Retail Industry heavyweights pushing up for rent reform

Posted under General by Michael

Retail industry led by Lord Harris and Sir Philip Green would take up the issue of wide-ranging rent reforms with the landlords in the month of September. The retailers are facing big financial constraints owing to the consumer downturn, and in order to mange cash flows want landlords to adopt monthly payment practice of property costs instead of existing quarterly advance payment.

All the retailers are demanding lowering of service charges and review of lease structure. The property sector is worried over the ongoing agitation and apprehends that acceptance of retailers’ demand would provoke other tenants to demand similar concessions.

Carpetright chairman Lord Harris, Arcadia owner Philip Green and a few retailers would hold talks with some of the landlords during the next four weeks. According to Lord Harris, the talks would also cover issues like service charges and introduction of 10-year lease on the European pattern.

The demand for offering monthly rents as the standard best practice is also voiced by the stronger store chains. Stephen Robertson, director-general British Retail Consortium, in his letter to the British Property Federation has urged adoption of monthly payment and reiterated BRC’s support to the proposed negotiations.

British Property Federation (BPF) members are ready to consider monthly payment in the new lease negotiations. Liz Peace, the BPF chief executive, insists that landlords would like to help tenants that are genuinely in trouble.

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