​British Land to shelve rent concessions

British Land has decided to halt rent concessions for its tenants following an uplift in trading across its properties and the extension of the rent moratorium until March 2022.

The property company, one of the UK’s largest commercial landlords has given notice to its tenants that it will stop granting concessions as restrictions continue to be lifted.

British Land, whose portfolio includes Sheffield’s Meadowhall shopping centre, Glasgow Fort and Ealing Broadway in London, said that it was planning to take a firmer line as the vast majority of its customers were now trading well.

The company said it had made “pragmatic and equitable” arrangements during the pandemic, with some tenants paying monthly rather than quarterly, and rental demands being waived entirely in other cases.

“With trading restrictions substantially lifted and the vast majority of our customers trading well and paying the rent due, we do not expect to make further concessions this quarter,” it said yesterday (13 July).

In an operational update to coincide with its AGM, British Land said that across its retail portfolio, footfall and sales were at 86% and 94% of their pre-pandemic levels, respectively, in the seven weeks since the reopening of indoor hospitality in May. Footfall and sales in retail parks up to 96% and 99% of pre-pandemic levels.

The company said it had seen a strong response to the re-opening of indoor hospitality with restaurant sales on its portfolio up 6% of 2019 levels.

Overall 85% of June rent 2021 had been collected to date – 71% from its retail tenants.

Simon Carter, CEO British Land, said: “With lockdown restrictions lifting, we have seen a notable improvement in activity across our markets and our business is performing well. On our retail parks, footfall and sales are close to pre pandemic levels, rents are stabilising with recent deals in line with March ERV and there are indications that retail park values are starting to rise as more investors target the market.”