ESR-Reit recovers around 75% of outstanding arrears from Australia rent default
A tenant defaulted on rent payments in August, resulting in arrears of A$12.2 million
ESR-Reit, a real estate investment trust, has managed to recover approximately 75% of the outstanding arrears stemming from a rental default by ACFS Port Logistics in Australia. The default occurred in August, resulting in A$12.2 million in arrears. Through the partial utilization of the banker's guarantees held by ESR-Reit, the outstanding arrears have decreased to around A$3 million (US$2.1 million).
In September, the outstanding guarantees stood at A$400,000. ESR-Reit has also received all rent payments due since August 13, and anticipates continued rent payments from the tenant. The company has sent breach notices to ACFS, requesting the replacement of the guarantees, as per the lease terms, and plans to pursue further recovery options for the remaining balance of the outstanding arrears.
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