REIT manager, ILAM Fahari I-Reit has instituted a legal process to recover rental arrears owed by Tuskys for its use of Greenspan Mall.
According to a statement from ILAM, Greenspan Mall Limited granted Tusker Mattresses Limited a lease over unit G1 on Ground Floor of Greenspan Mall via a registered lease dated 18th February 2013 for a period of 12 years starting from 1st July 2011.
However, the troubled retailer has fallen back on servicing its lease obligations for months now, forcing the REIT Manager to take action.
“Tuskys started showing signs of distress 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,” said the REIT Manager.
Tuskys has dishonoured the lease agreement’s payment plan. As a result, the REIT manager has instituted a process to recover the arrears as per the debt management policy and legal provisions.
“As the REIT Manager, we have the sacrosanct obligation to protect the interest of the unitholders through efficient management of the assets of the REIT. We have put in place a robust debt management policy, which enables us to review all tenant arrears on a monthly basis and assess whether there is any objective evidence that these are impaired and to take necessary action as per the provisions of the lease and relevant laws,” reads the statement.
ILAM says they have explored all available options in an attempt to reach an amicable payment plan and warrant the continued operations of the retailer at the mall, and will continue to do so in the interest of its shareholders.