Client: Pizza Express - Bishopsgate
Pizza Express’s unit on Bishopsgate is very well located, opposite Liverpool Street station and one of a few locations in the City which trades well both during weekdays and on weekends.
At its latest rent review, the landlord proposed more than £140,000 uplift in the rent. Our landlord and tenant experts negotiated the review on Pizza Express’s behalf.
The solution
Although the terms of the lease restricted the use to a restaurant, the landlord’s agent argued it should be valued in line with the prevailing Zone A’s agreed in transactions on retail units in Bishopsgate. We argued it should be valued using the overall approach used on restaurants nearby. In addition, the property had to be valued with the layout it had when the lease was granted, which provided no access between the ground and first floors - the landlord did not take this into account. Finally, as the property was a converted bank the configuration of the basement was poor as the strong room was still in place. This made it unsuitable for sales purposes.
The landlord’s agent rejected our arguments so the review proceeded to third party and was determined by an arbitrator.
Result
The arbitrator accepted all of our arguments, and determined a nil increase in rent, translating into a saving of £700,000 over five years for Pizza Express.
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