RENTAL DISPUTE: The Cadogan Estate — the aristocratic private property empire controlled by Charles Cadogan, the 8th Earl Cadogan — is reported to be taking advantage of a rent review clause in a contract to raise the rent on Harvey Nichols’ flagship Knightsbridge store. According to the Times of London, Dickson Poon-owned Harvey Nichols pays around 4.4 million pounds, or $7.1 million at current exchange, a year to the Cadogan Estate, which owns the land that the department store sits on, and whose portfolio comprises 93 acres of land in west London, including Sloane Street and the King’s Road. The whole property empire is purported to be valued at around 3.5 billion pounds, or about $5.7 billion.
The rent was last raised five years ago, seven years after the store — which has existed in Knightsbridge since 1831 — sold its land to the Cadogan Estate and then leased it back.
This story first appeared in the December 17, 2012 issue of WWD. Subscribe Today.
The Times reported on Sunday that Harvey Nichols is resisting the latest proposed rent increase and that both parties have hired specialist advisers to handle the dispute, which is expected to go to arbitration in the new year. The conflict would be handled by an independent expert from the Royal Institution of Chartered Surveyors.