Westfield retailers to miss out on fee decrease
Westfield is to cut the cost of its service charges by about 10 percent – but not for retailers based at the Shepherd's Bush shopping centre.
The Australian company says it is going to offer reduced service charges to retailers based at its regional shopping centres to help them survive the recession.
Retailers at Westfield London, meanwhile, saw their service charges increase from £8.50 a sq ft to £14 a sq ft just days after the centre opened last October.
According to reports, several shops, including Next, are refusing to pay part of their service charge and some have appointed consultancy firms to try and challenge the amounts being asked for.
"Next is not happy with the level of service charges at Westfield, which it views as unreasonable,” said Andrew Varley, group property director at Next.
"We are in discussions with the landlord along with other major retailers at the centre and hope to resolve the matter amicably."
Denis Carruthers, director of shopping centre management and marketing at Westfield, said the rates were justified: "Expenditure to date is comparable with budget and on a pro rata basis appears in line with other major shopping centres in the London area," he said.
However, Westfield say service charge levels at the W12 centre are currently under review.
Westfield shopping malls which will benefit from a service charge reduction include those in Nottingham, Derby and Tunbridge Wells.
13 March 2009