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Segro collects nine tenths of third-quarter rent

The property company is not reliant on closed high street stores in the same way as other investors.

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Many businesses have been struggling to meet payments during the Covid-19 outbreak (Victoria Jones/PA)

Many businesses have been struggling to meet payments during the Covid-19 outbreak (Victoria Jones/PA)

Many businesses have been struggling to meet payments during the Covid-19 outbreak (Victoria Jones/PA)

Property giant Segro said that it had been paid a vast majority of the rent it was due at the end of June, even as many of its fellow landlords struggle to get tenants to meet their bills.

As of Tuesday, the business had gathered up 93% of the £37 million it is due for the third quarter of the year.

Businesses often settle their rent bill every three months, paying for the next period.

But with the coronavirus crisis forcing many businesses to shut down, several property companies have been coming up short.

Last week Hammerson, which owns the Bullring shopping centre in Birmingham, said it had only managed to collect 16% of the rent that was due for the third quarter.

Meanwhile, fellow shopping centre owner British Land managed to scrape together 36% of its rent, and Landsec collected 60%.

The success of Segro’s rent collectors largely speaks to the kind of tenants it rents to. Unlike Hammerson and British Land, Segro does not own high street shops.

Instead, one of its main investments is the Slough Trading Estate, one of the biggest business parks in Europe.

The 93% it has managed to collect also excludes £9 million that it has agreed that tenants can pay in the second half of this year instead.

The company is due to publish its full results for the first half of the year on the first Monday of August.

Its shares dropped 0.8% on Wednesday morning.

Bosses said they had managed to collect 98% of the £88 million rent that was due for the second quarter of this year across the UK and Europe. Around £1.5 million has not yet been collected, when accounting for the £13 million that customers have agreed to pay later.

PA