Eighty retail tenants seek to pay Prupim on monthly basis

Just over 80 of Prupim's retail tenants have sought to pay rents on a monthly rather than quarterly basis since the global real estate investment manager offered the temporary concession in January.

Prupim said that before the end of the first quarter applications had been received for just under 40% of all eligible tenancies from retailers seeking to pay rents monthly. Under the terms of the scheme, which was set up in response to the economic conditions faced by the retail sector, eligible retail tenants can pay rent on a monthly basis for a temporary period of 12 months from March 2009.

'This response confirms that Prupim's move has been welcomed by a great many retailers but that many others remain comfortable continuing to pay on a quarterly basis, avoiding the additional administration generated with paying rents monthly,' said John Duxbury, director of Retail Asset Management.

'There has been a flurry of recent enquiries in the last few days and we envisage that there will be more applicants in the weeks ahead as the tactic allows retailers flexibility in difficult economic times, as well as helping us maintain our strategy of preserving long term, sustainable returns from property investment,' said John Duxbury, Director of Retail Asset Management.

The vast majority of applications are likely to be agreed, although a minority which involve substantial arrears, or are ineligible, may be declined.