Matthew Bordwin, Managing Director and
Co-Group Head of the Real Estate Services team, was quoted in The Wall Street Journal

July 9, 2009

Matthew Bordwin, Managing Director and Co-Group Head of the real estate services team with KPMG Corporate Finance LLC, was quoted in an article, entitled "Empty Mall Stores Trigger Rent Cuts: Remaining Tenants Point to Occupancy Guarantees to Shave Overhead Costs or Escape Leases," in The Wall Street Journal.

In this economy, mall retail stores are looking for any way to save money and cut costs, which includes reviewing their leases and evaluating store closures that may trigger cotenancy clauses. These clauses allow tenants to demand rent reductions, if other key tenants or a specified numbers of stores vacate the shopping center.

According to BanruptcyData.com, at least 27 major retailers last year filed for bankruptcy protection. Many of these chains, including Linens 'n Things Inc., Mervyns LLC, Circuit City and Sharper Image Corp., were liquidated, leaving vacant stores.

"That can trigger cotenancy benefits for other retailers," says Bordwin who represents retailers looking to restructure their leases.

About KPMG Corporate Finance LLC

KPMG Corporate Finance provides a full suite of investment banking and advisory services to its domestic and international clients. Our professionals have the experience and depth of knowledge in global M&A and project finance to advise clients on mergers and acquisitions, sales and divestitures, buy-outs, financings, restructurings, fairness opinions, infrastructure project finance, and other advisory initiatives. In addition, we remain independent of financing sources, helping to ensure that our efforts are objective and aligned with the goals of KPMG’s firms’ clients.

Operating in 62 countries, KPMG’s Corporate Finance practice comprises more than 2,200 professionals who are able to meet the needs of KPMG’s firms’ clients across the globe. In 2008, as a leading financial adviser, KPMG’s Corporate Finance practice completed 390 deals totaling US$51.5 billion, according to Thomson Financial’s global M&A league tables.