Lease Restructure

Oct 28, 2019Case Study

Client:

Food retailer

Brief:

To manage out and dispose of a long leasehold liability part vacant and part sublet to two poor covenants.

Services Requested:

The property had over 50 years remaining at a full rack rent, with sub-leases expiring in two years. That primary occupier had indicated they were not going to renew.

Solution provided:

The main sub-tenant had a perception that their lease had value, whereas in reality, it was a liability because of the short term remaining and the dilapidation costs they would have to meet. Discussions with the sub-tenant led to an agreement to surrender their lease but only at the point of a new tenant being put in place.

A new tenant was identified for not only the sub-tenants space, but also for the vacant first floor. Terms were agreed with the established regional retailer for a new 10 year lease which would see the building refurbished and a significant fit out undertaken.

Previously, negotiations with the freeholder had not progressed because of the short-term on the sublease, the vacant space and the condition of the building. The restructuring, therefore, removed these impediments opening up a surrender of the property and a total release of liability for the client.

About Us

CORE Consult delivers holistic solutions to Corporate Occupiers for their Real Estate needs. Our focus is on the Occupier and solving their needs and problems for operational and surplus space.

Location

Main Office:
69 Derwent Drive, Maidenhead, SL6 6LE

London Office:
53 Welbeck Street, London, W1G 9XR

gec@core-consult.co.uk

01628 782639