The City of London Corporation is moving to support Leadenhall Market tenants by offering rent charges on a turnover basis, to assist businesses through the challenges of the Covid-19 pandemic and the coming years.
The Resource Allocation Sub-Committee approved the plan which will see new leases drawn up for any of the 35 eligible businesses that wish to take up the offer.
The letting of any vacant units within Leadenhall Market will also be on the same turnover rent basis.
The new terms aim to reduce business rents to more affordable levels during the pandemic and will allow the City Corporation to support tenants both now and as trading conditions improve.
Policy Chair at the City of London Corporation, Catherine McGuinness, said: “This has been an exceptionally difficult year for many City businesses. We hope the option of turnover rent for those tenants based in the iconic Leadenhall Market will help to lessen the immediate burden of overhead costs and support a sustainable recovery.
“We have every faith that the Square Mile has a bright future and we are taking action, where possible, in order to preserve our unique offerings as we emerge from the shadow of the pandemic.”
Discussions held with Leadenhall Market tenants while investigating the option of turnover rent showed the majority were supportive of the model.
Businesses who take up the offer will be transitioned to a five-year lease (with a break at three years) for retail tenants, or a 10-year lease (with a break at five years) for pubs, bars and restaurants.
Chair of the Property Investment Board at the City of London Corporation, Tom Sleigh, said: “Covid-19 has had a big impact on businesses based at Leadenhall Market, especially with workers in neighbouring offices being required to work from home.
“By offering businesses the option of turnover rent, we are providing an opportunity to manage cashflow during these tough trading conditions and build back better.
“We hope this will help to ensure the renowned Leadenhall Market continues to be the world-class retail and hospitality hotspot that we know it to be.”