Brixton property developers Lexadon: Gerry Knight fined £175k under Proceeds of Crime Act

[cuppa tee]

But what's the term? Is it fixed for ten years, or will it go up each year?

If they've had no rent rise for the ten years of their lease, then a massive rise is to be expected. If they usually agree an inflationary rise each year, and were expecting the same agian this year, then a 156% rise is shocking.

The way it's reported at the moment, it's hard to know which it is.

your optimism is heartening to see in todays world, but the cynic in me sees jed as a few things, ...a philanthropic supporter of local grass roots music scene is not one of them.

 

[Tulster218]

your optimism is heartening to see in todays world, but the cynic in me sees jed as a few things, ...a philanthropic supporter of local grass roots music scene is not one of them.

You've missunderstood me. I haven't mentioned optimism or philanthropy at all.

I suggested that a likely explanation for the increase is that their ten-year-lease came to an end, and a new ten-year-lease is being negotiated. If the previous and proposed leases are for ten years at a time then the increase is in line with inflation.

Without those basic details we can't know if this rent rise is reasonable or not.

 

[Gramsci]

Thats ok then. As long as its a certain type of big increase that is "reasonable"

The logic on from that is that if the music studio is not longer financially viable with a "reasonable" rent increase then oh well that's unfortunate but that's life.

I have to laugh

 

[cuppa tee]

You've missunderstood me. I haven't mentioned optimism or philanthropy at all.

I suggested that a likely explanation for the increase is that their ten-year-lease came to an end, and a new ten-year-lease is being negotiated. If the previous and proposed leases are for ten years at a time then the increase is in line with inflation.

Without those basic details we can't know if this rent rise is reasonable or not.

...maybe you are unaware of the reputation of the gentleman in question, i'd say its optimistic to imagine theres anything reasonable about this rent rise. unless he's been misrepresented over the decades his sole motivation in business is amassing a huge personal fortune. where you and i might see a rehearsal studio he's probably seeing a new build packed with young professionals all paying premium rents, so up goes the rent... studios close....bingo.

 

[domestos]

But what's the term? Is it fixed for ten years, or will it go up each year?

If they've had no rent rise for the ten years of their lease, then a massive rise is to be expected. If they usually agree an inflationary rise each year, and were expecting the same agian this year, then a 156% rise is shocking.

The way it's reported at the moment, it's hard to know which it is.

I take it you aren't aware of the Knights/Lexadon's practices. The love of money,,,,,

 

[editor]

But what's the term? Is it fixed for ten years, or will it go up each year?

If they've had no rent rise for the ten years of their lease, then a massive rise is to be expected. If they usually agree an inflationary rise each year, and were expecting the same agian this year, then a 156% rise is shocking.

The way it's reported at the moment, it's hard to know which it is.

Go find out for yourself if it's so fucking important to you.

All that matters to me is that another important part of Brixton's culture is being priced out of existence by a predatory property development company run by a multi-multi millionaire who doesn't give a flying fuck about anything but fat profit.

Fuck Lexadon. They give nothing back to Brixton.

 

[cuppa tee]

Go find out for yourself if it's so fucking important to you.

All that matters to me is that another important part of Brixton's culture is being priced out of existence by a predatory property development company run by a multi-multi millionaire who doesn't give a flying fuck about anything but fat profit.

Fuck Lexadon. They give nothing back to Brixton.

....well he did up brewdogs rent so we got an empty premises.

 

[editor]

They've just taken over The Quadrangle (they can't even spell it right on their page, FFS) and I'm already hearing that long term residents will soon be forced to move out.

The Qaudrangle

www.lexadon.co.uk

 

[Tulster218]

Go find out for yourself if it's so fucking important to you.

All that matters to me is that another important part of Brixton's culture is being priced out of existence by a predatory property development company run by a multi-multi millionaire who doesn't give a flying fuck about anything but fat profit.

Fuck Lexadon. They give nothing back to Brixton.

I've been very polite to you, and I've explained that it seems likely that you've got the maths wrong. You seem to have been cynicaly exploited by this recording studio business to their own ends. They've given you part of the story, but without the other part the "extortionate rent increase" claim is meaningless. I see that their change.org petition doesn't give a figure for the increase. There's probably a good reason for that.

Telling me to do your fact checking for you is unreasonable.

I think journalistic integrity matters. I think you should try to be more than a GBNews for left-wing people.

 

[Gramsci]

Notice not a peep of criticism of Lexadon. But the recording studio business are referred to as "cynical" exploiters. Strong language making out they are about themselves and don't give a shit about anyone else.

Well done for trying to turn the argument around to make out that those at sharp end of rent rises are the exploiters not landlords.

Says everything about where you are coming from.

 

[CH1]

They've just taken over The Quadrangle (they can't even spell it right on their page, FFS) and I'm already hearing that long term residents will soon be forced to move out.

The Qaudrangle

www.lexadon.co.uk

Gerry Knight seems to have similar preoccupations as Tim Martin (in terms of delighting in local history). Unfortunately he doesn't follow Mr Martin's aspirations to be a "cheapie".

 

[editor]

I've been very polite to you, and I've explained that it seems likely that you've got the maths wrong.

Then go right ahead and prove it.

One thing that is inescapable is that Lexadon are directly and solely responsible for Brixton losing an important part of its musical infrastructure just so they can rake it even more profit for themselves and their multi millionaire boss.

Like I said before, they don't give a shit about Brixton or its culture, despite it being one of the things that helps them flog their properties,

All they care about is exploiting Brixton for profit while giving nothing back. That probably makes them go-getting capitalist heroes in your book but it makes them ruthless cunts in mine

 

[gilchristondrum]

I've been very polite to you, and I've explained that it seems likely that you've got the maths wrong. You seem to have been cynicaly exploited by this recording studio business to their own ends. They've given you part of the story, but without the other part the "extortionate rent increase" claim is meaningless. I see that their change.org petition doesn't give a figure for the increase. There's probably a good reason for that.

Telling me to do your fact checking for you is unreasonable.

I think journalistic integrity matters. I think you should try to be more than a GBNews for left-wing people.

If I may interject here local rents for similar properties are between £14 and £18 per square foot. The £22.50 that is being asked is £4 more per square foot than is being asked for the other empty Lexadon unit on the same estate. The studio are not expecting a rent freeze, they are not expecting a small increment. Inflation dictates a 3-5% year on year rent rise as advised by the government. The studio offered above this amount and asked for a stay of execution for one year. The studio is not been able to offer the market rent. Hope this helps to give you a little more of an idea. Lexadon have not been willing to negotiate or give the studio enough time to relocate despite asking in September for a decision.

It’s worth beating in mind that every time people feel the pinch when cafes, pubs, local facilities and shops stick up their prices it’s usually in response to rising rent.

A year from now it may have been a different situation. But we are all still recovering from the pandemic not mention the continuing energy crisis.

Many thanks.

 

[DaphneM]

It's an interesting article, but is this a 156% rise year-on-year or is it a new ten year lease with a 156% rise from a previous 10 year lease? Without that context the story is meaningless.

If they had a ten year lease, and are now negotiating a new ten year lease, then that uplift is approximately in line with inflation.

126 Brixton Hill, London, SW2 1RS - Tuckerman

tuckerman.co.uk

looks about the same size for £56k/year , if they were only paying £20k before they had a good deal

funnily enough the same unit appears on right move for £16k cheaper!

Check out this Light industrial facility to lease on Rightmove

Light industrial facility to lease in 126 Brixton Hill, London, SW2 1RS, SW2 for £3,333 pcm. Marketed by USP London, USP London

www.rightmove.co.uk

 

[gilchristondrum]

Z

 

[gilchristondrum]

126 Brixton Hill, London, SW2 1RS - Tuckerman

tuckerman.co.uk

looks about the same size for £56k/year , if they were only paying £20k before they had a good deal

funnily enough the same unit appears on right move for £16k cheaper!

Check out this Light industrial facility to lease on Rightmove

Light industrial facility to lease in 126 Brixton Hill, London, SW2 1RS, SW2 for £3,333 pcm. Marketed by USP London, USP London

www.rightmove.co.uk

£24k per year. That’s unit 2. Studio is unit 1. Much more reasonable rent. Proposed rent is £22.50 rather than £18.50 per square foot.

 

[Gramsci]

Small business are having to deal with rising electricity costs and other overheads.

Landlords can just up rent as long as it supposedly "reasonable". They don't have this to deal with.

Based on fact that they own an asset.

As with private renters there is a power difference between small business/ private renters and the landlord class.

Arguments about whether Brixton Buzz is good journalism or getting bogged down in arguing about details are really to try to obscure this fact of life for those who rent.

I know several small business and over years having to renew leases is always a worry. Whether this will lead to end of viability of the business.

 

[DaphneM]

It's an interesting article, but is this a 156% rise year-on-year or is it a new ten year lease with a 156% rise from a previous 10 year lease? Without that context the story is meaningless.

If they had a ten year lease, and are now negotiating a new ten year lease, then that uplift is approximately in line with inflation.

Found some more info...

A spokesman for Lexadon said: “Lexadon Property Group (LPG) purchased the site at 126 Brixton Hill in June 2016.

“At the time of the purchase they were all leased to tenants including Brixton Hill Studios (BHS) at Unit 1. The lease for Unit 1 BHS commenced in September 2013 and expires in September 2023.

“There is no right to renew within the terms of the lease. LPG instructed professional commercial agents to commence rent negotiations with the tenant in March 2023.

“BHS were then advised of the current market rents for similar units in the area as well as other units that are currently let at the site.

“LPG are happy to agree terms with BHS but it must be at the current market rent and similar to the other units occupying the site.

 

[Tulster218]

Found some more info...

A spokesman for Lexadon said: “Lexadon Property Group (LPG) purchased the site at 126 Brixton Hill in June 2016.

“At the time of the purchase they were all leased to tenants including Brixton Hill Studios (BHS) at Unit 1. The lease for Unit 1 BHS commenced in September 2013 and expires in September 2023.

“There is no right to renew within the terms of the lease. LPG instructed professional commercial agents to commence rent negotiations with the tenant in March 2023.

“BHS were then advised of the current market rents for similar units in the area as well as other units that are currently let at the site.

“LPG are happy to agree terms with BHS but it must be at the current market rent and similar to the other units occupying the site.

I guessed as much.

This confirms the lease was ten years, so the 156% "annual rise" figure is misleading.

Lexadon has given Brixton Hill Studios a low rent over the last ten years, and instead of being grateful they've kicked off on social media. Good luck to them finding a new landlord willing to support them.

DaphneM please could you tell editor where you got this from - he was looking for some proof that his Brixton Buzz story contained factual errors.

 

[Gramsci]

"low rent"

"reasonable" rent increases.

Good to see posters here sticking up for landlords.

Sickening to see this on this forum

 

[Gramsci]

The quote from post 108 is very selective quote from SLP article.

‘Ripping the culture out of Brixton’: Music studios set to close as landlord demands £32K rent rise

 

[Gramsci]

Article in SLP also quotes the local MP who is now supporting the music studios

Bell Ribeiro-Addy, MP for Streatham, visited the space recently and has thrown her support behind keeping it in the hands of Brixton Hill Studios.

Ms Ribeiro-Addy told the South London Press: “I’ve already received dozens of emails from people saddened by the impending closure of Brixton Hill Studios and worried about the impact this will have on our vibrant local music scene.

“Losing this space would be a real blow to all the local musicians and artists that rely on it.

“In an ideal world, Lexadon would rethink this extortionate rent increase, but at the very least, they should extend the lease to give Stephen and the team ample time to relocate and rebuild.”

 

[Gramsci]

Perhaps posters here so concerned about quality of local journalism could email the MP to tell her Lexadon are being "reasonable"

That her saying its "extortionate" is wrong.

 

[DaphneM]

I guessed as much.

This confirms the lease was ten years, so the 156% "annual rise" figure is misleading.

Lexadon has given Brixton Hill Studios a low rent over the last ten years, and instead of being grateful they've kicked off on social media. Good luck to them finding a new landlord willing to support them.

DaphneM please could you tell editor where you got this from - he was looking for some proof that his Brixton Buzz story contained factual errors.

Here you go

‘Ripping the culture out of Brixton’: Music studios set to close as landlord demands £32K rent rise

To renew their lease they would need to pay 133 per cent more in rent.

londonnewsonline.co.uk

From what I can see commercial warehouse rents are around that price per square foot for this location. It is unfortunate for them but it is something they could have seen coming - the lease was coming to an end and whoever owns it isn't going to charge less than market rates tbh.

 

[Gramsci]

Nice to see here such understanding of landlords.

 

[Gramsci]

Seems to me the other news outlets quoted here aren't doing much different from Brixton Buzz.

 

[Gramsci]

I guessed as much.

This confirms the lease was ten years, so the 156% "annual rise" figure is misleading.

Lexadon has given Brixton Hill Studios a low rent over the last ten years, and instead of being grateful they've kicked off on social media. Good luck to them finding a new landlord willing to support them.

DaphneM please could you tell editor where you got this from - he was looking for some proof that his Brixton Buzz story contained factual errors.

Sorry but why should they be "grateful"?

Your siding with landlords is nauseating.

And "support them"?

This says volumes about where you are coming from.

Seems to me that local MP and local residents who have been emailing her see the social value of an enterprise such as this.

Social value is distinct from market value.

 

[Gramsci]

The argument that the music studios should have seen this coming. As they were not paying "market" value is ideological in itself.

It is treating market value as neutral category.

So those like editor Brixton Buzz "kicking off" about this can be portrayed as bad journalism and not that rational. An emotive response.

The "facts" demonstrate that the "market" means they were paying low rent so it must go up. So this is not the fault of the landlord. Its the market that assigns the correct value.

Small business should plan for this is the logic of this argument.

This support of the market is as ideological as it comes.

 

[Gramsci]

The ever hard working local MP Bell Ribeiro Addy posts on her website her support for the music studio

She is such a good MP

Bell's Regular Newsletter - 10th June - Bell Ribeiro-Addy

Your Latest Update from your Local MP (10th June 2023)

bellribeiroaddy.com

I recently had the pleasure of visiting Brixton Hill Studios. Over the last decade, the team running the studio have turned this space into a real hub for local musicians, providing them with affordable recording and rehearsal spaces. I was therefore saddened to hear that their landlord is proposing an 136% rental increase when their lease expires in September. By the look of things, so are a lot of people living in our area, who wrote to me to express their concern over the announcement of its closure.

This week, I wrote to the Studios’ landlord, Lexadon Property Group urging them to rethink the rent rise, or, failing that, to extend the lease and give them time to find new premises. After a decade of giving so much to our local music community, this is the least they deserve. We should be really proud of the creative scene in our constituency and do all we can to protect it. I will continue to work closely with local venues, artists, and creatives to push for the support our live performing arts scenes needs to survive and thrive.

 

[editor]

I guessed as much.

This confirms the lease was ten years, so the 156% "annual rise" figure is misleading.

Lexadon has given Brixton Hill Studios a low rent over the last ten years, and instead of being grateful they've kicked off on social media. Good luck to them finding a new landlord willing to support them.

DaphneM please could you tell editor where you got this from - he was looking for some proof that his Brixton Buzz story contained factual errors.

"Grateful"? Were they making a loss or something and doing it out of the goodness of their hearts?

They were just waiting for the moment they could maximise their already overflowing profits and make more even money for themselves - and have rampant Toryboys like you cheering them on.