Host's free-of-tie conversion 'highlights cost issues'

A Hampshire licensee is set to pay a heavy price for seeing his business go free-of-tie after new landlords attempted to almost double his rent and impose a £45,000 repairs bill.

Host Kamel Behdoost will see his rent rocket from £35,000 to £65,000 following the sale of the Havana Café Bar, in Southsea, by Admiral Taverns to a local property company. Trade leaders say the case graphically highlights costs tenants and lessees could face if they are released from the tie.

Behdoost's new landlord, Roxan Construction of Southampton, has made its rental demands despite the bar only claiming to sell three 11-gallon kegs weekly.

The business was tied to Admiral for beer and cider only. Trade consultant Phil Dixon warned that issues of rent and repairs will become key issues for licensees released from the tie: "Most agreements contain a clause allowing a landlord to review rent if a premises becomes free-of-tie."

"Once the tie has disappeared, landlords inevitably become 100% property companies and maximise income from every opportunity.

Roxan initially offered to buy Behdoost's 20-year lease for £250,000 when it purchased the premises from Admiral 12 months ago, but subsequently withdrew its offer. Another company offered £330,000 for the lease at the same time, on condition it eventually bought the freehold.

Behdoost said Roxan wants the Grade II-listed six-storey building in West Street to develop into flats and apartments.

"Clearly they want me out, but I'll contest these demands through the rent arbitration procedure," he said.