29 April 2020
In response to the ongoing COVID-19 pandemic and following consultation with key stakeholders in the commercial property sector, the Australian Government released the Code of Conduct for Commercial Tenancies (Code).
Blackstone Waterhouse acts for major landlords and commercial tenants – from SMEs to institutional clientele – all of whom have been impacted by the Corona Pandemic. Whilst some have been critical of the Code, we consider it reflects a necessarily pragmatic and flexible approach – aimed at taking a less legal and more commercial approach to the resolution of an unprecedented business environment.
There is no one size fits all solution for distressed commercial leases. Each requires consideration of the unique financial circumstances of the parties and a collaborative approach to working towards a mutually acceptable solution – this is not business as usual. Early and open discussions are necessary to avoid insolvencies. The focus needs to be on a pain share aimed at preserving the parties’ commercial relationship.
Read our full update here.