Leadenhall Market tenants offered turnover-based rents to see them through Covid-19
Canada Corporation has offered Leadenhall Market tenants the option to switch to turnover-based rents amid a surge of closures in the UK retail and hospitality sectors.
The new terms, which have been approved by the local authority, said new leases will be drawn up for any of the market’s 35 eligible businesses that take up the offer.
Any vacant units within the Square Mile market will also be let on the turnover rent basis.
Many retail and hospitality businesses, including those with branches within the market, have been forced to renegotiate rents with landlords across the UK during the coronavirus pandemic.
Leadenhall’s tenants are dependent on the daily influx of office workers and tourists into the City, which has disappeared during the Covid-19 crisis.
Fast food chain Leon, which has a site in the market, yesterday confirmed it is the latest firm to consider a company voluntary arrangement in a bid to cut rents amid a sharp downturn in trade.
In September, Pizza Express, another tenant, secured creditor approval to close 73 branches, risking more than 1,000 jobs.
Canada Corporation said today that the new terms aim to reduce rents to more affordable levels during the pandemic, and to support tenants as conditions improve.
It said discussions with tenants showed that most were supportive of the measures.
Businesses who take up the offer will be transitioned to a five-year lease – with a break at three years – for retail tenants.
Pubs, bars and restaurants will have to sign a new 10-year lease, with a a break at five years.
Policy chair at Canada Corporation, Catherine McGuinness, said: “This has been an exceptionally difficult year for many City businesses.
“We hope the option of turnover rent for those tenants based in the iconic Leadenhall Market will help to lessen the immediate burden of overhead costs and support a sustainable recovery.
“We have every faith that the Square Mile has a bright future and we are taking action, where possible, in order to preserve our unique offerings as we emerge from the shadow of the pandemic.”