Vicinity Centres, Australia's second-largest shopping mall owner, has launched a $1.4 billion capital raising to prop up a balance sheet battered by falling asset values and rental income during the pandemic.
Chief executive Grant Kelley said Vicinity expects it will have to wipe as 11 per cent to 13 per cent - or $1.8 billion to $2.1 billion - from the value of its portfolio in its June 30 accounts.
Vicinity singled out the government's "stay at home" directives along with mandatory closure of some retail stores.
The closures put pressure on its tenants' capacity to pay rent, with a number of high profile retailers such as Solomon Lew's Premier Investments saying they would not pay rent when their stores were closed.
Vicinity has been negotiating with its smaller tenants over temporary waivers and deferrals of rent in line with a mandatory code introduced by the federal government.