Healthcare multinational Bupa is threatening a four-month rent strike across its dental outlets, declaring it cannot afford to pay rent during the coronavirus pandemic | ErykBagshaw
Australia's second largest health fund, Bupa, is threatening a four-month rent strike across its dental outlets, declaring it cannot afford to pay any rent to landlords during the coronavirus pandemic.
Franchisees of Australia's largest serviced apartment chain Quest told landlords on Thursday they will not be able to meet rent as occupancy rates plummet to 10 per cent. Solomon Lew's Premier Investments, which owns Just Jeans, Postmans and Jay Jays, is also on a rent strike across the country's shopping centres.
Ms Bugeja said the company had been forced to close stores or restrict trading hours to prevent the further spread of COVID-19 and was focussed on ensuring Bupa had a sustainable business to return to when the crisis is over. "In regard to our lease rent obligations, it is vital that we work collaboratively together with our landlord partners to achieve a temporary rental abatement of 100 per cent gross rent effective from 1 April 2020 to 31 July 2020," she said.The company has 56 dental clinics across NSW, Victoria, Queensland, Tasmania and South Australia.
The national code, which has yet to be legislated by the states and territories, will push landlords to waive and defer lease repayments in proportion to the loss of income experienced by a business. Housing Minister Michael Sukkar has called for at least 50 per cent of the deferred payment to be waived altogether, so that businesses are not saddled with debt after the crisis, but there is no government guarantee on this lost income for landlords or on money owed if the tenant goes bankrupt.
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