Zara founder Amancio Ortega's investment company accused of 'bullying tactics' to deny retailers rent cuts
- Zara's real estate arm, Pontegadea, has been accused of using "bullying tactics" to deny
rentreduction requests from UK high-street stores, according to The Times.
- An anonymous
retailchain told the newspaper that Pontegadea, the investment company of Zaracofounder Amancio Ortega, wanted to add an extra year to its lease for every month of unpaid rent.
- Caffe Nero also asked Pontegadea for a rent reduction for one of its stores in central London. Instead, Pontegadea demanded the rent be nearly doubled.
Pontegadea, the real estate arm of retailer Zara's parent
The firm is the personal investment company of Amancio Ortega, the Spanish billionaire that founded Inditex. According to a report in The Times, it has denied rent cuts to high-street stores and been stubborn in the face of their demands during the
The unnamed retail chain, reportedly a well-known one, said the real estate firm originally said that an extra year should be added to its lease for every month of unpaid rent. Pontegadea then agreed to a three-month rent holiday for the retailer — but only if it extended its lease for two years, the report said.When the retailer rejected this condition, Pontegadea reportedly threatened legal action and bailiffs — UK legal officers — turned up at a store.
A senior spokesperson for the anonymous chain told the Times: "The majority of our
Pontegadea, which has a €15.2 billion ($17 billion) property portfolio, has made use of dividends from Inditex to purchase prime commercial real estate.
A spokesperson for the real-estate firm told the Times: "We are individually analysing the situation with each tenant, but we do not publicly refer to the terms and conditions of private lease contracts."
- Stocks to track on March 4 — HDFC, Airtel, Infosys, Adani Ports and others
- Deficit budget tabled in Arunachal Assembly with focus on
- DPR for piped water connection project announced in Rajasthan Budget to be ready by Aug 30: BD Kalla
- Budget session of Karnataka legislature to begin on Thursday
- Bharat Biotech’s Covaxin shows 81% efficacy after second dose in phase 3 trials