Client: KFC
The former Burtons store in central Reading is now occupied - by way of an assignment from Arcadia - by our client, KFC.
On receipt of budgeting advice from another agent that its rent review would result in a 67% uplift in rental payments, they appointed our retail experts to negotiate with the head lessee.
The solution
We pursued two key arguments when negotiating this review. Firstly, the nearby Oracle Shopping Centre had drawn trade away from this part of the city centre, altering the type of retailer attracted to the location. Our second point was that the unit itself was very large, yet only the ground, basement and first floors could be used for trading purposes, with the second floor ancillary to requirements. Under the terms of the lease, no accommodation could be sub-let to other occupiers.
Results
Following negotiations with the head lessee’s agent, the review was settled at £206,500 per annum, saving our client £217,500 over five years from the head lessee’s original offer to settle.
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