Property expert David Abramson, the managing director of Cedar Dean, has launched a new commercial lease restructuring venture to help tenants negotiate better terms.
Rent Reform, which is understood to be the first company of its kind in the UK, will work closely with landlords and tenants in the leisure sector to help them survive the downturn by arranging more flexible rental terms and more manageable overall costs.
Abramson said: “The economic slump is obviously having a massive impact on restaurants as an increasing number are being forced to shut their doors due to suffocating rental demands. This is having a knock-on effect to commercial landlords who are having to deal with a rise in vacant units and are subsequently being hit by empty rates tax.
"The bottom of the market is still a long way off. It's essential, therefore, that restaurant owners keep a firm eye on the year ahead - banks may have stabilised, but a lack of lending will undoubtedly lead to a decrease in turnover and failing businesses.”
A survey of 1,200 retail and leisure companies carried out by Rent Reform found that 86% would like to see leasing costs significantly reduced to help them cope with the downturn and less than 30% said that they had managed to agree monthly rents.
The poll also showed that more than a quarter of companies had seen sales fall by 15% compared to the same period last year.
Ranjit Mathrani, chairman of Masala World, the Indian restaurant group, welcomed the initiative saying that rents had drastically increased over the last 15 years hitting record levels, which was unsustainable.
“The arrival of the UK’s first rent restructuring specialist is a significant step forward in helping to redress the balance of overpriced rents in under-trading areas.
“I am confident that the pioneering services offered by Rent Reform will result in improved lease terms for restaurant owners, particularly during a period of such severe economic uncertainty,” said Mathrani.
Rent Reforms other directors include Jonathan Kennedy, former associate partner of Knight Frank and Morris Greenberg, head of leisure agency Gilmarc Associates.
