Morgan & Clarke were unable to agree on a realistic MRO (free of tie) rent with Stonegate and the parties decided to refer the matter to an Independent Assessor under the Pubs Code to determine the rent.
Based on our experience of similar property trading styles, we were able to show that the premises did indeed have potential but not to a level to sustain the rental proposed by Stonegate.
With regard to the property location and in the absence of direct comparable evidence, we placed reliance on the reality of the Tenants accounts and reflected the practicalities of costs looking forwards, not backwards.
1. Original Stonegate MRO Proposal - £73,000
2. Independent Assessment Determination - £46,350
3. Passing Tied Rent - £35,000
The Independent Assessor determined the MRO (free of tie) rent at £46,350 by £26,650 (36.5%) lower than Stonegate’s original MRO rent proposal at £73,000.
Speaking of the successful outcome, David Morgan FRICS (Senior Director) commented:
“We are delighted with the outcome for our client, the result is evidence of our extensive experience and knowledge highlighting the importance of professional representation for Tenants navigating the MRO process.”