Following the economic downturn, many businesses across the UK have found themselves suffering financial hardship and a vast number have been forced into receivership. This leaves commercial property landlords in a very difficult position.
It is due to this, that Price Waterhouse Coopers (PWC) and the British Property Foundation (BPF) have worked in tandem to create a guide for landlords of commercial property, who are faced with distressed or insolvent tenants.
The BPF say, ‘There are various options available to landlords faced with distressed or insolvent tenants’ and the guide is designed to advise of the best approach to take.
Mike Jervis, real estate business recovery partner at PWC, said: ‘The guide for landlords is a user-friendly and comprehensive look at the approach landlords may want to take when faced with a distressed or insolvent tenant. Landlords are an important stakeholder and in these sorts of situations negotiations with them can be key to the survival of a business. Given the current volume of distressed retailers, this collaboration with the BPF is very timely.’
The guide is intended to be very simple to follow, though it must be stressed that it should be used as a reference point only, as the specifics of each and every case will differ.
The commercial property guide can be viewed at,http://www.bpf.org.uk and is broken down into six different sections: Which are; Administrative Receivership; Pre-packed Administration ; Administration ; Company Voluntary Agreement; Insolvent Scheme ; Liquidation. Each link contains information on how the particular insolvency or restructuring procedure will typically work, the governance of each process and the actions usually available to the landlord. Details to check and information which is required to be requested, is also provided to help the landlord in each case.
If you are a commercial property landlord suffering with insolvent or distressed tenant’s, this guide ought to be your first port of call.
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