Tesco Rent Review, Prescot
Client: Private Property Company
Instruction: Rent review negotiations
We advised the landlord on the rent review of this successful Tesco food store following completion of its second extension. The accommodation provides a ground floor gross internal area of 119,435 sq ft with a mezzanine area of 27,500 sq ft and a re-sited petrol filling station.
The rent review was due 25 June 2010 with the passing rent set at the previous review equating to £17.50 per sq ft. The review clause was complicated by the assumption that one valued a notional store of 67,422 sq ft and then applied multipliers for the additional space at ground and mezzanine levels plus petrol filling station.
We assembled the comparable evidence that was available in the North West before negotiating with the tenant's surveyor. Following negotiation a rent of £3 million per annum was agreed, reflecting £21.35 per sq ft inclusive of the petrol filling station.