Insurance News Archive
Commercial property owners call for tighter insolvency rules
Commercial property landlords are calling for tighter controls on insolvency to prevent companies using administrators to threaten suppliers when a firm is not on the verge of collapse.
The appeal follows the finalising of a company voluntary agreement (CVA) with JJB Sports, allowing the beleaguered firm to change the lease terms for 250 of its stores, meaning rent can be paid monthly.
Property companies involved in the deal, including British Land, Hammerson, Land Securities, and Prupim, praised JJB and its advisors KPMG for their "open and honest" handling of the proceedings.
"CVAs should not be used to impose unreasonable terms on landlords or any other creditors and they should not be used to break the terms of existing lease documents across a portfolio," said Peter Best head of UK asset management at Prupim.
Meanwhile, the Royal Institution of Chartered Surveyors and Lambert Smith Hampton recently warned that empty property rates could lead to commercial property owners demolishing buildings to avoid paying the tax.
28 Apr 2009
