Background
Cazenove Capital Management occupied 34,000 sq ft at 12 Moorgate, EC2 under a 25-year lease dating from 1998. Prior to selling its freehold interest in the property, landlord New Star Property Asset Management sought to increase the annual office rent payable at review from £47.00 per sq ft passing to a new rent based on a highly optimistic £60.00 per sq ft.
McCalmont-Woods was referred by its existing client JP Morgan Cazenove and was subsequently instructed by Cazenove Capital Management to negotiate the upward only rent review with a view to mitigating any uplift in rent payable as at the 24th June 2008 review date.
Services Provided
- Consideration of existing lease contract and provisions for rent review
- Market research (analysis of City offices market and comparable market evidence at valuation date)
- Preparation of initial client report outlining McCalmont-Woods’ strategy for handling the review
- Property inspections (subject premises and market evidence);
- Negotiations and settlement of rent review
Outcome
McCalmont-Woods negotiated a minimal uplift of 1.5% on the rent passing. The settlement reached by negotiation between the parties (without the need for recourse to independent arbitration) represented a 83% saving for Cazenove on the uplift in rent proposed by its landlord.
Stewart Norwood, Director, Head of IT
“Nick McCalmont-Woods carried out a rent review on our behalf. Throughout, his advice was clear and valuable, resulting in a very positive outcome for the firm. He combines an expert view with a commercial approach, thus making sure all options are understood, strategy agreed, then effectively implemented.”
