The new approach focuses on four key areas: more flexible leases; rebased rents at more affordable levels, replacing the existing rent-review system with an index and an “omnichannel top-up element”.
Mark Bourgeois, the shopping centre owner’s UK and Ireland managing director, said: “The lease structure in the UK particularly has not been fit for purpose for some time. Retailers themselves are loud and clear in telling us that change is required and a lot of deals that we’ve been doing over the past year or so have had elements of what we’ve [now] announced.”
Hammerson will pilot the approach at its Union Square centre in Aberdeen before rolling it out across its entire portfolio. The landlord expects all leases to be converted by 2023.
Flexible leases could take a similar approach to continental Europe with options of three, six, and nine-year lease breaks.
“This enables the tenant to derisk their position
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