Successful rescue arrangements look set to boost performances of UK landlords
Company voluntary agreements have kept some retailers afloat while others have consolidated, making life easier for property owners
UK property owners are finding some respite despite uncertainty around Brexit and the restructuring of the region’s retail environment. JSE-listed companies such as Intu Properties, Hammerson, Capital & Regional and RDI, which own shopping centres in British cities, have managed to renegotiate leases at higher rentals and in some cases use special agreements known as company voluntary agreements, which have helped to save some of their tenants from closing stores and retrenching staff. Company voluntary agreements are signed between landlords and tenants to avoid companies being liquidated. Landlords are offered more than if the tenant were to enter a terminal insolvency process. Often in terms of these agreements a tenant would pay rent for certain stores and the landlord would receive at least some rent, which was better than not receiving any money at all. There has also been consolidation among some UK retailers and those companies that have left the market and have quickly been...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.