Intu threatens to serve statutory demands as tenants refuse to pay quarterly rent
Property giant Intu has suggested it is prepared to take further action against tenants who don’t pay rent and service charges they currently owe.
According to a report from Property Week, the company sent a letter to tenants saying that it would “take robust action where rent and service charge payments, contracted under lease obligations” aren’t paid soon.
The letter states: “We remain sympathetic to the situation and the difficulties our customers face, but we have our own binding responsibilities to our funders and investors, as you will understand.”
The company noted that when the Government introduced its temporary ban on evictions of commercial tenants during the Coronavirus pandemic, and would actively monitor the impact on landlords’ cashflow.
Businesses that have received a statutory demand have three weeks to reach an agreement for payment.
Intu issued a statement last week, citing that UK rents for the second quarter was due on March 25 and that only 29% of these have been received, compared to 77% this time last year.
The property giant is seeking emergency support from its lenders and the UK government, as the company has been under immense pressure before the Covid-19 outbreak.
Recently, Intu feared a potential collapse after the business announced its annual losses nearly doubled to £2 billion in 2019, due to a big decrease in the value of its shopping centres.
In addition, the business carries a huge debt load as it was forced to abandon plans to raise up to £1.5 billion to pay down its debt pile.