UK Retail and Property Executives decide to help each other

Posted under General by Jermaine

The difficult economic environment has brought together a group of retail and property leaders to help each other in coping with the downturn. The group will also cooperate in sustaining employment, service, investment and value to customers. The group consists of the largest property and retail groups of the UK. Property owners in the group include British Land, Aviva Investors, Westfield, Liberty International, PRUPIM, Legal & General and Land securities.

Retailers having three or less than three shops and paying GBP50,000 or less as annual rent to the above mentioned owners would be allowed to pay monthly rent in advance instead of quarterly basis if they agree to direct debit mode of payment.

Hundreds of shops are expected to benefit from this arrangement.

The group of property owners and retailers is also working on reduction of service charges by 20% and giving a share to owners in cost savings. The pilot for this initiative has been constituted: Land Securities at White Rose and Leeds, British Land at Meadowhall, Sheffield and Westfield at Merryhill and PRUPIM and Capital Shopping Centres at Cribbs Causeway. This initiative would help identify best practices to operate malls and retail sites more efficiently.

The group believes that monthly initiative would help retailers in cash flows while service charge reduction would support viability of retail sites and help economic operations.

More