Shopping centre owners and other property firms say they face collapse

Shopping centre owners and other property firms have warned ministers that they face collapse without support to replace lost rental income. 

Businesses affected by the coronavirus outbreak have been given a three-month rent moratorium, with landlords banned from evicting those who cannot pay. 

Burger King yesterday joined the growing list of firms to say they will not pay their quarterly rent bills due today so they can afford to pay their staff. 

In a letter to Chancellor Rishi Sunak, property industry group Revo, which represents retailers and landlords, said the measure could send some property firms to the wall unless their income is replaced urgently. 

Many are voluntarily agreeing deals with tenants to lower, delay or forfeit rent payments entirely during the crisis – but that is putting pressure on their own balance sheets. 

It has sparked fears for property giants such as Intu and Hammerson, which were already struggling before the pandemic. 

Edward Cooke, chief executive of Revo, said talks were under way with the Government about what support can be made available to landlords, potentially in the form of loans or grants amid fears that some may not qualify for existing schemes. 

He pointed out that many property firms counted UK pension funds among their top investors, meaning the nest eggs of retired workers could take a hit if they collapse. 

Cooke added: ‘We want these companies – which support thousands of jobs and invest billions in UK towns and cities – to survive, and most will with the right interventions.’