Lease re-gear
Lease re-gear case study
MAPC were initially contacted by a long-standing client to assist in the renegotiation of a lease contract over an office building. At the same time as the lease was being re-geared, our clients agreed to form a joint venture business with one of their partners to allow them to deliver a particular contract.
The result of the JV business establishment meant the original office upon which we had been instructed to re-gear the lease became surplus to requirements, meaning we were now engaged in a lease surrender negotiation. However, at the same time, the original business needed a smaller office, which we were instructed to procure. In addition, the JV business also needed accommodation and MAPC were also asked to procure that space. However, the lease for the JV business needed to reflect the contract terms they agreed on the delivery of their own contract, which produced an unusual property lease.
Each of the offices required and the one surplus to requirements were all on the same business park, owned by the same landlord, with MAPC dealing with the lease surrender of the existing unit, where dilapidation advice was required. MAPC hired a trusted building surveyor to assess the potential dilapidation claim, contest and then settle the claim, whilst we also negotiated an exit package with the landlord. Two new leases were agreed for the JV business and also our original client.
The initial instruction was relatively simple but quickly turned into a complex series of negotiations around surrender and lease acquisition, but the rental rates required verification to ensure our client was agreeing a market rent and incentive package. The verification process involved a search of the market, viewing alternative spaces, obtaining proposals on short-listed options, and negotiating with other landlords to ensure we could prove value on the terms we were agreeing on the preferred buildings, but also had a fallback position should those negotiations falter and we needed to relocate to a different location.
The client secured multiple savings in terms of rent-free incentives, reduced rental rates on the acquired space and a satisfactory surrender negotiation and resolution of a terminal dilapidation claim for the property being relinquished.
WHAT OUR CLIENTS SAY
“Mark has worked with Edrington Group for nearly 20 years in which time he has provided a full range of property advice across the UK, Europe, Middle East, US and Asia. This has involved him acquiring and re-gearing leases for our various offices, managing fit outs, resolving rent reviews and generally doing everything and anything required for our leased offices. ”
Chris Hendry, Head of Indirect Procurement, Edrington Group
"Mark has supported us with managing our UK and Nordics depot and office property portfolio for circa 20 years. He has interacted seamlessly with our external legal advisers and colleagues at all levels and functions across our business to help us achieve best possible outcomes."
Louise Harrison, Head of Legal, Aggreko Europe North
“Mark helped us succeed in effecting sequential moves of offices in Glasgow, Edinburgh and Belfast; each against a background of challenging timescales, an uncertain space market and a re-defining of the office environment. His market awareness, commercially minded outlook and the ability to support across a number of specialisms undoubtedly contributed to us achieving that efficiently and importantly, whilst we maintained business as usual on behalf of our Clients.”
Scott Ewing, Regional Director, Gleeds
“We have been working with Mark for more than 20 years. During that time he has helped us negotiate initial office leases in Glasgow, Liverpool and Aberdeen, renegotiate office leases, completed rent reviews, carried out market analysis studies to assist us when looking for alternative locations, coordinated dilapidation negotiations and, also, managed a recent office refurbishment for us.”
Eddie McDermott, Finance Director, V Ships UK Ltd
“Mark has worked closely with our business for over 20 years, having been involved with everything to do with various office leases, across various locations, as we have moved through the growth and contraction phases of business cycles. We find he has been an excellent business partner and is always able to give sound advice, provide a useful sounding board as we decide how to arrange our various leases, before delivering what the business needs. ”
Al Arnot, Finance Director, Concept Systems Ltd
"We have worked with Mark for more than 5 years, since he was
introduced to us by a trusted adviser. We have multiple offices, each
with different issues and needs. Mark understands our business really
well and has the expertise and experience we need to advise us on all
aspects of our tenancies.
We regularly refer Mark to our clients."
David Smith, Managing Partner, Henderson Loggie
"We asked MAPC to assist us in moving from a 3-storey, compartmentalised office into a single open plan unit on the edge of Edinburgh city centre, with the opportunity to grow or shrink as required. Mark managed to satisfy all our objectives with finding the new office. In addition, he introduced us to a designer for our fit out and managed the whole project, which included procuring a contractor and other consultants to help design and build what we needed."
David Miller, Managing Director, Alpha Data
"I have known Mark in a professional capacity for a number of years,
most recently working with him on a complex rent review case, where he
was directly advising a corporate client.
Mark's knowledge of
the commercial property market is extensive across all market sectors
and I would highly recommend him for all lease advisory work,
particularly rent reviews, lease renewals and lease restructuring, where
you may be aiming to add value to existing properties or portfolios."
Eric Thomson, Thomson Property Consultants Limited
"I have worked with Mark for seven years; simply, I would not attempt a deal without his knowledge, insight and intelligence. Mark has your back."
Neil McCallum, Managing Director, Critiqom
"Mark has provided full occupier services to every business that I have been associated with- his ability to report efficiently on niche markets providing diligent, conscientious and professional advice in the most thorough manner, makes decision making more informed and painless. His contacts and specialist knowledge are extensive and lead to an ‘over and above’ service."
Joseph Madden, Director, PMP
"Mark has worked with CDN through several reincarnations providing advice primarily on rent reviews, but also considering potential relocation options. He has good knowledge of the property market, is technically very good, continually keeps us up to date and is a tenacious negotiator, who has always delivered good results for us. We are pleased to have him as part of our wider team and would have no hesitation in recommending him to others."
Gayle Watson, Chief Executive, Scottish Colleges.
"I have worked with Mark for a number of years, where he has acquired (sometimes substantial) offices for us, re-geared leases and undertaken rent reviews in Aberdeen, Glasgow and Newcastle. Despite various challenges arising, he has provided good advice, with good knowledge of the markets, and always been on hand to resolve problems. I have been impressed with his service getting the best deal possible, have enjoyed working with him and am happy to recommend his service to others."
Joe Hannon, Head of Real Estate Services, AMEC Foster Wheeler plc