[2023] UKUT 153 (LC)

The claimant, a national jewellery retailer, operated a retail store in 18 Charter Place, Watford (“the reference property”), which was acquired by the respondent for a town centre regeneration scheme under the Watford Borough Council (Land at Charter Place and High Street, Watford) Compulsory Purchase Order 2014 (“the Order”). The claimant’s leasehold interest was acquired by a General Vesting Declaration on 17 November 2015, which is the valuation date.

On 16 June 2016 the claimant relocated to 23/24 Intu Watford (“the relocation property”) from where it recommenced trading on 1 July 2016. For simplicity and consistency we will refer in this decision to ‘Intu Watford’ notwithstanding that the shopping centre was launched as the Harlequin Centre and latterly renamed Atria Watford. Compensation for relocation costs and pre-reference professional fees had been agreed. The issues remaining in dispute related to claims for temporary and permanent loss of profits, the latter arising from increased overheads in the relocation property. The respondent accepted that there was a temporary loss of profit for which compensation was due, although disputed the amount claimed, but denied that compensation was due for permanent loss of profit.

We made an accompanied inspection of the relocation property and the surrounding retail area on the morning of 12 January 2023. We returned to Watford on 1 February 2023 for an unaccompanied external inspection of properties in the High Street, Watford which had been referred to in expert evidence.

The claimant was represented by Mr Jonathan Easton and the respondent by Ms Rebecca Clutten, and we are grateful for their submissions. The hearing took place in court on 17, 18 and 20 January, with closing submissions heard by remote video link on 9 March 2023.