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Legal issue win at Castlepoint

 

AGL client Sainsbury’s have won a legal issue for retrospectively reduced rent at their 80,000 sq ft Castlepoint store. Shortly after Sainsbury’s signed the lease, the car park began to disintegrate and this led to closure for a few weeks over Christmas 2003 / 04. The store has since been trading with temporary props supporting the car park which will require reconstruction with phased closures.  This legal decision allows this disrepair to be taken into consideration when assessing the open market rental value of the store at the rent review due in Dec 2007.  The amount of rental discount is yet to be decided.
 
As far as we are aware Sainsbury’s are the only retailer in this scheme to argue for such a discount. AGL advised Sainsbury’s to put forward this argument and are delighted that this advice will result in a reduced rent on these premises.