Star tenants to pay full rent from June
The company has extended its 90% rent concessions, which were due to end on 1 March, to 16 May, leaving 10% payable by licensees.
From 17 May (when pubs are able to reopen inside with restrictions in place if the Government’s roadmap is successful) until 20 June, the discount will be reduced to 10% in rent concessions, leaving 90% payable by licensees.
Star estimated the combination of these rent discounts means about half (50%) of rent will be due for the month of May.
Rent concessions
Furthermore, from 21 June (the date in which the Government’s roadmap states all legal limits on social contact will be removed), licensees will need to pay their rent in full.
The pubco also stated it had invested £62m in rent concessions since March 2020.
Discounts will also be offered to pubs in Scotland and Wales, once there is clarity from the devolved nations' Government's on reopening dates.
Star Pubs & Bars managing director Lawson Mountstevens said he was proud of the resilience Star employees and licensees had shown in the most challenging trading conditions seen in generations.
Investment opportunities
Mountstevens added: “If the Government sticks to its reopening roadmap plans, it should be a great summer as research shows the public can’t wait to get back to the pub. We’ve invested significantly in rent concessions over the past 12 months, to help ensure our pubs are ready and able to reopen to meet this demand.
“I firmly believe this pandemic will show the true partnership nature of the leased and tenanted model. From my conversations with our licensees, I know the vast majority have appreciated the support we have provided.
“Following the Chancellor’s support package, including the announcement of cash restart grants, the Government needs to look at the long-term sustainability of the pub industry.
“We are excited about investment opportunities across the UK and have a leading role to play in helping the country’s economic recovery and supporting the Government’s levelling up agenda but we need meaningful alcohol duty and business rates reform, as well as a long term VAT cut on all sales across hospitality.”
Star tenant of the Prince of Peckham in east London, Clement Ogbonnaya said pubcos get a "bad rep" but the Heineken pub arm came through for its tenants, providing continued rent support and information on Government regulations.
Similarly, Jackie Fairburn of the Hare & Hounds in West Ardsley, West Yorkshire added: "I am really appreciative of the rent and general support I’ve had to date from Star Pubs & Bars. Even with that help, I’ve been haemorrhaging cash over this last year. I simply don’t know how others without this level of support can survive."
