LEASE RE-STRUCTURE / LEASE RENEWAL / PART LEASE SURRENDER
Metropolitan had a Lease of the whole building, which included 14,000 sq ft of offices on Down Street. These offices had been their UK Headquarters, but they had relocated due to surplus space, and sublet them as a self-contained office building.
With lease expiry looming, we were instructed to try and negotiate an early renewal of the leisure part of the building in isolation, subject to a simultaneous surrender of the office part.
After very complex negotiations, we eventually agreed terms to surrender the office part and take a new lease on the leisure premises separately, at a rent substantially below the previous passing rent, as well as a substantial rent free period. Furthermore, we virtually simultaneously agreed terms to sublet the entire ground floor leisure space to a restaurant operator which further significantly reduced Metropolitans overall property outgoings.