On the point of all rents being affected by a 300% increase – actually, tenants will still only be paying rent at 2015 market levels in 2024. We recognise the social value that many of our tenants bring to Brixton and want to ensure that those businesses that want to return to a refurbished arch are able to do so. We have gone above and beyond the statutory minimum requirements and offered stepped rents phased for five years before being set for two years at market rents (2015 levels) before a rent review in year 7. We believe that this will allow our tenants in the area to benefit from the additional footfall created by a refurbished scheme.
Rents currently average £21 per square foot, the average future rents will be stepped as follows:
· 3 years at half 2015 market rent – average £26.45 per sq ft
· 2 further years at ¾ 2015 market rent – average £39.67 per sq ft
· 2 further years at 2015 market rent – average £52.89 per sq ft
Some existing tenants’ rents have not been reviewed for several years as we planned this project. As a result, some tenants have enjoyed rents substantially lower than others and lower than other nearby rents. The actual increase multiple will vary from tenant to tenant, so those who have had more recent rent agreements will have a lower multiple than a tenant who has enjoyed lower than average rents.