Morgan & Clarke were approached by the Tenant of a historic public house overlooking the Thames. The property embraced the traditional and traditional riverside character placing great emphasis on the pub atmosphere which led to its consistent inclusion in the Good Beer Guide.
At rent review, the Tenant wished to exercise their Pubs Code rights and request the MRO option. Morgan & Clarke assisted with the MRO request process and advised as to both tied and free of tie rent.
Morgan & Clarke were instructed to negotiate a free of tie (MRO) rent with Stonegate having provided our client with transparent rent advice, which led to an acceptable rent settlement without the need to resort to Independent Assessment for determination, saving on time and further professional fees.
1. Stonegate Original MRO 'Full Response' - £108,000
2. Morgan & Clarke (Tenant Advice)- £89,500
3. Negotiated settlement - £95,000
Morgan & Clarke were able to negotiate a low-cost, low-risk, free-of-tie (MRO) rent settlement.
The Tenant advised us that as a result, the business profitability on wet sales would likely improve by £70,000 on similar volumes.