Canary Wharf Group has backed a letter to the chancellor from restaurant bosses calling for a nine-month rent-free period, to help them tackle the impact of the coronavirus lockdown.
The proposal, called the #NationalTimeOut, would involve pushing back rent for nine months so that all hospitality businesses pay nothing until Q1 2021.
The campaign, led by entrepreneur Jonathan Downey, suggests that to make up for this rent-free period, each lease could be extended by nine months to ensure payments are not lost.
An extension to the existing lease forfeiture moratorium to the end of December has also been suggested.
Under the proposal, landlords would also still receive service charge and buildings insurance cover, a nine-month loan or interest payment break, and “special access” to the Coronavirus Business Interruption Scheme.
The resulting lack of rental income would also mean exempting landlords from any loan or covenant breaches. Lenders have been urged to support landlords in a “much more effective way” than they have for other businesses.
An email to Downey from CWG, dated 17 April and mentioned in the letter, stated that it hoped proposals would be adopted by the government “to benefit both tenant and landlord”.
The letter has been signed by bosses of chains including Burger King, Caravan, D&D, Dishoom, Franco Manca, Gordon Ramsay Group, Gymbox, Harts Group, Hawksmoor, JKS Restaurants, Living Ventures, Nando’s, Pret, Subway, The Breakfast Club, Tortilla and Wahaca.
It is also supported by trade associations including UK Hospitality.
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