Cadogan toughens up lease terms after Covid kindness

Chelsea landlord Cadogan Estates is demanding tenants sign inflation-linked leases and put down hefty deposits as it reasserts itself after Covid. Tenants on the 93-acre estate – which encompasses Sloane Square, the King’s Road and Sloane Street and is home to luxury brands from Tom Ford and Dior to Louis Vuitton – are being asked to sign leases with upward-only rents linked to the retail price index, which currently stands at 11.4%. In addition, Cadogan wants tenants to put down a year’s rent as deposit on new deals. The Times (£) claimed that fashion retailer AllSaints recently closed its King’s Road store as a result of the demands. One tenant said Cadogan was being “a pain in the arse”. The estate provided more than £20m of support to tenants during the pandemic. A Cadogan spokesperson said the leases were in fact a return to normal practice. “As a business we have sought to develop a sustainable leasing model which sees generally minor inflationary rises rather than significant rent reviews every few years. Inflation is also expected to fall dramatically, which will lessen the impact of such increases.” They added that while AllSaints had moved from its current location, the relationship “remains very positive”, adding “we hope to find an alternative and mutually suitable location as one becomes available”.