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.