River IslandHow a reduction in rateable value of Midsummer Arcade led to savings of over £1m Minimising River Island’s rates liability on this property through innovative ideas
- Location 40-42 Midsummer Arcade, Milton Keynes
- Key figures Midsummer Arcade reduction of 12.2% in rateable value and total savings of £1m
- Contact Jitu Bodhani, +44 (0) 20 7338 4076
- River Island benefited from a successful reduction in rates liability. In addition further benefits were realised when this exercise was replicated on the remainder of their large retail units in the South East portfolio, resulting in savings of over £1m.
- This was part of a continual exercise for the business to look at their overheads and identify areas where they could be reduced.
- This was a very large retail unit where the Valuation Officer had not considered quantum allowance (where two large units were taken and merged into one unit). The challenge was to reduce the client's Zone A price and seek a quantum allowance.
What we did
- We undertook initial research.
- We recommended that an appeal be made on the assessment proposed by the Valuation Officer and proved that the Zone A basis was excessive.
- It was also argued that there should be a quantum allowance for the size of this property
- We successfully negotiated the appeal and obtained a reduction of 12.2% in rateable value, saving the client over £1m during the revaluation period.
- We then replicated this argument across the South East portfolio of large retail units.