ONE of Britain’s biggest commercial landlords is poised to strike a ground-breaking deal to provide comprehensive financial assistance to cash-strapped high-street retail chains.

Prudential is holding talks about cutting service charges on shopping centres and retail parks under its management and is considering reducing rents in cases where tenants are suffering extreme hardship.

Martin Moore, managing director of Prupim, the Prudential’s property arm, told The Sunday Times: “Our approach has historically been to provide assistance where companies holding existing leases with us demonstrate financial hardship.

“We have allowed payment of quarterly rents on a monthly basis to those within this category, and partnered with other commercial landlords to take action on rents for smaller retailers last November.

“However, in response to the number of requests received during the past quarter and the continuing difficult high-street environment, we are again looking to see what payment structures could be provided, and at what other steps we can take to assist the sector.”

Moore added: “We are also looking to see what action we can take on addressing the cost of services provided within the shopping centres and retail parks that we manage.”

Prupim has investments in about 1,000 properties, with 6,000 property occupiers in the UK, Europe, North America and Asia. The real-estate assets managed by Prupim include 409 retail and leisure properties, including 12 shopping centres in the UK.

Prudential declined to comment on the details of its plan because it is still being finalised. An announcement is expected in the next few weeks.

A consortium of retailers, led by Sir Philip Green, owner of BHS and Top Shop, and the Carpetright boss Lord Harris, have been pushing landlords to help retailers by allowing them to pay rent monthly rather than quarterly during the present market volatility.

Times Recommends

• C&G axed - 1,660 jobs to be lost
• UK house prices rise 1.1% as buyers return
• Mixed reaction to US banks repaying bailouts