Our company intel highlighted that BES Ltd had several units on Junction Six Industrial Park with forthcoming lease events.
We approached BES and established that they were operating out of two facilities extending to approximately 35,000 sq ft which was not ideal for the ongoing business operation.
Providing a solution to the client
With lease expiries due on both units, we advised BES that it would be an opportune time to relocate into a larger, single facility and take advantage of attractive incentives available in the market. Unit 12 on the same estate comprising 77,317 sq ft was available and following a trawl of the market, was deemed the most appropriate solution available to the client.
Cost savings and rent incentives secured
Following negotiations with the landlord, we negotiated a surrender of Units 3 and 5 with the simultaneous granting of a new 10 year lease of Unit 12 following completion of a refurbishment programme. We were able to secure a lucrative 18 month rent free incentive for BES, enabling a smooth transition to take place into the larger premises. We also completed the transaction in August 2011 in line with their requirements.
Dilapidations and schedule of condition to protect future liability
Our Building Consultancy team’s efforts quantified the level of financial settlement that was to be paid to the landlord on the surrender of the BES’s existing premises. We also advised BES in agreeing a schedule of condition (following the refurbishment) on Unit 12 to ensure they were protected at lease expiry with regards to dilapidations.