Interdean House, 15 Central Way, Park Royal, NW10
The Dulwich Estate owned the long leasehold interest in this circa 63,000 sq ft distribution warehouse located in the heart of Park Royal, one of the largest industrial estates in Europe. The property is occupied by an international removal firm under a lease that provided for an upwards only rent review.
Daniel Watney were instructed by The Dulwich Estate to negotiate the rent review on their behalf with a view to maximising the uplift in the passing rent of £710,000 pax.
Our Role
We carried out a detailed inspection & measurement of the premises and considered all aspects of the premises that may impact on rental value such as office content and site coverage;
Provided a detailed report to the client summarising the lease terms, rent review provisions, the hypothetical scenario that is to be valued, a detailed market analysis including comparable transactions, advice on negotiating tactics and an estimated rental value and budget rent;
Having received instructions to commence negotiations we quoted a rent of £977,250 pax. We subsequently held detailed discussions with the tenant’s agent resulting in a negotiated settlement.
Result
The majority of the evidence demonstrated that the increase in rent should be in the order of 10%. Despite this, Daniel Watney were successful in negotiating an increase of £190,000 pax over the passing rent to a revised rent of £900,000 pax, an increase of 27%. This resulted in an increase in rental income over the remaining 5 years of the lease of £950,000.
This favourable result was secured as a result of Daniel Watney’s extensive knowledge of the local industrial market combined with our technical expertise gained through a combined 35 years’ experience dealing with lease advisory matters.
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