Greene King tied tenants in tier 2 and 3 to get 90% rent concessions

By Nikkie Thatcher

- Last updated on GMT

Financial aid: Greene King has estimated it has spent £25m on rent concessions amid the coronavirus pandemic
Financial aid: Greene King has estimated it has spent £25m on rent concessions amid the coronavirus pandemic

Related tags: Greene king, Pubco + head office, Tenanted + leased

Pubco Greene King has confirmed its tenants in tiers two and three will receive a 90% rent concession when national lockdown restrictions are eased tomorrow (Wednesday 2 December).

For Greene King Pub Partners tied tenants in tier one will get a 40% rent concession however, of the pubco and brewer’s 875 English pubs, currently there are no Greene King pubs in tier one.

The pubco estimated its financial support amid the coronavirus pandemic for its tenants now stands at £25m.

Support review

Greene King Pub Partners will review the level of support every four weeks, it said.

Alongside the rent concession, the firm stated tenants can receive discounted barrels from Greene King until the end of March 2021, with tied tenants received a trade credit of £35 per barrel.

Greene King Pub Partners managing director Wayne Shurvinton said: “We supported our tied partners through the recent November lockdown with a 90% rent concession and that will remain in place as the tier system is a lockdown in all but name for the majority of pubs.

“Despite investing hundreds of thousands of pounds over the summer to install safety measures like Perspex screens and hand sanitiser, plus taking on extra staff to increase cleaning frequency and allow table service, our tenants have still been closed down for Christmas by the Government, even though they have done everything asked of them."

Not enough

He added: “We are providing this rent concession to do what we can to help what are profitable and viable businesses get through winter so they can begin rebuilding in 2021.

“Unfortunately for some, rent concessions may not be enough and without further Government support, such as increasing grants, extending the VAT hospitality cut to include alcohol and bringing back the Job Retention Bonus, thousands of pubs remain at risk across the country.”

This comes after Greene King chief executive Nick Mackenzie told The Morning Advertiser​ he felt let down by the Government​. The pubco boss added that he believes the narrative around pubs and the pandemic needs to change. 

Related topics: Greene King

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