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Fraser and boots annoy landlords in hardball rent negotiations

According to the landlord, Mike Ashley’s retail chain Fraser’s Group and Chemist’s Boots are one of a few tenant groups that have not signed a peace agreement for unpaid rent.

A poll by the British Property Federation showed that the majority of landlords and tenants reached an agreement on what to do with the approximately £ 6 billion of rent debt accumulated during the pandemic.

However, according to the BPF, landlords are dissatisfied with a small number of aggressive tenants who compromise or refuse to compromise.

Fraser and boots are two of the big chains that are still playing hardballs with the landlord, according to people with bargaining knowledge.

“Capitalized companies continue to use the moratorium and are not paying rent at the expense of the local governments, pensions and savings funds that own High Street. BPF CEO Melanie Reach said: It states as follows.

Tensions between landlords and tenants have emerged in recent weeks as the government prepares to withdraw protection for stores, restaurants and leisure businesses on June 30th.

Ministers said they would lift the ban on landlords chasing commercial tenants and ousting them because of unpaid rent incurred during the pandemic. The ban has been in effect since March 2020.

However, they have not yet decided what to replace protection with. The real estate sector is expected to provide guidance within the next week after a decision was made on June 21 to further relax coronavirus restrictions or extend existing measures.

Residents are anxious to return to business as usual after more than a year of heavy coronavirus trading. However, in the last 15 months, many have accumulated considerable rent debt, and there is concern that they may go bankrupt if they repay too early.

UK Retail Consortium Said in may Two-thirds of UK retailers were at risk of taking legal action in at least one store once the ban was lifted.

However, the BPF has counterattacked, claiming that most landlords acted in good faith and reduced transactions with tenants.

BPF surveys more than 16,000 retail, hospitality and leisure real estate leases across the UK and finds that more than three-quarters have agreed on new payment plans, exemptions, rent holidays, postponements and more. did.

According to the BPF, holdouts represent a relatively thin percentage of tenants, about one-seventh, and unpaid rent was estimated at £ 1.84 billion.

Boots “remained open throughout the pandemic to provide pharmacy services to patients in need of us, but the retail footprint of our entire property diminished and transactions were affected. ..

“We have reached an agreement and are paying rent to the majority of landlords. For a fair and impartial solution that enables us to continue to serve our communities, including providing important pharmacy services. Talks with the minority continue as we aim to reach an agreement. “

Fraser did not respond to the request for comment.

Peter Bell, Chief Executive Officer of the Commercial Tenants Association, said: [and] In reality, the landlord does not always sit with the tenant. ”

He said the expectation that the company would trade “as usual” and be able to pay the full amount from June 21st is “a farce.”

Fraser and boots annoy landlords in hardball rent negotiations

Source link Fraser and boots annoy landlords in hardball rent negotiations

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