Stonegate – Pubs Code non-compliant MRO offers
Stonegate has offered to revise the terms of rent review clauses in its MRO (Market Rent Only) agreements, which were found to be non-compliant with the Pubs Code. The Pubs Code is a set of regulations designed to protect the rights of pub tenants in relation to their pub-owning companies.
The revision would ensure that Stonegate’s MRO agreements comply with the Pubs Code, specifically with regard to the timing of rent reviews and the provision of the necessary information to tenants.
This offer follows an investigation by the Pubs Code Adjudicator, which found that Stonegate’s MRO agreements did not fully comply with the regulations.
Stonegate has stated that it is committed to working with its tenants and the Pubs Code Adjudicator to ensure compliance with the Pubs Code.
Stonegate has written to its lessees on those agreements to confirm it will not be enforcing the upwards-only open market rent review and offering to remove it from their agreement. It has also offered a financial contribution towards legal costs for any who take up the offer.
Other pub companies (or pub-owning businesses under the pub’s code) are expected to follow suit.
If you are an MRO tenant or lessee with an upwards-only clause please email us here
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