London landlord Grosvenor 'will invest in selected tenants'
Retail landlords have come under huge pressure in recent years and 2020 has been even worse with a Moody’s Analytics report this week saying that UK landlords are under more pressure than those in Europe due to the strength of online sales in Britain. But that hasn’t stopped some landlords from introducing initiatives to support their equally-under-pressure tenants. And on Friday, Grosvenor announced an unusual new programme of support for its tenants in Mayfair and Belgravia.
Grosvenor Britain & Ireland said it’s “looking to selectively invest in tenants to help them pivot their businesses and grow post-pandemic”.
The company has around 500 retail/food & beverage tenants in the upscale area of London and while they’re frequently selling high-end products, it doesn’t mean their businesses are in a healthy state, despite them being viable in more 'normal' times. That’s because footfall to central London remains historically low as tourists and office workers stay away.
Grosvenor said around two-thirds of those retail tenants are independent or smaller businesses.
Since April, it has already waived rent for many of them and now it said that by “investing selectively in tenants with new business ideas, and sound diversification and growth strategies, Grosvenor is taking a confident, long-term view on the success of Central London at a time when the market is at its most uncertain”.
Grosvenor Britain & Ireland CEO James Raynor said: “We have many tenants with exciting ideas to pivot and grow their business, but which require capital to push their strategies forward.
“By backing tenants we’re trying to rewrite what it means to be a landlord, creating partnerships where each side is genuinely invested in the others’ success. Through long-term investments we can help these businesses adapt their strategy and grow.”
It hasn’t commented on specific talks under way, nor the total amount of investment expected to be made over time, however.
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