intu to slash service charge for tenants

Company’s cost savings allows it to reduce service charge by 22 per cent

intu has announced it will cut service charge for its tenants by 22 per cent in the second half of 2020 as a gesture offering support to retailers amid the coronavirus crisis.

The shopping centre owner said its cost savings would allow it to lower its service charges, and would deliver an 11 per cent overall reduction for the year. The news follows the business rates cut being offered by the Government.

A spokesperson for intu said: “We will work closely with our tenant customers to help mitigate the challenges we are all facing.

“We have already written to our customers to let them know we have been able to find additional cost savings to reduce the 2020 service charge budget by 22 per cent in the second half delivering an 11 per cent reduction for the full year.

“We will continue to do all we can for the brands who rent with us while also ensuring that any concessions we make are not to the detriment of our own financial position as we look to address our balance sheet issues.

“We welcomed the business rates holiday and other measures recently announced by the government but more support is needed.

“The retail and leisure industries will be among the hardest hit by the coronavirus and we will be working closely with our customers, other landlords and industry associations to best represent their needs in Westminster.”

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