Goldman Sachs’ lease was in excess of 2 years unexpired, and it was known that they would not be renewing as their new HQ was close to completion.
We were approached by the owner to provide a quote to handle the end-of-term dilapidations claim.
Accordingly, we provided a quote and advice on strategy to claim in full, however, given the occupational circumstance of the tenant, we proposed an alternative opportunity, to ascertain whether there was a mutually advantageous deal that could be struck to surrender the lease early.
The tenant had c. 2 years of full outgoings to pay on a surplus building, and the landlord by refurbishing sooner could bring forward the significant rental uplift achievable compared with the existing rent payable.
Following extensive and complex negotiations an agreement was reached with a substantial reverse premium being paid to the owners.
The building is currently undergoing a multi-million-pound refurbishment, and it is understood that 3 floors are currently under offer at rents in excess of £75.00 per sq ft.