Retailers at Manchester’s Royal Exchange shopping centre are in dispute with landlord Prudential, just three months after the centre reopened following the IRA bombing two years ago.
Last week, Royal Exchange traders held talks with the Pru and managing agents Richard Ellis. Some traders are demanding more incentives to ease them through current slow trading conditions and a reduction in service charge.
The centre is blighted by construction work on Cross Street and St Ann’s Square. Ian Barker of Richard Ellis said the centre managers recognised the tenants’ plight.
Although the Pru is the ultimate owner of the centre, the receiver to Power Securities holds the long leasehold. The tenants at the centre are subtenants to the receiver, which relies on rent and service charges to promote the centre. Barker said many tenants have not completed their leases and until they do, the receiver is unable to offer any incentives. In addition, some tenants at the Royal Exchange have not reoccupied their units, Barker added.
EGi understands that tenants feel the centre has not been advertised enough and people don’t realise it has reopened. The recently opened Trafford Centre is causing further disquiet.
Barker said Power’s interest in the centre will eventually be put on the market.
EGi News 28/09/98
