‘Turning over a new lease?’ Are turnover-based leases the answer for tenants facing COVID-19-related business disruption?

It’s not surprising that some landlords are concluding that sharing the pain with their tenants is a better option if it helps tenants to continue to trade. One way of achieving this is through turnover-based rents and in this briefing, we have explored some practical and contractual considerations for investors, landlords and lenders on this model. It’s a topical subject and just this week we have seen New Look launch a CVA seeking to reset 402 stores to a turnover rents , with its remaining 68 stores moving to nil rent, putting it on course for a showdown with its landlords.