DIY chain Homebase may be forced to quit its store at the Ladymead retail park in
Standard Life Investments is in talks with Homebase over a rent review of its 40,000 sq ft Ladymead store. Standard Life wants to increase the rent from £28.50 per sq ft to £40 per sq ft, arguing that the open A1-consented park could be occupied by any type of retailer, and not just bulky goods.
“Homebase shouldn’t really be paying the rent it is,” said a source. “If the arbitration finds in favour of the landlord it will probably leave as the rent will be too expensive.”
The arbitration is being conducted by RICS chairman Graham Chase.
Tenants and landlords in the out-of-town market will be watching the case closely, particularly following Chase’s decision last October to allow a 42% increase in rent at Sainsbury’s store in Chiswick, west
“If Homebase’s rent goes up as much as it did in the Sainsbury’s case it may have knock-on effects for retailers,” said an agent.
