Insurance News Archive

Shopping centre owners to cut service charges

Commercial property owners are cutting service charges for retailers in a bid to save money.

The landlords and retailers working group - which was set up with the aim of both professional bodies helping each other to cope with the economic downturn - said British Land's Meadowhall shopping centre in Sheffield will make savings of more than 18 per cent in the first year by implementing the reductions.

In the following year, the retail centre is likely to see operational costs reduced by more than £2 million, with savings rising to 20 per cent.

Land Securities' White Rose shopping centre in Leeds will reduce its annual service charge by 13 per cent, cutting its budget to £7.25 per sq ft, according to the group.

Yesterday, the Times reported that the two commercial property companies are set to sell a combined £750 million worth of retail assets in the next few weeks.

The newspaper said Land Securities is looking to sell its share in the Bullring centre in Birmingham, while British Land wants to offload its 50 per cent stake in Meadowhall.

29 Jan 2009