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, lease renewal and valuation expertises |
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| Tanners Drive,
Milton Keynes |
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| Brief |
A French manufacturing
company faced an increase in its rent at review
on a 35,000sqft warehouse in Milton Keynes. Any
increase in rental was going to be a major threat
as the property was vacant and we were looking
to dispose of the unit. The landlord was demanding
an additional £65,000 per annum in rent.
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| Solution |
Having researched the market we
advised the client that there would be a minimal
uplift in passing rent. However the landlord was
still seeking a sizeable uplift so we recommended
that the matter be progressed to a third party
Independent Expert for determination. |
| Results |
The Independent Expert gave a decision
of £150,750 compared to the landlord’s
original demand of £205,000 against an existing
rent of £140,800 per annum, thus saving
nearly £300,000 for the client over the
following five years. Our tactical Calderbank
offer of £154,000 per annum prior to submissions
meant that we were also able to claim costs against
the landlords |
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| Communications
House, Leicester Square |
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| Brief |
A client from the utilities sector was faced
with a rent review in a rising market. Any increase
in costs would severely affect the company’s
finances. How could we cut the landlords demands?
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| Solution |
Having researched the market and
come to an impasse in negotiations we made an
application to the RICS for the appointment of
an Independent Expert. We focused the landlord’s
attention by forcing the matter to arbitration
and making an aggressive Calderbank offer. |
| Result |
We cut the rent demand from £1,064,000
to £825,000 against an existing rent of
£796,000 thus saving £1,195,000 for
our client over the following five years. |
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| Notting Hill Gate,
London W11 |
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| Brief |
We manage a large mixed retail/office
portfolio in Notting Hill Gate advising a property
company on rent reviews, lease renewals and general
strategic advice. |
| Solution |
Having reviewed the company’s
property strategy, we decided to increase Zone
A rates and thus the investment value of the block
by increasing the rental value of a major retail
unit. |
| Result |
We increased the rent from £66,000
to £97,000 per annum thus implanting considerable
rental growth in the subject block. Our continued
involvement has meant a doubling in the rent roll
from £2m per annum (when we took over in
1998) to a current day total of 4m per annum. |
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| South Audley Street,
London W1 |
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| Brief |
One of our clients from the leisure
sector held the lease on a ground floor restaurant,
retail unit and five upper floors flats. Our client
was keen to renegotiate the terms of the existing
lease and maintain the existing ground floor restaurant
only. |
| Solution |
We reviewed our client’s property
strategy and approached the landlord to renegotiate
a new longer lease term. This was favourable to
the landlord, as well as the client as we negotiated
a lower rental on the ground floor restaurant
than was previously payable. |
| Result |
The landlord’s rent demand
was cut from £150,000 to £100,000
per annum. The backdrop to negotiation meant that
the landlord did not have to renegotiate the terms
of our client’s existing lease, as it was
not up for renewal. However, we successfully negotiated
terms that were of benefit to both parties, with
significant monetary savings on behalf of our
client. |
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| Stratford Place,
London W1 |
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| Brief |
LSM Partners was instructed to
negotiate the lowest possible rent at review on
behalf of an environmental consultancy in Stratford
Place, London. The landlord was demanding an additional
£95,000 per annum in rent. |
| Solution |
We conducted a full investigation
of rental values within Stratford Place and the
surrounding area, and advised our client that
there was a strong case for limiting the rental
uplift. At the initial stage we negotiated the
rent down to £180,000 per annum but advised
the client that by taking the case to a third
party Arbitrator, there was further scope for
a reduction in rent. |
| Result |
After providing formal submissions
and counter submissions on behalf of the client,
a rental figure of £158,000 per annum was
eventually awarded compared to the landlord’s
original quoting rent of £250,000 per annum.
We therefore saved the client £460,000 over
the course of the following five years. |
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