Panther Securities chairman Andrew Perloff has accused the government of overlooking the property industry when it comes to the business rates holiday.
In the company’s full year results he said that, as the lockdown following the outbreak of Covid-19 had made it “illegal to trade” from most premises, “they have no rental value and even if possible to relet, it needs a long timescale and generous incentives to do so”.
Perloff said this meant that should a retailer or leisure operator exit a building, the owner of the building would be subject to paying full business rates without any income.
“Vacant rates were a ridiculous imposition even before Covid-19 came along,” he added.
Perloff is predicting the UK will be back to “a normal free enterprise system” within six to nine months.
He said the business estimates that around 41% of its income derives from businesses that have not been recommended or forced to close, and that the annual income from these businesses is around £5.6m – which is enough to cover Panther’s circa £4.1m interest payments to its lenders and most overheads.
Panther Securities recorded a pre-tax loss of £4.96m for 2019, compared with £8.7m profit in 2018, while revenue increased to 4.4% to £14.2m.
The firm said the decrease of £8.8m on the value of its entire portfolio was following a revaluation.
At the end of December Panther was using £60m of its £74m facility, and had £9.5m in cash available.
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