FHP INCREASE SLICE OF PIZZA RENT FOR LANDLORD DUE TO IN-HOUSE MARKET KNOWLEDGE

Professional Services News

Acting on behalf of F & C Asset Management, the landlord of 34/35 Long Row, Nottingham, Fisher Hargreaves Proctor has negotiated a new rent of £150,000 per annum with Pizza Hut, who hold the head lease.

The rent review effective from June 2006 is in respect of the whole building although Pizza Hut sublet the basement to Ladbrokes.  The new rent devalues to £115 Zone A.

Mark Bradley of FHP who acted for the landlord said “The initial problem with this review was the lack of any open market rental evidence.  The rent review next door on Schuh was settled at around £110 Zone A and it was only until our agency team successfully let number 27 Long Row at £125 Zone A, albeit 12 months after the Pizza Hut review date, that the true open market rental value of this frontage could be established and I was able to secure agreement at £115 Zone A.  It was due to the fact that I knew a letting of number 27 was imminent that I could hold out and obtain a higher rent on the Pizza Hut review.”