Property landlord successful in legal action over unpaid rent
AEW UK REIT has announced the successful outcome of its legal action against two well-funded national tenants to recover unpaid rent.
TheBusinessDesk.com understands the two companies are Shirebrook-based Sports Direct and Mecca.
The court ruled in the company’s favour and ordered that rent due for the periods claimed must be paid.
The total amount to be recovered is £602,489. In addition, the AEW says it will be writing to the tenants to claim the outstanding rent arrears that have fallen due for payment since the claims were issued and are “confident” of further recovery given the outcome of its successful application to the court.
AEW says it will also look to recover its legal fees incurred in the litigation from the tenants.
The combined total of the amount already claimed and the outstanding rent arrears that have fallen due for payment since the claims starts is £1,200,566, including VAT. Of this amount, £924,530 relates to the period up to 31 March 2021, 56% (£520,919) of which has been provided for as at that date.
A statement from AEW said: “[The company has] always made it clear that it will take legal action against tenants if required, particularly well-resourced companies that it believes are able to pay their rent and have sought to take advantage of government legislation intended to protect financially vulnerable tenants. Both tenants have a limited time period during which they may submit an appeal.”
Sports Direct did not respond to requests for a comment.
