12 Arthur Street, London EC2
UPP Group Ltd, the UK's leading provider of on-campus residential and academic accommodation infrastructure, had a looming break in their lease for their existing premises at 40 Gracechurch Street, EC2.
UPP were considering their options whether to move to new premises that better suits their needs or re-negotiate terms with their existing landlord.
Our Role
Daniel Watney was appointed to assist with UPP’s Stay vs Go decision making. For the search our role included.
Alongside the search, we also entered into negotiations with the landlord at their existing premises seeking to improve the terms of their lease using the prospect of exercising the break as leverage. The cash flow for the ‘stay’ option was run alongside the relocation to help inform decision-making.
A thorough search of the market to identify suitable opportunities.
We carried out a number of viewing tours and considered the merits of each opportunity.
Daniel Watney were appointed to assist with UPP’s Stay vs Go decision making. For the search, our role included
Detailed cash-flow analysis of the preferred opportunities to help inform decision making.
Alongside the search, we also entered into negotiations with the landlord at their existing premises seeking to improve the terms of their lease using the prospect of exercising the break as leverage. The cash flow for the ‘stay’ option was run alongside the relocation to help inform decision-making.
Negotiate detailed Heads of Terms to secure the best financial deal and protect UPP’s interests in terms of other liabilities, for example – repairing obligations, service charge, break options, alienation rights, and rent review provisions.
Liaising with UPP’s other consultants (solicitors, fit-out, and IT) to ensure the matter was seen through to successful completion.
Result
Ultimately Daniel Watney acquired a new 8,759 sq ft office on the 1st floor at 12 Arthur Street, London EC2. 12 Arthur Street had been comprehensively refurbished by landlord CIT to deliver Grade A office accommodation.
Daniel Watney was able to negotiate a total of 26 months rent-free over the 10 years of their lease together with £1.50 per sq ft saving in rent. This resulted in a total saving of £1.3m in rent across the term.
This acquisition was set in a particularly challenging time as the UK entered into lockdown as a result of Covid-19. Through speedy adaption and regular communication with the client, we were able to keep to the timetable in place. In addition, we negotiated additional rent-free in light of lockdown and added protection within the lease should the UK enter into additional lockdowns.
Client Testimonial
"A quick note to thank you for the exceptional effort in delivering Arthur Street. There were twists and turns a plenty and I’m grateful for your hard work and patience throughout.
Henry G-J, Chief Financial Officer"
