Intu demands late rent from retail tenants

Intu is preparing to take further action against tenants which have not paid their rent and service charges, despite the challenges retailers have faced during the Coronavirus pandemic.

Property Week reported that the shopping centre owner sent a letter to tenants informing them it would “take robust action where rent and service charge payments, contracted under lease obligations” were not paid.

Intu also reportedly stated that while it was sympathetic to the difficulties that its tenants are currently facing, it has its “own binding responsibilities to our funders and investors, as you will understand”.

Last month, Intu stated that it only received 29 per cent of the rent that was due for the latest quarter, compared to 77 per cent a year earlier.

Elsewhere, rival shopping centre owner Hammerson revealed that it had only been paid 37 per cent of the rent that was billed in the UK for the second quarter of the financial year.

After removing rent that has been waived, deferred, or switched to monthly payments, the figure rose to 57 per cent of what was due.

Hammerson - which owns Victoria in Leeds, Highcross in Leicester and the Bullring in Birmingham - stated: “In these circumstances, we believe we should support our occupiers, particularly smaller and independent brands that are less resilient to the closure of their space in our centres.

“We have received a variety of requests for rent deferrals, monthly payments and waivers, which we are reviewing on a case-by-case basis, taking into account the business model and risk profile of the occupier, alongside the aid made available by the relevant governments.”

Meanwhile, retail property business Landsec - which part-owns Bluewater in Kent and Westgate in Oxford - stated that four of its retail outlets and seven of its leisure and retail parks were now closed, while others were only partially operating.

However, as retail only makes up 38 per cent of its portfolio, it has managed to collect 65 per cent of the rent that was due; although this is much lower than the 96 per cent it collected in March last year.

Landsec said it was also establishing a support fund to provide up to £80 million of rent relief for “customers who need our help most to survive”, and where it was unable to offer assistance from this fund, it would consider requests to defer rents.

“Covid-19 means it’s not business as usual,” Landsec said. “But we remain committed to paying our partners and suppliers on time and in full, in line with government best practice guidelines.”

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