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NPT Limited's Eastgate Shopping Centre Tenancy Update

5 August 2011

 

NPT Limited (NPT) today provided the following update on the status of the Farmers Trading Company (Farmers) tenancy at the Eastgate Shopping Centre in Christchurch (the 'Centre'). The Centre is owned by Eastgate Shopping Centre Limited (Eastgate), a wholly owned subsidiary of NPT.

Background

The Centre sustained some damage in the 22 February 2011 earthquake and was further affected by the 13 June earthquakes. The damage to the Centre was promptly assessed and remedial work undertaken as quickly as possible in the circumstances. This resulted in the Centre being fully open by 27 July 2011.

Farmers Tenancy

Eastgate has remedied the damage within the Farmers tenancy as far as is possible to proceed without the active involvement and co-operation of Farmers.

However, Eastgate has recently received a letter from Farmers in which they have purported to terminate their lease. Eastgate has written to Farmers advising them that Eastgate has received legal advice that Farmers has incorrectly relied on provisions in its lease, and it has no grounds to terminate.

Eastgate has further advised Farmers that it does not accept the termination of the lease, and that Farmers does not have any legal grounds to terminate. Farmers have been told that unless they withdraw their letter, Eastgate will commence legal proceedings, requiring specific performance by Farmers of their lease obligations including their obligation to trade from the Centre.