Morgan & Clarke were instructed by the Tenant of a West London wet-led public house, in a prominent street position near a busy underground station, to negotiate a rent review on their behalf.
Following an inspection of the property, a rental assessment was undertaken with an in-depth report offering advice and recommendations to the client on how to proceed. A study of the Star Pubs & Bars rent assessment proposal suggested operational costs had not been properly considered with staff wages and utility costs vastly understated. This had the effect of inflating the net profit before rent significantly.
Morgan & Clarke were subsequently instructed to enter negotiations with Star Pubs & Bars.
1. Star Pubs & Bars Rent Assessment Proposal - £80,965
2. Passing Tied Rent - £76,000
3. Negotiated Settlement - £66,250.
Following negotiation and further discussions with Star Pubs & Bars, Morgan & Clarke were successful in securing a negotiated settlement resulting in a 12.8% rent reduction from the passing tied rent (saving approximately £30,000 over the three-year term) and a 33.33% increase in discount concerning Landlord brewed products.
This follows on from a number of positive settlements Morgan & Clarke have overseen in West London adding to our growing list of satisfied clients.
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.