18th November 2021
Without Prejudice
Reference IL Ref 0631
For the attention of:
- Yoo Capital – Mr Lloyd Lee
- The Hammersmith & Fulham Council – Council Stephen Cowan
The Meaning and Significance of Yoo Capital’s Alleged Consultation Documents
Dear Sirs,
The Shepherd’s Bush Market Tenants’ Association (SBMTA) wrote to both Yoo Capital and the Hammersmith & Fulham Council on the 4th of November 2021 - Reference IL Ref 0621 regarding the meaning and significance of certain documents which Yoo Capital have been allegedly urging Shepherd’s Bush Market Tenants to sign.
Please refer to PDF Attachment 1 or the DropBox Link: -
https://www.dropbox.com/s/inmbpur1dsv2ncz/4th%20November%202021%20-%20Reference%20–%20IL%20Ref%200621%20-%20Concerns%20regarding%20Yoo%20Capital%20seeking%20signatures%20from%20the%20Shepherd’s%20Bush%20Market%20tenants%20%20.pdf?dl=0
Whilst the Shepherd’s Bush Market community wait patiently for both the Hammersmith & Fulham Council and Yoo Capital to respond to the queries raised in the letter dated 4th of November 2021 - Reference IL Ref 0621, Yoo Capital continue in their concerning endeavours despite the tenants’ expressed confusion surrounding the ambiguity of these documents.
The SBMTA asks both the Hammersmith & Fulham Council and Yoo Capital as to whether they acknowledge the concern, that market tenants who have been approached to sign Yoo Capital’s documents are not satisfactorily aware of the meaning and implications of these papers. Further to this, as some market tenants may have not had the option to present these documents to their own solicitors, there is the concern that they may have placed at a disadvantage of not having the advice and guidance of their independent solicitor, as they should have.
The SBMTA wishes to further its enquires, to that of the previous correspondence sent on 4th of November 2021 - Reference IL Ref 0621, and ask both the Hammersmith & Fulham Council and Yoo Capital to study pages 6 & 7 or alternatively refer to the Dropbox link:
https://www.dropbox.com/s/gjfzmbki0uqh3ai/Yoo%20Capital%20HEADS%20OF%20TERMS%20Document.pdf?dl=0
Would the Hammersmith & Fulham Council and Yoo Capital please answer the following queries relating to the document seen on pages 6 & 7, please?
Firstly
Does Yoo Capital and the Hammersmith & Fulham Council recognise the shown document to be written by Yoo Capital?
Secondly
Does Yoo Capital and the Hammersmith & Fulham Council consider the shown document as a legally binding document for those parties that sign the document?
Thirdly
If the shown document is written by Yoo Capital, then what measures were taken, and permitted, to ensure that each Shepherd’s Bush Market tenant would have a comprehensive understanding of the document before being requested to sign the document?
Fourthly
Does the Hammersmith & Fulham Council and Yoo Capital recognise whose signature is on the shown document? If so, (i) can it please be made known who the individual is, and (ii) if the individual holds a position within Yoo Capital can that please be made known as to what position?
Fifthly
Does Yoo Capital and the Hammersmith & Fulham Council recognise that the proposed ‘Open Market Rent Review’ term, indicated in the document, under point h, clause 7, offers far less favourable prospects to market tenants, compared to that of the current arrangement (set out in the Transport for London leases), which the Shepherd’s Bush Market tenant hold and are entitled to renew, with the same terms, by serving the landlord a Section 26 Notice?
To remind the reader, the TfL rent review terms and conditions within the leases reads as shown in the following Dropbox linkand on page 4, below:
https://www.dropbox.com/s/rvdc3o0kzouhaj8/TfL%20Rent%20Review.jpeg?dl=0
Those market tenants who currently hold a TfL lease with the inclusion of the 1954 Landlord & Tenant Act, have the entitlement to instruct their solicitor to serve the landlord a Section 26 Notice, insisting on exactly the same terms and conditions as their existing lease. Therefore ensuring that market tenants may retain and afford to run their market businesses for the full term of their next future lease.
The concern which torments much of the market community is that under the heads of terms, referenced in the document (seen on pages 6 & 7 or the following Dropbox link), market tenants may be legally bound to pay ‘open market value’ upon the midpoint of the future lease.
https://www.dropbox.com/s/gjfzmbki0uqh3ai/Yoo%20Capital%20HEADS%20OF%20TERMS%20Document.pdf?dl=0
This may result in market tenants being unable to survive the huge rent increases. Subsequently, with limited or no prospect to afford the rent payments of their premises, and limited prospects to assign the lease onto another, and sell up, the market tenants may be faced with the likely and tragic prospect of abandoning their Shepherd’s Bush Market businesses by the year 2030, with nothing.
Please see below the TfL lease terms and conditions regarding the IPD rent review index.
https://www.dropbox.com/s/kt8eyyseychdpla/TfL's%20lease%20stipulations%20regrding%20the%20Rent%20Review%20.jpeg?dl=0
Developers may argue that change must occur, however, the Hammersmith & Fulham Council could strive for change for the better.
Developers may claim that the Shepherd’s Bush Market businesses do not currently provide the developer with a sufficient rental income, however, the Hammersmith & Fulham Council could consider whether the requirement of the developer achieving its rental income ambitions is worth the loss of Shepherd’s Bush Market and the loss of the long-standing retail market businesses within.
It is apparent for much of the public to see that Shepherd’s Bush Market has recently lost too many valued businesses.
The Hammersmith & Fulham Council could protect the remaining retail market businesses and not consent to any proposal that may squeeze market traders out of the market.
Issuing unfavourable lease terms, that may lead to many market tenants neither being able to afford nor complete the lease term, is dreadful.
The Hammersmith & Fulham Council could strive to ensure the affordability and ethnic diversity within the Shepherd’s Bush Market.
Will the Hammersmith & Fulham Council implement safeguards to ensure that the retail market businesses will not be pushed away from this market land area?
The SBMTA awaits Yoo Capital and the Hammersmith & Fulham Council’s response relating to the SBMTA’s enquiries raised in this and in the previous correspondence dated 4th November 2021.
Yours sincerely,
The Shepherd’s Bush Market Tenants’ Association
For sight of the full SBMTA documentation please view: