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Publican secures 40% rent reduction with Punch

By Gurjit Degun , 14-Dec-2012
Last updated on 02-Jan-2013 at 13:24 GMT

Related topics: General News

Brewer and pub operator Nick Davis of Hobsons brewery has secured a 40% rent reduction with Punch Taverns.

The pub company proposed rent of £40,762, an increase from £32,000, at the King’s Arms in Cleobury Mortimer, Worcestershire.

Davis disagreed with the suggested rent because Punch surveyed the property five months prior to the rent review date. The review was due in May 2012. Punch surveyed the property in December 2011. He also said that he had spent a lot of money converting the listed building into a pub and boutique hotel.

Davis appointed property firm Morgan & Clarke to fight his case. The rent was calculated at £21,000. When the case was presented to Punch, the pubco settled at £24,350.

Davis said: “I found it to be a simple process. The lease allows you to [argue the rent], and not a lot of people know about it. They are also worried about going to advisors.

“At the end of the day, Punch was very fair about it. They accepted the rational information. I would have liked the process to be a bit shorter.”

David Morgan, who handled the case, said: “I am delighted that a compromise was reached. A reduction of 40.3% is not the least unusual in the present lease market. For too many rents are still eye watering high.”

A Punch Taverns spokesman said: "We followed the process for an open market rent review as laid out within the Code of Practice and it reached its natural conclusion. We are pleased that the partners found the process clear and transparent."

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