clients have given us nothing but kind words regarding HHG Legal Group and so we have no hesitation in referring and recommending Simon Creek and HHG Legal Group for their outstanding services and legal expertise."

Nigel Plowman, Director at McKinley Plowman & Associates

"Simon is a friendly and practical legal advisor. I have received great feedback from the clients I have referred to him and his team at HHG Legal Group."

Richard Beal, Director at BDO

"Over the last few years, I have been impressed by Simon’s legal ability, management skills, entrepreneurial spirit, personal integrity and people skills. He appears to be that rare breed of lawyer – both knowledgeable and commercial."

Michael Malone, Founder of iiNet

"Our family has been a client of HHG Legal Group over many years.  Business has included drawing up of wills for three generations and preparing of probate for my father in law. I would have no hesitation in recommending HHG Legal Group to anyone requiring such services."

Bernice Climie

"You should be congratulated for the manner in which your staff address clients and we found our dealings with your company, once again a very pleasant experience and we would like to truly thank you for your efforts."

Steve Harvey and Jane Powell

"HHG Legal were absolutely fantastic. Extremely responsive and brought calm to our chaotic family situation through their knowledge and caring attitude. Extremely professional from our very first contact with them and they expertly guided our family though the required legal process over almost a 12 month period."

Amanda Williamson

"Fantastic team! They really care about their client. Tim Colcutt is a 'go that extra mile' guy who gives his client his all. I can't recommend HHG and Tim enough."

Kerry Samson

"I had a fantastic lawyer in Anne Hurley. She helped me out a great deal with good, sound advice in a friendly, professional manner. First class, thanks Anne"

Graeme Hammond

"Marine Plant Systems has been working with HHG Legal Group for a few years now and they continually provide first-class service. Their professional advice has been invaluable to our company."

Carolin Grimm - Marine Plant Systems

"We were kept up to date at all times. Pricing was always updated over the time period so we remained "in budget". Personal access to someone whenever I had questions. All in all a great experience without too much fuss."

Rosslyn Tasker - COO AltusQ Pty Ltd

"Good service you can count on."

Miles Lee

"HHG Legal Group has provided outstanding support as I have taken the journey of buying a business, their professionalism is beyond reproach. Their assistance throughout the Due Diligence process has been invaluable, I would fully recommend them."

Mark Armitage

"Very friendly and efficient service - what a pleasure working with Anne."

Jacques Taylor

"I highly recommend Daniel from HHG Legal Mandurah. When dealing with a complicated legal property matter recently I was extremely impressed by Daniel's honesty and integrity and the legal advice I received. I am very happy with the service from HHG Legal."

Tony Walker

Select your location:

Please select your nearest office location so we can show you the most relevant information.