News Article Comments : BII rent review roadshows

RE: BII rent review roadshows

This will be the place to ask questions about how they arrive at such extortionate rents, the more good questions that are asked the more pressure goes on. How can the RICS estimate the future sustainable earnings potential by a competent operator, when the surveyor has never run a pub, in most cases fails to recognise the existing accounts as a source of information declines to define a competent operator, when their employers are putting new lessees through basic BII qualifications expecting new lessees to meet their criteria with little or no experience. One of the most senior beings in the BII defined a competent operator to me last week as someone who had a number of BII advance qualifications and at least three years of PROFITABLE TRADING or five years of PROFITABLE TRADING and elementary qualifications.

Come on all you guys lets get the questions out and get some answers, I am told that most of the speakers act for the Pub Co's in some capacity so don't get tongue tied.

We want good dialogue to ensure we all get the answers into the Public Domain.

This post replies to martin kay > RE: BII rent review roadshows

BII rent review roadshows

Mr Phil Dixon, the very man who said in last weeks MA (hard copy) that THE REMOVAL OF THE TIE WOULD LEAD TO BREWERS DISCOUNTS LEVELS FALLING. Tell me Mr Dixon how do you get a poorer deal than 0% discount? Many tenants don’t get any discounts at all. I personally get £42 a barrel discount do you honestly think without the tie I wouldn’t be able to negotiate a better deal with a brewer? In the same article he goes on to say that ‘upwards only rent reviews are clearly not being implemented’. Can someone please explain to him exactly what RPI linked rents are please because he is meant to be a trade expert. Instead of rents going up every 5 years they now go up every year. Clever wording with exactly the same result UORR!! The last 5 years have seen pub rents linked to RPI increase by 24%. He tries to clarify his stance on RPI by linking it purely to beer volumes, confused? Don’t worry so am I.

His next statement ‘THE PRINCIPAL OF RENTING ON AN ESTIMATED PROFIT WAS FINE’ is an absolute corker, he qualifies this by saying ‘TOO MANY LETTINGS INTERPRET ‘COMPETENT’ AS BEING RETAIL GENIUS. So which is it Phil? Do you want rents set based on the future potential trading of a pub or not? Come on you cant have it both ways! Don’t you realise that the pubcos hold a dominant position and because of this hypothetical balance sheet scenario they can and have abused their position of strength. The proof is in the pudding look at the levels of tied rents across the Country. It doesn’t work Phil RICS and the BBPA have got it wrong, they have totally sold out the tied tenant.

edited by: Stephen Corbett at: 07/08/2008 00:11:20

This post replies to Biggles Chef > BII rent review roadshows

BII rent review roadshows

Stephen you are right on the button, sadly Phil is a Gamekeeper turned Poacher these days, to be fair the Poachers pay is a lot more than being a Gamekeeper these days.

An interesting point he declined to ask David Morgan to speak because I gather it might raise some unwanted issues by the Pub Co's or their speakers. I thought these Road Shows were meant to be unbiased constructive information not whatever Phil decides as suitable, come on Phil if you are acting for the BII on these road shows lets have an open across the board speakers and comments. We want to ask Pub Co Valuers questions but as a member of the BII we want knowledgeable people with the lessees view to speak, otherwise it will give the wrong impression to members and future members of the BII being neutral and independent.

This post replies to Stephen Corbett > BII rent review roadshows