Cooke, Young & Keidan LLP is a leading boutique firm of commercial disputes lawyers. CYK specialise in undertaking substantial English Court litigation, international arbitration and alternative dispute resolution, working for businesses in the UK and abroad as well as for high-net-worth individuals.

Brief

Faced with a lease expiry in twelve months’ time in a building earmarked for redevelopment and in a state of obvious managed decline by the landlord, CYK turned to McCalmont-Woods for help in acquiring new office premises in the City of London. The brief was to acquire office space that would be of a much higher quality and more efficient to occupy than existing, while at the same time providing CYK with room to accommodate future business growth.

Since CYK wished initially to consider the merits of relocating across a wide geographical area, a relocation plan and timetable was formulated which enabled CYK to consider the merits of 50 available properties before a longlist of potential options was eventually decided upon. Various on-site inspections were then undertaken to narrow down the search focus to a shortlist of preferred property options.

An option to acquire premises which had been pre-fitted for another law firm was discounted after pre-acquisition due diligence surveys revealed the existing M&E services were no longer fit for purpose and the extensive internal partitioning in-situ did not provide sufficient sound attenuation for a law firm. Consequently, focus shifted rapidly to a consideration of other suitable potential Plan B options identified during the initial research phase which importantly, could be leased and fitted-out from new within CYK’s proposed acquisition timetable.

Outcome

McCalmont-Woods successfully concluded negotiations for CYK to acquire 11,000 sq ft of newly refurbished Grade A offices at 21 Lombard Street, EC3 on a new 7 year sublease from UBS producing £1.16 million cost savings for the business. CYK’s new office premises enjoy natural light to all elevations and following a high-quality fit-out, provide CYK with prestigious modern offices including extensive meeting room space and a roof terrace, arranged on a efficient single floor in the heart of the City.

The transaction highlights two important issues for corporate occupiers:

1. there is a natural assumption that pre-fitted offices will deliver significant cost-savings but this can be a false assumption particularly if the condition of the base build services infrastructure is poor and replacement parts are difficult to source or obsolete. Any assessment of the efficacy of acquiring pre-fitted offices will depend upon the quality and state of repair of the existing fit-out. When considering the acquisition of pre-fitted offices we recommend corporate occupiers undertake all necessary due diligence surveys early on in the acquisition process (and before heads of terms are agreed) as this will influence lease negations and determine whether they should continue or be terminated.

1. by identifying potential Plan B property options at the outset of the relocation process it was possible to effect a rapid change in the direction of lease negotiations without impacting the timetable for acquisition. This is incredibly important if the catalyst for relocation relates to a lease expiry event.

Town Legal LLP is a boutique planning law firm set up at the end of 2016 by some of the leading figures in the planning law sector. Based in London the firm advises on all aspects of planning law, across England and Wales and acts for a range of clients including developers, landowners, and public authorities. One of Town Legal’s partners is a leading planning barrister, which is one of the things that sets Town Legal apart and provides added value to its clients, in terms of the quality and speed of advice. The firm was voted the country’s most highly rated planning law team in the country in Planning Magazine’s 2019, 2020 and 2021 annual law survey.

Brief

Town Legal occupied a small office at 1 London Wall Buildings (close to Moorgate and Liverpool Street stations) in the core of The City on a relatively short-term (as befits most start-ups) sublease from another tenant in the building. Its immediate landlord had the opportunity to exercise a break option and reduce its own footprint and cost base conditional upon delivering vacant possession of the entire premises at the date of termination to include Town Legal’s office space. Since the building was in a state of managed decline (with poor common parts) Town took the decision to look for new premises elsewhere and tasked McCalmont-Woods with managing the relocation process. A thorough review of the office market identified various options considered potentially suited to relocation albeit with a clear favourite reflecting the partnerships key selection criteria of location, size & configuration and lease & rental terms.

Outcome

Negotiations were successfully concluded for Town Legal to acquire circa 5,000 sq ft newly refurbished Grade A offices at 8-10 Throgmorton Street, EC2 on a new 10 year lease (incorporating a fifth year tenant only break option) from ICL Pension Trust Limited. Town’s new office premises benefit from high ceilings and excellent natural light and following a high-quality fit-out (by Peldon Rose) now provide Town Legal with prestigious modern offices (as befits a leading boutique law firm) in the heart of the City of London.

 
Clare Fielding, Partner and co-founder
“Nick recently advised us (Town Legal LLP – we are a specialist planning law firm) on taking a 10 year lease of 5,000 sqft at Ten Throgmorton Avenue EC2. Nick was an absolute pleasure throughout, and we had the benefit of his wise counsel, commercial nous and great sense of humour. From a tenant perspective, we couldn’t recommend him more highly.”