Westfield

The sale of a stake in the $900m centre will be a litmus test for the market as big malls are turned into destinations for living and entertainment.

Local Westfield owner the Scentre Group has plunged to a $3.73bn loss after the coronavirus pandemic ripped through its portfolio, which was written down by $4.25bn amid a shift away from malls.

The fight for the future of French company Unibail-Rodamco-Westfield, which took over the international Westfield shopping centre empire in a $32bn deal almost three years ago, is coming to a head at a crucial vote this week.

Local Westfield owner the Scentre Group is reaping more rent from its malls as it recovers from the coronavirus crisis but is still in dispute with about 11% of its retailers over concessions they are seeking to cover the worst of the pandemic.

The major Australian retailer behind well-known fashion brands including Noni B, Katies and Rivers will close 250 stores amid ongoing rental disputes with landlords throughout the coronavirus pandemic.

The prospect of more lockdowns across Australia to control the coronavirus pandemic has prompted a warning from credit agency Moody’s Investors Service that virus flare-ups and weak consumer sentiment are delaying retail sector recovery.

The battle between shopping centre landlords and retailers is entering a new and potentially more dangerous phase as the country’s largest listed retail property company signals it will take a tough line on larger chains refusing to pay rent.

The normally subterranean battle between shopping centre owners and hard-pressed tenants burst into ugly view this week, with much more at stake than the usual tough talk between business rivals.

The powerful property industry has warned that an extension of the Morrison government’s leasing code for small tenants until March next year could see the overall cost of the scheme blow out to about $15bn.