In breaking news, commercial landlords have voted for a deal that will save BHS from administration, and with it thousands of jobs, but which will leave over half of landlords and their investors receiving reduced rent.
The British Property Federation (BPF), which represents commercial landlords, has commented on the Company Voluntary Agreement, which will see 77 stores undergo no rent change, compared to 47 stores that will pay a reduced rent of 75% or 50%, and 40 stores that will just pay 20% rent. Landlords will be able to terminate such leases if they find other tenants.
The deal could see landlords receive 6.15p – 10p in the pound. The CVA offers a better return for landlords than if it had fallen into administration, as well as seeing a greater number of stores remain open.
CVAs must be agreed by 75% of all unsecured creditors and 50% of the unconnected unsecured creditors before they are passed.