The City of London Corporation has agreed to defer one quarter’s rent for a range of businesses struggling as a result of the Covid-19 outbreak.
The move – which applies to directly managed premises and full repairing insuring leases – will enable tenants to defer rent applicable to either the March 2020 quarter or the June 2020 quarter, provided they belong to one of the following categories:
- All retail tenants with the exception of supermarkets, pharmacies, banks and building societies;
- All leisure tenants;
- All food and beverage tenants;
- Serviced office tenants;
- Certain small office tenants.
Tenants will be allowed to repay the deferred quarter’s rent over 12 months from the end of September 2020 to end of September 2021. No late interest will be charged.
These measures will be reviewed at the City Corporation’s next Property Investment Board on 26th May 2020 and at the end of June 2020.
Catherine McGuinness, policy chair at the City of London Corporation, said: “We recognise that many businesses based in the Square Mile are facing almost impossible trading conditions as a result of the current Covid-19 outbreak. It is only right that we stand by these tenants by offering much-needed rental relief.”
These moves come after the property investment board last week agreed to change rental payments for the March to June quarter to monthly billing for directly managed premises, in order to help cashflow for smaller business tenants.
Jeremy Mayhew, chairman of the City of London Corporation’s finance committee, said: “In these testing times, it is vital that those businesses facing real difficulties are supported. These measures demonstrate our commitment to working with tenants to offer well-targeted support.”
Tom Sleigh, chair of the property investment board, added: “As the landlord of many tenants who are now struggling, my Board acted quickly to provide some immediate cash flow relief. I now call on all responsible landlords in the Square Mile and beyond to enact similar measures.”