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Monday 9 February 2009 10.03pm
It's a shame rents get put up which enevitably ends up being the reason many older traders needs to leave. It's sad that many parts of our society don't seem to put value in anything other than profits and margins these days.

As MP Simon Hughes said of the development/destruction at Borough Market "We do not improve our future by destroying our valuable past." and it really is a travesty that smaller independant companies are losing out.

It will be a sad day when Starbucks arrives at Borough Market just because it can afford to pay the rents demanded in the area.
Monday 9 February 2009 10.38pm
The Trustees of the Borough Market are a charity, and own the freehold of their site as part of their permanent endowment. However, it looks as though they barely break even on running the market, and rely on their income from investment properties to fund their capital improvements. The charity appears to have practically no free reserves not tied up either in the main market buildings or their investment properties of neighbouring buildings.

So if they are going to fund the various projects needed over the next few years when trading is bound to be hit by the Thameslink project, they will presumably need to decide on a mixture of:
(a) increasing income from pitch fees in the market,
(b) increasing rents on the investment properties,
(c) borrowing against the investment property assets,
(d) considering whether to sell any of the investment properties.

or some combination of the above.

In the current state of the property market, (d) looks like a non-starter, and I assume they will have some difficulty getting a good deal on (c) except for properties occupied by "blue-chip" tenants (e.g. are they Paul Smith's landlord?).
Monday 9 February 2009 11.06pm
The pitch prices, for a standard 8' frontage, are 35 for Fridays and 45 for Saturdays. For the majority of traders, would doubling this rate really drive them away? It doesn't seem excessive compared to the cost of renting a shop, rates, etc. I'm more concerned about the influx of shops near Brew Wharf for which planning has just been agreed. They'll find it hard to turn down chains, unless there is a specific clause to prevent this.
Tuesday 10 February 2009 11.23am
Hey coming to Borough market for the 1st time on Saturday - Any recommendations for pubs/bars for a few on Saturday afternoon plus any stalls you really recommend to purchase their foods/goods!!!

many thanks
Tuesday 10 February 2009 11.47am
Lang Rabbie wrote:
The Trustees of the Borough Market are a charity, and own the freehold of their site as part of their permanent endowment. However, it looks as though they barely break even on running the market, and rely on their income from investment properties to fund their capital improvements. The charity appears to have practically no free reserves not tied up either in the main market buildings or their investment properties of neighbouring buildings.
So if they are going to fund the various projects needed over the next few years when trading is bound to be hit by the Thameslink project, they will presumably need to decide on a mixture of:
(a) increasing income from pitch fees in the market,
(b) increasing rents on the investment properties,
(c) borrowing against the investment property assets,
(d) considering whether to sell any of the investment properties.

or some combination of the above.

In the current state of the property market, (d) looks like a non-starter, and I assume they will have some difficulty getting a good deal on (c) except for properties occupied by "blue-chip" tenants (e.g. are they Paul Smith's landlord?).

It's the interesting stalls and buildings that make borough market , if all that could be said for it was that the trustees were making lots of money , no one would be interested.
Tuesday 10 February 2009 12.55pm
Just wanted to point out this thread, for anyone who is interested:

http://www.london-se1.co.uk/forum/read/1/104389
Tuesday 10 February 2009 1.19pm
How do the prices for pitches compare to say East Lane?
Tuesday 10 February 2009 1.24pm
Davies wrote:
janefs wrote:
Davies version is not the full story!

Davies's version is not the full story because Davies doesn't know the full story of the rent increases. As you have implied that you do, please tell all!
I didn't imply I knew 'all'. In my experience, there are always several sides to various 'events' that happen in BM, subject to whoever one happens to be speaking to at the time, and which trader is involved - for example the situation leading to the recent departure of the Chief Executive. BM is an odd mix of [sometimes conflicting] interests and agendas that give rise to rumours and intrigue on a regular basis and 'the truth' may be in there somewhere!

For various reasons, including the disruption of the viaduct construction, the rising rents, the generally dire economic situation, reduced trade etc, all traders are facing 'challenging' times. As Lang Rabbie pointed out there currently appears to be little flexibility of choice for the Trustees to produce income other than through rents, and some traders may currently be operating on such slim margins that they will not be able to afford any increase - even a reasonable one.
Tuesday 10 February 2009 3.49pm
various projects needed over the next few years,
what are they

I thought the issue with Thames link was having to move stalls out of the way which network rail would help with the cost of, as the trustees of the market supported Thames link.


and They get that ugely new space out of it.
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