Brakspear announces RPI-linked rent reductions

By Becky Paskin

- Last updated on GMT

Related tags: Commerce, Landlord

The pub company has announced it will follow the negative retail price index into negative growth to reduce rent payments for tenants

Brakspear Pub Company​ is giving their tenants a break from the recession by announcing a decision to follow the retail price index (RPI)  if it falls into negative growth.

The move will benefit a third of Brakspear tenants, around 50, who follow an annual RPI-linked rent agreement by reducing the amount of rent they pay. The plan is designed to support tenants to build a ‘long-term business’ rather than focusing on ‘short term gains.’

Brakspear’s commercial director, Tom Davies, said that despite being under no obligation to match RPIs, the pubco’s decision was a ‘way to help’ their tenants through the recession.

“We are acutely aware of the tough trading environment faced by many of our tenants at the moment,” he said. “Passing on the financial benefit of falling RPI to our tenants through their rent payments is one way of supporting them, so they can come through with their business in good shape to benefit from the upturn, when it happens.”

Brakspear runs 147 tenanted pubs, most of which are food-led establishments in the southeast.

 

Related topics: Business & Legislation

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