PLC’s pushing small landlords over the edge

by Readers Question

10:27 AM, 25th March 2020
About 2 weeks ago

PLC’s pushing small landlords over the edge

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PLC’s pushing small landlords over the edge

We are a small landlord and few days ago we received a letter from our key commercial tenant who provides our main form of income. This tenant states in their letter they are “an incredibly successful plc , a well capitalised and financed business with a track record of continued growth and profitability.” However the last few weeks have challenged their financial position.

They are “putting forward to all landlords a 3 month/quarterly rent payment holiday. This would compromise a waiver of the rent for that period, not a deferral of payment and that this would not constitute a breach of the lease.”

Their rent is due tomorrow and our commercial loan is due out in 7 days, without the rent we cannot make the payment. We have contacted the bank they can only delay the capital and we still need to make the interest payment, which is still a substantial amount as our loan terms are a fixed percentage plus base rate.

This company is a plc with a gross profit which is millions of pounds and they are saying despite all the government grants, government support for its staff, halt on the business rates they cannot pay us a penny in rent.

Does anyone have any advice?

Zara



Comments

Martin Thomas

15:46 PM, 26th March 2020
About A week ago

I would be firm and say "no deal". They are getting massive help from the government;
- defer VAT submission
- defer tax payments
- no business rates for 12 months
- 80% of staff wages paid where they wish to lay people off
As a successful company, they probably have reasonable cash reserves so they are simply trying it on. Disgraceful behaviour. Name and shame them.

Bilca

7:57 AM, 28th March 2020
About A week ago

Although forfeiture is not currently an option, there is nothing stopping you using CRAR (Commercial Rent Arrears Recovery).

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