Property giant Landsec on Tuesday warned it will not support “manifestly unfair” retailer restructures, after chains closing shops and seeking rent cuts dented the value of its empire.
The landlord, like rivals, saw tenants including Debenhams and Topshop parent Arcadia exit sites using a controversial company voluntary arrangement model in the six months to September 30.
That, plus tough High Street conditions, contributed to the value of Landsec’s retail parks and shopping centres outside London plunging.
The total portfolio value decreased 2.8% to £13.4 billion. It recorded a pre-tax loss of £147 million, compared with a £42 million profit a year earlier.
Landsec’s boss Rob Noel said he is prepared to try to support genuinely distressed retailers, but claimed some tenants have previously only given him 24 hours’ notice before asking him to back a CVA.
He said: “If CVAs are manifestly unfair and not transparent we will not support them. Retailers need to engage with all creditors on equal footing.”
Noel was bullish about London offices though. His firm is on site creating one million square feet of new London buildings.
Noel, who plans to step down next year, said Landsec “enters the next six months with confidence”.
