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Volume 10, Wednesday, January 23, 2013
Central Traders Unite Local traders fed up with low retail and high rents L
By Millie Thomas
easeholders in Roxby Central are becoming increasingly unhappy with unwavering commercial rent rates amidst a declining local retail and real estate market, reports have revealed. According to Roxby Central Traders Chairperson Leigh Malcolm, retailers have seen a sharp downturn in trade, with some shop revenues falling as much as 30 per cent compared to corresponding periods from last year. “Because BHP (sic)decided not to go ahead with the expansion, there’s been quite a dramatic downturn in trade,” Mr Malcolm said. The news comes following the closure of Simon’s Pizzeria on Richardson Place last week, and long standing business Desert Décor late last year. “Traders are anxious that they’re not going to be able to keep up, they’re falling behind,” Mr Malcolm said. “Quite a few of
the traders are behind already in their rent, which is not good.” Numerous failed negotiations with property managers Savills Property Management has now forced lease holders to look at hiring a lease negotiator. “It doesn’t appear that the landlords want to negotiate,” Mr Malcolm said. To Mr Malcolm’s memory, a Savills representative hadn’t visited the mall since November 2012, and had presented an unresponsive front to leaseholders concerns. “They’re conspicuous by their absence to say the least. They’ve been very ineffective really. “Now the time has come as a group, we need to get cohesive, stick together and try and negotiate a better deal for all of us.” Robert O’Loughlin from Pie R Squared said businesses were left chasing their tail. “Rent is too dear. It’s quieter than it’s ever been, especially with what’s happening at the mine at the moment. “It doesn’t help looking for money each month, it’s only getting harder and harder.”
“And it’s every shop, we’re all fighting.” Mr Malcolm said the obvious drop in residential rates should correspond with the local commercial market. “I think the landlords, if they’re not careful; will end up with a shopping centre that is empty. “Surely it’s better to have three quarters of a sandwich than no sandwich at all. “If there are no shops and services here, people won’t come and live here. So other businesses will find it hard to attract staff. “Because at the moment it’s probably touch and go whether it’s viable or not in Roxby.” Mr Malcolm told The Monitor in light of any upcoming lease renewals he would be advising shop owners to be proactive and would recommend employing a professional to negotiate on their behalf for the best possible outcome. A representative from Savills stated, “Retail in general throughout Australia is suffering and this is not isolated to Roxby Downs. We look forward to a prosperous 2013 and for an increase in consumer confidence.”
Let’s Celebrate - find out more about local Australia Day celebrations on Page 4
Opal Hotel to close – but not forever T
“It’s a disaster. This is a worst case scenario Mr Matthews said without overflow accomIn the meantime, Andamooka Opal Hotel SA By Millie Thomas opportunities from Roxby Downs for us,” Mr Matthews stated. Pty Ltd is open to local leasing opportunities. he Andamooka Opal Hotel will close modation and the camps, the hotel was not profitable. However this is not the end for the iconic “One option we’re exploring is leasing the following normal business hours on “We don’t want to be closing, we haven’t outback hotel. business on a short term basis. If somebody Australia Day this Saturday. taken the decision lightly,” Mr Matthews said. A caretaker has been appointed to look after comes along with a proposition that makes
However, the decision is not permanent, with Andamooka Opal Hotel SA Pty Ltd Director Brett Matthews applying only a temporary suspension to the hotel’s license. The decision came after BHP Billiton’s decision not to go forward with the expansion of Olympic Dam last August, and the cancellation of a years’ worth of booked accommodation at The Opal in July last year. Major trade for The Opal relied on accommodating temporary mine workers when accommodation in Roxby Downs and worker’s camps had no vacancy.
“Given BHP's (sic) situation this year there’s not much opportunity to trade.” The final decision was made around Christmas time last year after mounting speculation by locals and local media. “Trading just got quieter and quieter,” Mr Matthews explained. “There’s a lot less people in the town, there’s people moving out of the town currently and there were more houses released in Roxby.” The higher vacancy rate in the Roxby Downs real estate market was a large contributor to declining trade.
the premises, which will continue to run with water, electricity and gas as normal. Should business pick up in the area, Mr Matthews said the license suspension could be lifted with only 30 days’ notice. “We’re mothballing it for want of a better word,” he said. “It will still be a functioning property, we’re not disconnecting anything. Well open as soon as possible as soon as the business is there.” Mr Matthews is also hoping to extend plan approvals that would have seen 120 new rooms added to The Opal.
sense we’ll look at it.” At the end of the day there’s no hard feelings from Andamooka Opal Hotel SA Pty Ltd, they’re just looking forward to the next opportunity Andamooka presents. “We’ve had good relationship with BHP, they’re a great business partner and we’ve enjoyed dealing with them,” Mr Matthews said. “It’s clearly not the fault of anyone locally.” “We’re not precious about that, it’s a business decision.”