Follow @PoliticsIE
 
 
 
Page 1 of 7 12345 ... LastLast
Results 1 to 10 of 69

Thread: Businesses finding ways to beat upward only rent reviews

  1. #1
    Politics.ie Member Fides's Avatar
    Join Date
    Apr 2010
    Posts
    4,441
    Mentioned
    0 Post(s)

    Default Businesses finding ways to beat upward only rent reviews

    Grafton started it when they put Atlantic Homecare into examinership
    Atlantic Homecare survival plan agreed - The Irish Times - Mon, Sep 17, 2012

    Now B&Q are following suit
    Examinership for B&Q Ireland - The Irish Times - Thu, Jan 31, 2013

    It's all about exiting unviable leases and reducing rents in others. I wonder how many more will be following suit?

  2. #2
    Politics.ie Member gerhard dengler's Avatar
    Join Date
    Feb 2011
    Location
    Utopia
    Posts
    47,435
    Mentioned
    2 Post(s)

    Default

    Fine Gael's 2011 Election Manifesto

    Politics.ie moderators should moderate instead.
    Welcome to Political Irish | Political Irish

  3. #3
    Politics.ie Member
    Join Date
    May 2007
    Posts
    1,241
    Mentioned
    0 Post(s)

    Default

    Interesting that "no creditors" were opposed, I wonder if he included the landlords. Having said that, they may have decided better to get the lower rent than have the store shutdown.

  4. #4
    Politics.ie Member Fides's Avatar
    Join Date
    Apr 2010
    Posts
    4,441
    Mentioned
    0 Post(s)

    Default

    Quote Originally Posted by ivnryn View Post
    Interesting that "no creditors" were opposed, I wonder if he included the landlords. Having said that, they may have decided better to get the lower rent than have the store shutdown.
    This is very much targeted at unrealistic rents. B&Q is set up as a separate limited company in Ireland so examinership is an option. Don't think it is an option for a branch (open to correction). Nice to see Landlords over a barrel. Just a pity as gd implies that the government were not at the forefront of this. Lower rents for the likes of B&Q and many others is part of the rebalancing of costs in our expensive little country.

  5. #5
    Politics.ie Member wombat's Avatar
    Join Date
    Jun 2007
    Posts
    31,226
    Mentioned
    2 Post(s)

    Default

    It seems to work for larger companies, I'm not sure it will work for an individual shopkeeper.

  6. #6
    Politics.ie Member Fides's Avatar
    Join Date
    Apr 2010
    Posts
    4,441
    Mentioned
    0 Post(s)

    Default

    Quote Originally Posted by wombat View Post
    It seems to work for larger companies, I'm not sure it will work for an individual shopkeeper.
    I suspect it's not cheap but the payoff for the larger retailer makes it worth it. The difficulty for smaller retailers is there are probably personal guarantees in relation to rent which undoes the limited liability of the business.

  7. #7
    Politics.ie Member gerhard dengler's Avatar
    Join Date
    Feb 2011
    Location
    Utopia
    Posts
    47,435
    Mentioned
    2 Post(s)

    Default

    I'm no supporter of landlords - but it needs to be pointed out that, for example, a lot of pension funds invest their cash in property/land.
    Companies like Irish Life and Aviva will make such investment decisions on the basis of rent return.

    The rent/lease roll from these investments help feed returns for those pension/wealth funds.
    Last edited by gerhard dengler; 31st January 2013 at 11:47 PM.
    Politics.ie moderators should moderate instead.
    Welcome to Political Irish | Political Irish

  8. #8
    Politics.ie Member oggy's Avatar
    Join Date
    Oct 2009
    Posts
    8,955
    Mentioned
    0 Post(s)

    Default

    Did I get it right, B&Q are closing 2 branches and seeking rent downwards reviews for two more. Would actually love to know who exactly are the landlords for the 6 branches they have
    People demonise Fianna Fail and they are entitled to do so but same people are not capable of answering a few awkward questions themselves.

  9. #9
    Politics.ie Member Fides's Avatar
    Join Date
    Apr 2010
    Posts
    4,441
    Mentioned
    0 Post(s)

    Default

    Quote Originally Posted by oggy View Post
    Did I get it right, B&Q are closing 2 branches and seeking rent downwards reviews for two more. Would actually love to know who exactly are the landlords for the 6 branches they have
    They want to close Waterford and Athlone. As GD points out many of the Landlords are pension companies. Rents in Ireland need to come down and it will happen over time. As new leases are issued they will be at lower rents than old ones. Old leases will expire. Most are 20 years these days (used to be 35 years) and many have break clauses. It's a bit like everything else here we keep delaying taking the hits that will eventually have to be taken.

    The knock on effect of closing Athlone and Waterford is competitors will pick up the business of the closed stores so Woodies will benefit there which will help their survival chances.

  10. #10
    Politics.ie Member
    Join Date
    Sep 2012
    Posts
    9,525
    Mentioned
    0 Post(s)

    Default

    Quote Originally Posted by gerhard dengler View Post
    I'm no supporter of landlords - but it needs to be pointed out that, for example, a lot of pension funds invest their cash in property/land.
    Companies like Irish Life and Aviva will make such investment decisions on the basis of rent return.

    The rent/lease roll from these investments help feed returns for those pension/wealth funds.
    That is probably the real reason why the government has not tried to introduce legislation to invalidate those contracts of rent.

Page 1 of 7 12345 ... LastLast

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •