What are some strategic goals that clients may have?
1) Achieving ESG/CSR goals - community assets/green clauses in leases
2) Tenant Mix - diversification
3) Security of Income (pension funds)
4) Income driven
What is a pre-let (mentioned in Basildon example)
When an occupier signs an agreement for lease on a unit still under construction. Completion occurs once the development has finished and/or occupation is safe.
What difficulties did you come across on your lease restructuring advice in Feltham?
1) Some tenants did not want to agree to flexible leases so either:
A) we came to an amicable solution that they would agree a low rent as compensation
B) we served S.25 when expiry came up and paid compensation on the grounds of redevelopment and re-let the units with flexibility
What rental uplift did you achieve compared to your ERV for the unit in isolation (Cheapside)?
£130k ERV in isolation
£175k from offers on splits
35% uplift
