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Mirvac Doubles Payment for Eligible Toombul Shopping Centre Retailers

Some of the embattled shop owners of the flood-ravaged Toombul Shopping Centre will receive a further cash boost after Mirvac announced it will double their payments for eligible small businesses.

Mirvac chief executive Susan Lloyd-Hurwitz said that retailers with an annual turnover of less than $50 million a year will get another three months’ worth of rent payments on top of the three months’ rent payments already promised in June 2022.

Ms Lloyd-Hurwitz said that they have been meeting with these retailers, who communicated their challenging experiences after the February floods that shut down the Toombul Shopping Centre permanently. Mirvac’s decision to terminate the leases placed many of the retailers in debt.

The company determined that it was no longer practical to reinstate the site given its risks of immense flooding. Ms Lloyd-Hurwitz said that the flood caused significant damage to their electricity, electricity, fire and air-conditioning systems, lifts and escalators. Mould has also impacted the shopping centre, which was declared hazardous for people’s health.

Toombul tenants — Meeting with tenants and lawyer Brian Noble
Photo Credit: LeanneLinardMP/Facebook

In June, Cr Adam Allan said that a decision was reached to demolish the existing shopping centre and construct a new one.

“The site is zoned Major Centre zoning under the Brisbane City Plan 2014. This type of zoning provides for a wide range of uses including retail, commercial, residential, entertainment, government, residential care, retirement, and community uses to name some,” Cr Adam sad.

“While Mirvac are only in the early stages of their planning on the future of the site the uses above provide a high level guide of some potential uses.

“There will be some outcomes from the site that Brisbane City Council will be keen to see delivered or retained such as a bus interchange, public space, better connectivity, improved flood resilience, a better interface to Kedron Brook etc

“There will be many discussions between Council’s Development Services team and Mirvac over coming months as their plans for the site are formulated.”

Mirvac Offers Support Package for Toombul Retailers Equivalent to 3 Months’ Rent

Over 100 Toombul retailers are going to receive a support package from Mirvac following its decision to shut down the shopping centre permanently due to flood damage.

Mirvac CEO Susan Lloyd-Hurwitz said that the tenants will be compensated worth three months’ rent, alongside other measures already in place. The company has waived the debts incurred by Toombul retailers during the lockdowns and it has also not charged rent since the February floods.

Tenants have also received assistance with the removal of their fit-outs and stocks as Mirvac plans to demolish the property and rebuild it anew. Mirvac said that they are also in touch with other organizations with free spaces so their former tenants could move in.

The support package is welcome news, after the criticism Mirvac received from the public for their initial announcement of no compensation for tenants. Some retailers have explored legal options in the face of looming financial ruin due to the closure of their businesses at the Toombul Shopping Centre.

Darren Bain, the owner of Function Well, said that their lease has a demolition clause that underscored a “reasonable compensation” but Mirvac said there is another clause stating no compensation for “impracticable or undesirable” repairs.

Prior to the announcement of the support package, Mirvac wasn’t able to attend the scheduled dialogue with the tenants and MPs Anika Wells and Leanne Linard. Ms Wells and Ms Linard have been calling on the property giant to engage with the local community.

Ms Lloyd-Hurwitz said that she has been arranging meetings with the retailers in the coming days and has heard their frustrations.

Ms Lloyd-Hurwitz’s full statement below:

Tenants Still Hoping to Meet With Mirvac Over Planned Demolition of Toombul Shopping Centre

Tenants of Toombul Shopping Centre have expressed disappointment at the cancellation of a requested meeting with Mirvac to discuss previously announced plans to demolish the shopping centre.

The meeting was originally scheduled to take place via Zoom on 7 June 2022. However, not all the Mirvac attendees were available so the meeting did not push through as originally planned

In a statement, MP Leanne Linnard said that she and MP Anika Wells will keep trying to engage with Mirvac for the tenants, who were told that they will not likely receive compensation for losses as a result of the February 2022flood that has rendered the shopping centre too badly damaged.

They have also arranged for the tenants to receive pro bono legal advice on compensation from Brian Noble of Noble Advice. So far, 10 retailers have reached out to discuss the Retail Shop Leases Act.

Prior to the scheduled meeting, Cr Adam Allan stated that Mirvac has decided to completely demolish Toombul Shopping Centre.

“I met with Mirvac executives last week to have an initial discussion about their plans. There will be many discussions between Council’s Development Services team and Mirvac over coming months as their plans for the site are formulated,” Mr Allan said.

“The site is zoned Major Centre zoning under the Brisbane City Plan 2014.

“This type of zoning provides for a wide range of uses including retail, commercial, residential, entertainment, government, residential care, retirement, and community uses to name some.

“While Mirvac are only in the early stages of their planning on the future of the site the uses above provide a high level guide of some potential uses.”

No Rent Collection

Meanwhile, Mirvac said that rents and other expenses were not collected from the traders since the February flood and their debts, including those incurred during the COVID closures, have been waived. The company has also not charged retailers for the cost to de-fit and remove their stocks and store equipment and furniture.

Mirvac also said it has been coordinating with each of the retailers on the ongoing issues at hand.

Some tenants have relocated to other vacant sites in Ascot, Taigum, Stafford, Lutwyche, and Newstead. However, for many locals, Toombul was always the hub where everyone could shop and run errands and where the retailers have become longtime friends.

Toombul Shopping Centre Could Take Up to 8 Months Before It Could Reopen

Photo Credit: Leanne Linard MP / Facebook

Initial assessments of the devastation that the recent flooding has caused at Toombul Shopping Centre revealed that many of the 140 shops could remain closed for six to eight months and the cost of rebuilding may force some tenants to close permanently.

“We can confirm the centre and car park are closed and will remain this way for some time. Our specialist consultants have assessed the damage and the initial assessments show that the inundation has caused extensive damage,” the Mirvac statement posted on social media reads.

“This is the worst flood we have seen at Toombul and the impact is devastating, not only for us, but for all our retailers, many of whom are small business owners. Our priority is working with and supporting all our retailers.”

The rain bomb that battered the city for days has hit Toombul Shopping Centre hard, leaving dozens of shops with mud-ruined equipment and stocks. Toombul retailers say that the recent inundation was different from the 2011 flood in that it is the first time that flood water has penetrated the shopping centre’s ground-floor shops.

Mirvac said that it is too early to ascertain when the centre could reopen but estimates a 24- to 32-week window. However, many small retailers fear that they may not be able to afford the cost of rebuilding considering the extent of damage which could mean that they would need to start from scratch.

Some of these tenants do not have insurance either because of the cost or because no insurer was willing to cover flood risk. Other store owners who do have insurance fear that their insurers might classify the event as a flood, making them unqualified to claim for storm damage.

For now, some traders have reopened on temporary premises whilst major shops had employees deployed to other locations. But the closure of the Toombul Shopping Centre not only impacted shop owners but their loyal customers as well who are now forced to shop elsewhere.

To mitigate the impact on Toombul Shopping Centre customers, particularly the elderly shoppers, Council’s cab services have been adjusted to provide other destination options including Westfield Chermside and Lutwyche Shopping Centre. Customers will be advised of the available alternative at the time of booking.

Toombul Shopping Centre was opened in 1967 by Westfield Group and was Brisbane northside’s largest shopping centre then. Mirvac acquired the centre in 2016 and opened Upstairs Toombul, a new dining precinct anchored by Archie Brothers.