Author Archives: Nick McCalmont-Woods

IBTimes

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Objective

IBTimes had outgrown its existing 2,200 sq ft offices in Canary Wharf and needed to move to larger premises. Having originally let IBTimes its existing offices, McCalmont-Woods was tasked with the job of identifying new offices on the Canary Wharf estate for IBTimes to move into.

 

Services Provided

A comprehensive market research exercise was undertaken leading to McCalmont-Woods inviting landlords on a select number of buildings to submit RFPs for consideration. The initial long-list of building options was then reviewed against a set of key criteria agreed with IBTimes and subsequently reduced to a shortlist of preferred options. Detailed cash-flows were produced on each option to assist with overall cash-flow management including fitting-out; timetable for relocations and last but not least, the rent and tenant incentive package to be agreed.

 

Result

McCalmont-Woods successfully negotiated the acquisition of 6,280 sq ft on a new 5 year lease for IBTimes UK on the part 34 floor at Citi’s 25 Canada Square.

 

Client Benefit

The premises acquired provided fully-fitted accommodation for over 80 staff which IBTimes to keep its capex costs to a minimum at the same time as providing room for future business growth.

 

Lease Exit / City

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Objective

Dominion Corporate Services Limited wished to exit its offices in 23 College Hill, EC4 and so in March 2013 appointed McCalmont-Woods to manage the disposal of its 6th floor lease which still had 5 years to run to March 2018, subject to a 3 year tenant’s break option. The £55.00 per sq ft rent passing was subject to a rent review in April 2013.

Services Provided

McCalmont-Woods devised and implemented a marketing campaign aimed at occupiers interested in the opportunity to benefit from the flexible lease term available and also the potential significant capex savings that would result from being able to re-use Dominion’s existing high quality office fit-out. In addition McCalmont-Woods formulated a strategy for negotiating the upward only rent review against Dominion’s immediate landlord in order that the outstanding lease event would not impinge on Dominion’s ability to dispose of its surplus lease.

Result

McCalmont-Woods succeeded in identifying a US based investment bank to take an assignment of Dominion’s lease within four weeks from commencement of formal marketing.

Client Benefit

Dominion achieved c.80% lease cost savings and was also able to recoup seven months rent deposit on completion of the lease assignment.

HQ Acquisition / City

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Objective

Leading specialist liability insurance provider Marketform identified the need to relocate from its existing premises in Lime Street, EC3 to larger, higher-specification premises to support the burgeoning needs of the business.

Marketform’s objective was to occupy a single floor of 12-15,000 sq ft within the ‘Lloyds Triangle’. The premises needed to be of a regular configuration and capable of accommodating a minimum of 50 staff, with provision for 25% headcount expansion over the next 4-5 years.

 

Services Provided

A realistic budget was determined and after an extensive market search, a larger, self-contained building providing 20,000 sq ft was identified as a potential suitable option. Nick established that the building’s owner, Capital & Counties plc, wanted to sell its freehold interest in the property and that in order to maximise investment value, it needed first to secure a letting. This provided the opportunity for Nick to leverage a highly favourable transaction for Marketform.

 

Result

Nick was able to negotiate a new 10-year lease on the property at a low initial rent that would rise each year up to the rent review in five years time. Also at this time the tenant would benefit from an option to determine the lease. In the event that the tenant elected to retain occupancy, no rent would be payable in year six — effectively allowing Marketform to benefit from an 80% gearing after the reviewed rent had been determined.

The ground floor was sub-let on a short-term lease to reduce Marketform’s exposure to property costs while affording the future flexibility needed to expand its operations in the building.