Sainsbury's appeal 42% rent hike

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Local supermarket feels the pinch of rent review decision

 

Love them or loathe, few could deny that Sainsbury's rent hike of 42% is somewhat steep.

According to an article in Property Week, the supermarket last week launched an appeal against a rent review that would see an increased rent of more than 40% for its Chiswick store.

Arbitrators found in favour of the landlord, British Land deeming the £10 per square foot rise fair.  The record rise brings the rental bill to £30 per square foot of the 75,700 square foot store (that's £2,271,000 a year to save you reaching for the calculator).

The supermarket chain are appealing on the grounds that the method of valuation was wrong. 

A spokesperson told the property industry's magazine "We can confirm that we have made an appeal against the rent review at our Chiswick store.  We have a number of concerns about the approach to the valuation in the award, which we have sought professional advice on."

 

October 12, 2006