Afternoon:
10°c
New row over service charges at Westfield mall
Jonathan Prynn13 Mar 2009
A fresh row has broken out over the level of service charges at the Westfield shopping centre.
At least two major retailers, including Next, have refused to pay part of the charge demanded by the Australian developers who built the £1.6 billion mall at Shepherd's Bush. Next said it was balking at charges of £14 per square foot rather that what it claims was an original indication of £8.50.
Another big retailer, which asked not to be named, also refused to pay the full amount, which represents the highest service charges at any shopping centre in Britain. Andrew Varley, group property director at Next, said: “Next is not happy with the level of service charges at Westfield, which it views as unreasonable.
“We are in discussions with the landlord along with other major retailers at the centre and hope to resolve the matter amicably.” Westfield declined to comment on individual tenants saying that the London service charge was “under review as the centre is still in its first year of trading”.
The high level of charges has been a source of resentment for many tenants at the mall since it opened in October. Westfield has argued they are justified because it was built to the highest specification of any centre in Britain.
Reader views (5)
Does anyone else think it is backwards and old-fashioned to omit consideration of running costs from the specification?
- Tim, London, UK, 13/03/2009 16:36
Report abuse
The shops should move back onto the High Street, which is becoming a desert.
- Celiad, London,UK, 13/03/2009 13:26
Report abuse
Ross,
I have a client that opened up in Westfield, and no, the £14/sq ft charges were not revealed pre-handover, i.e. once the retailer had committed vast sums of money to taking on the unit and fitting it out. It came as a surprise to just about everyone.
- Escobar A-Lop-Lop, Camden County, 13/03/2009 13:24
Report abuse
Did retailers such as Next not know what the service charges were before they signed their contract? Surely, something as fundamental as a service charge should have been explicitly stated in the tenancy or contract. Westfield couldn't charge £14/sq.foot if it wasn't in the contract that it can do this.
- Ross, London, UK, 13/03/2009 11:14
Report abuse
Cathedrals have always been expensive places to maintain, I guess it’s the same for these modern “cathedrals”.
- Mike Melbourne, Bedford England, 13/03/2009 10:21
Report abuse
