Hi, hopefully this is the correct forum to ask the following question.

In the event of a retail property groups assets being placed on the market, Centro in this case, do any planned store based refurbishments continue or are they required to cease pending the outcome of the processes associated with the eventual sale of said property. The asset is located in Australia.

Primarily, stage 1 of this particular refurbishment involves erecting a wall separating an existing store into half whilst renovations occur in the now vacant portion for example; removal of walls, installing refrigeration units, shop fixtures, electrical wiring, new entrance for the new store, conversion of an existing office into a liquor section and other associated repair works. This also includes the transference of the stores lease to a new tenant, pending completion of stage 1.

The retail center itself is in poor condition requiring considerable works to fix air conditioning which does not work, roof leaks, etc. Whilst the second stage of the process involves more extensive capital works such as the installation of a new entrance passage to the underground car park.

One perspective provided was that due to the aforementioned works taking place "inside" the existing retailers premises, they are able to continue despite the current situation with Centro placing their assets on the market. However, there is concern that legally any works should be placed on-hold until the sale of Centro's properties have been completed

Taking into account the above situation, should action be taken to cease the proposed stage 1 alterations until such time as the future of the center has been secured and the new owners have assessed the properties condition and any refurbishment works which may be required.

Thanks for any information on this issue.