Punch licensee's rent victory

Punch Taverns is thought to have agreed to reduce a licensee's rent and offered discounts of £12,505 a year after proposing rent increases of up to 51%.

Mark Pester sought a court hearing after Punch proposed increasing his rent from £41,000 to £52,000 at his lease renewal.

Pester's legal team argued that £25,000 would be more realistic, especially as the pub — Sir Robert Peel in Norbiton, Surrey — had no discounts.

Punch was to go to court on 8 January to propose £61,500 after giving examples of higher rents at other pubs it said were comparable.

Pester's rent valuation advisor David Morgan, managing director of Cookseys DMP, said this did not take into account the fact that these sites have higher turnover than the Sir Robert Peel.

Punch later reduced its proposed level to £37,500, but with no discounts, which was rejected by Pester.

An 11th-hour out-of-court settlement was reached. The MA understands that Punch agreed to reduce the rent to £37,500 and offer substantial discounts. Morgan said he could not comment on the settlement due to a confidentiality agreement.

Punch declined to comment on specific details but said: "The rent was based on the fair maintainable trade and was clearly outlined to the licensee under the terms of our Customer Charter.

"We believe the rent calculation was fair and would always consider each case on an individual basis. In the interests of building a sustainable relationship with the licensee, we have agreed a compromise solution."