Greenspan expulsion
A statement was issue by the ICEA Lion. It stated that the tenant is struggling to meet its tenant obligations three years before the end of its lease. The REIT manager said it has explored all available options to recover the overdue arrears from the supermarket.
Greenspan expulsion
Tuskys which holds at 12-year lease at Greenspan occupies 48 percent of the mall gross area. The troubled retailer now risks getting expelled from its stores at the Greenspan Mall located in Donholm. This is because of defaulting on rent.
“Tuskys started showing signs of stress as a tenant earlier in the year with regards to the tenant’s obligations. As the REIT Manager, we have been in discussions with them to reach an amicable payment plan and warrant their continued operations at the mall, “noted ICEA. The payment plan has been dishonored by the tenant. In order to cushion the investors, the manager has instituted a process to. recover the arrears using the debt management policy and legal provisions. The REIT manager says it has explored all available options to recover the overdue arrears.
Saanex Auctioneers placed an auction notice of auction that if implemented would see the mall’s landlord auction Tuskys stock on September 22nd. On Friday last week, for instance, Hotpoint Limited filled a court petition to wind up the company_Tusker Mattresses Limited(TML) while auctioneers raided in-store at the Juja City Mall. Tuskys CEO Daniel Githua indicated the retailer was betting on its recent transaction that would inject new capital to stabilize its operations.
The rent faced by the retailer is expected to take a hit at the REIT revenues. Which has taken a hit from the COVID-19 pandemic? In a semi-annual report on June 30. The trust indicates its debt portfolio had grown to Ksh 64.8 million. It further made provisions of Ksh 5.7million for doubtful debts.
The REIT revenues declined by 7.8 percent to Ksh 166.9 million. But booked an increased Ksh.86 million net profit after a higher increase in the fair value of investment properties.