Incentives for tenants

Our interpretation of the contract terms relating to  incentives to be offered to tenants.

The form of lease appended to the contract  envisages that tenants of the new properties will receive incentives to take up the units in the form of rent-free periods, capital contributions and financial inducements such as fit-outs.

Some detail about these has been included in the CBRE viability report obtained by the CEC in 2011. The redacted copy of the report tells us that Debenhams’ incentive will be worth £3.75 million and the cinema operator’s £1million plus some other benefit, estimated to cost about £300,000. For other tenants, we only know that ‘incentives will reflect what is usual in the market’.

Note that these incentives are to be paid by the developer. They form part of the estimated costs of the project.

Timescales

Pre-conditions

Viability assessment

Financial arrangements

 

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