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Star Pubs & Bars – MRO (Free of Tie) – South Wales

Morgan & Clarke were approached by the Tenant of a well-established public house, situated in the middle of coastal town in South Wales.

Morgan & Clarke were unable to agree on a realistic MRO (free of tie) rent with Star Pubs & Bars or their representative. The parties agreed to refer the matter to an Independent Assessor under the Pubs Code to determine the rent.

1. POB Representative (Landlord Submission) - £82,500

2. Morgan & Clarke (Tenant Submission)- £53,000

3. Independent Assessor Determination - £68,500

4. Passing Tied Rent - £62,500

The MRO (free of tie) rent determined by the Independent Assessor at £68,500 was some £14,000 lower than the original Star Pubs & Bars MRO proposal. This outcome amounts to savings of £70,000 over a five-year period and represents a totally free-of-tie trading operation of just £6,000 per annum greater than the passing tied rent at £62,500.

Our team can help with rent reviews, lease renewals, third-party representation, Pubs Code / MRO, general advice on all lease-related matters, Landlord & Tenant issues or disputes.


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