Bosses at the gigantic British Land Company Plc have taken a 20% pay cut and given the cash to charity and to help staff at retailers struggling due to the COVID-19 lockdown.
The property company has already been hit hard by the economic turmoil surrounding the coronavirus outbreak and given tenants a rent holiday to help them get through the crisis – even though it will cost the firm about £43million in lost revenue.
And now its board of directors have decided to waive 20% of their base salaries or fees for an initial period of three months from April 1, 2020, and will allocate this cash to its Community Investment Fund “to support those most in need” including workers whose livelihoods have been affected”.
A company statement to the stock exchange said: “At British Land, we recognise the very material impact that COVID-19 is having on the communities at our places and are committed to supporting them through this challenging time.
“Reflecting this, we are redirecting the remaining budget within our FY20 (2020 financial year) Community Investment Fund to some of those most affected.”
The British Land Community Investment Fund has been running for more than 10 years, providing funding for charities and community partnerships in and around the firm’s location.
The company's huge portfolio includes Meadowhall shopping centre in Sheffield, the Broadgate Estate development in London, and the Drake Circus Shopping Centre and neighbouring The Barcode leisure complex in Plymouth.
The firm said: “The £1.3million fund for the FY21 has already been established and to provide additional support in these challenging times, the board of directors will be waiving 20% of their base salaries or fees for an initial period of three months effective April 1, 2020, which the company will be allocating to the Ffund to support those most in need.
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“Our communities team has worked with our network of local partners to identify how we can most effectively support them now and in the coming months, refocusing many existing community programmes to respond to the crisis.”
British Land said it is funding expert, strategic advice from the CASS Centre for Charity Effectiveness for the leadership of “many of its community partners”.
“We are also funding bespoke programmes, providing employment support to help staff at our retailers and suppliers in their response,” the firm said.
“In London, this includes working with the East London Business Alliance to help redirect workers to areas where there is a clear need.
“Elsewhere, in Plymouth, Edinburgh and Sheffield for example, we are providing long-term skills and employment support to people whose livelihoods have been affected.
“At Broadgate, Regent's Place and Paddington Central we are supporting local organisations, such as Providence Row homelessness charity, North London Cares and Pursuing Independent Paths, with technical equipment and digital upskilling to ensure that they can work remotely.
“Through the National Literacy Trust we are providing funding for reading resource packs to be directed to vulnerable families in 20 of our locations.
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“Across our campuses and at a number of retail assets we have made car parking freely available to support NHS staff and through our campus networks, we are connecting occupiers with local volunteering opportunities provided by partners.
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“We have also increased our contributions to the charities we work most closely with, including doubling our annual donation to Shelter's housing advice line and support for LandAid.”
British Land, which posted a loss of £404million for the six months to November 2019 due to closing shops, has acted to protect its remaining tenants.
The company has told its small tenant shops, restaurants, cafes and leisure businesses they don’t have to pay any rent between April and June, a £3million hit to the business.
For larger tenants “experiencing financial challenges because of COVID-19” British Land deferred the March quarter day rents and spread repayment over the six quarters from September 2020 – which will cost it about £40million.
Dividends have been suspended as a result.