The matter was referred to Independent Assessment under the Pubs Code to determine the rent as a result of the Landlord’s unwillingness to consider a realistic MRO (free of tie) rent.
1. Punch Original MRO 'Full Response' - £79,999
2. Independent Assessment Submission (Landlord/POB Submission) - £72,750
3. Morgan & Clarke (Tenant Submission)- £51,500
4. Independent Assessment Determination - £54,500
The MRO (free of tie) rent determined by the Independent Assessor represents a totally free of tie trading operation £5,500 less than the passing tied rent. The MRO rent result was precisely - £24,500 (-31.9%) lower than the original MRO ‘full response’ proposal.
Speaking of the successful outcome, Charlie Wright AssocRICS (Associate Director) commented:
“We are very pleased with the determination outcome; in some cases, the free of tie/MRO rental is much nearer to the passing tied rent than the parties might expect. This is one of those examples and we are glad the Independent Assessor took our expert evidence on board in determining the rent”.