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Source: Victory Offices
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  • Victory Offices (VOL) is locked out of three of its flexible workplace hubs in a dispute over unpaid rent
  • Lockouts have been imposed by the landlord, AMP Capital, across one premise in Sydney and two in Melbourne
  • Roberts Frays has been appointed to deal with the rental dispute
  • Victory has been in the doldrums since COVID-19 hit, with the pandemic slicing off roughly $20 million from its revenue
  • VOL’s share price has bottomed out since reaching heights of $2.43 in October 2019 after an initial public offering of $2 — shares last traded at just 17 cents

Flexible workspace provider Victory Offices (VOL) have been locked out of three of its locations in a dispute over unpaid rent.

Lockouts have been imposed by the landlord across one premise in Sydney and two in Melbourne due to what is alleged by the landlord as unpaid rent, outgoings contribution and cleaning contribution by Victory.

The dispute with AMP Capital concerning COVID relief on three of its operating locations is being handled by Robert Gray Lawyers, who have found themselves locked out of their workspace in Melbourne.

The company said in a statement that the lockouts have had a significant impact on tenants who use the workspaces.

Action is being taken to ensure all tenants are supported, the company said, with alternative office spaces being sourced for existing tenants.

Victory has been in the doldrums since COVID-19 hit, with the pandemic slicing off roughly $20 million from its revenue.

The company reported revenue from flexible workspaces of $26.5 million in H1 20, a number that fell to $6.6 million in H1 21, suffering a underlying net loss of $14.1 million after-tax.

VOL’s share price has bottomed out since reaching heights of $2.43 in October 2019 after an initial public offering of $2, shares are now just 17 cents.

“The company has acted in good faith in discussions and negotiations with the landlord,” the company said in a statement to the market.

“Victory Offices remains committed to building shareholder value and the strategy of divesting itself of sites that are not profitable, retaining sites that are profitable and acquiring sites that are highly likely to be profitable.”

Victory Offices reported that the five leases in negotiation to be surrendered, three leases that have been successfully negotiated are to be surrendered, however the documentation is yet to be finalised. The remaining two leases are still under negotiation.

The company is trading at 17 cents in a trading halt.

VOL by the numbers
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