Retail landlords 'to cut costs'

Published 07th Apr 2009

Some of the UK's biggest landlords have agreed to a 10 point plan to help retailers reduce costs, the British Property Federation has said.

It follows a trial at four shopping centres which cut costs by up to 20%.

Last month, the British Retail Consortium had warned that the future of more retailers was coming under threat with quarterly rent bills due to be paid.

Some landlords have now agreed to change the way rents are paid from quarterly to monthly.

Many retailers, including Topshop owner Sir Philip Green, have been campaigning for landlords to make changes to rental arrangements.

The plan will focus on issues such as communication between landlords and retailers, and the level of service charges.

Retailers have argued that charges have been too high at a time when they cannot afford it.

British Land, Land Securities, PRUPIM and Westfield were all involved in the pilot scheme.

They have reduced their service charges and will roll out the cuts to other centres in their portfolios.

Other landlords signing up to the scheme include Capital & Regional, Capital Shopping Centres and Legal & General.

"The 10 point plan has been created so that it can be applied in almost any shopping centre to help identify potential savings," Richard Akers, head of retail at Land Securities, said.

Source: ' bbc '

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