Did you know?

[steveL]

Just an interesting fact that emerged reading through some papers:

HBC receives 15% of the rents charged from Middleton Grange as the freehold owner. Middleton Grange is leased to the present operators.

The full text:

" The Council is the freeholder of the centre, which is let on a long lease to Mars Pension Trustees and managed by agents JLL. Under the lease the Council receives 15% of the net rental income from the retailers, less various deductions. This rent varies each year as units are let or become vacant and as retail rents within the centre rise or fall. 

Movements in the property market in the last few years have had a significant negative impact on the centre in terms of occupancy levels and rental income. This has resulted in a fall in income in recent years with income received in 2014/ 15 being £221,157 against an anticipated finance budget figure of £330,000. This financial risk was recognised in the Medium Term Financial Strategy and a Risk Reserve was established. The £500,000 reserve also makes provision for a shortfall in local land charges income however it is predominately earmarked to cover the risk of a shortfall in income on the Shopping Centre.  Based on the current projection it is expected that this reserve will provide sufficient funding to cover any shortfall in 2016/ 17. This position will be closely monitored and reviewed before the 2017/18 budget is set. 

Since the acquisition of the centre by Mars in early 2014, there has been a much improved working relationship with the centre; JLL have actively sought discussion with the Council and have shared their vision. At an early stage they presented a number of proposals designed to improve the centre's performance in the short, medium and longer term.  The current active management of the centre has led to an improved situation with respect to the ground floor units; however the impending closure of BHS and the recent BREXIT decision may bring about delays in the investment required for their more ambitious ideas to be implemented.   "