First Property Regulatory News (FPO)

First Property Group plc

First Property Group wins landmark Coronavirus rent arbitration

A fund managed by First Property Group plc (AIM: FPO), the property fund manager and investor, has recovered £450,000 in rent arrears from Signet Trading Ltd in the first known arbitration under the Commercial Rent (Coronavirus) Act 2022.

The fund, Fprop Offices LP, owns Imperial Place, Borehamwood, Hertfordshire, a 220,000 ft2 office complex in which Signet Trading Ltd ("Signet") leased four floors. Signet, which operates the H. Samuel and Ernest Jones jewellery store chains, unsuccessfully tried to claim that these offices should be protected from rent debt under the Commercial Rent (Coronavirus) Act 2022, as its retail stores had been so protected.

In a landmark ruling Gary Cowen QC, of Falcon Chambers Arbitration, agreed that these offices were not affected by the Covid-19 closure requirement that forced shut Signet's retail stores. Signet has been ordered to pay total arrears of £448,043 due under its lease for the quarters commencing on 25 March 2020, 25 December 2020 and 25 March 2021.

The full ruling can be found here: https://www.falcon-chambersarbitration.com/crca/awards

Commenting on the ruling Martin Pryce, Investment Manager at First Property Group, said: "We all want to see the high street thrive and understand the role that rent arrears relief played in helping to keep shops from closing during the Coronavirus pandemic. Signet, however, tried to take advantage of the Commercial Rent (Coronavirus) Act 2022 by claiming relief for its office space in Borehamwood, in addition to its retail stores. That was not what the Act was for.

"Too many businesses tried to use the cover of Covid to avoid paying rent that was rightfully due. Landlords should not have to pay for this."

ENDS

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