British Land hails ‘encouraging’ rent collections for September

British Land said that as of October 8, it has collected 69% of rents it was owed for the third quarter.

However, only 50% of rents owed by retailers had been paid, compared to 91% from office tenants.

The total marks an improvement on its second quarter, when only 36% of rents due from retailers in June had been collected during the first week.

British Land said it had remained in “active discussion” with tenants since June, leading to an improvement in rent collections for the second quarter. It has now received 57% of all rents due from retailers for that period.

British Land said it expects rent collections for September to follow a similar pattern and “improve further over the coming weeks”.

The landlord, which owns locations including Meadowhall in Sheffield, added that it is engaging with tenants on a case-by-case basis to aid those who have been “disproportionately affected” by the impacts of the pandemic.

This has included shifts to monthly rent payments, rent deferrals or partial settlement for outstanding debts, in return for extended leases or commitment to additional spaces.

A host of retailers, including Debenhams, New Look, Cath Kidston and Laura Ashley have launched CVAs or plunged into administration this year amid the impact of the coronavirus crisis.

British Land has subsequently seen 16 of its occupiers operating under new terms, impacting 80 units.

Of these, 13 have closed, 62 have now been given reduced rents, and five remain unaffected.

This has resulted in a £11.6m reduction in annualised rents for the landlord.

British Land hailed the performance of its retail park sites since reopening, with like-for-like sales at stores in those locations hitting 90% of last year’s levels during September. Footfall during the month recovered to 89% of 2019 levels.

It said shoppers were “more confident visiting open-air locations they can access by car and where social distancing can be more easily managed”.

The landlord registered “strong performances” from its retail parks at Giltbrook in Nottingham, Mayflower in Basildon and Nugent Park in Orpington.