Negotiated significant capital contribution from landlord
Enabled refurbishment works
Created high-quality, future-proofed workplace
Grade A Office Space Case Study - Quilter Plc
108,856
sq ft
grade A office space, Southampton
9
years
Lease restructure, extending lease to 2036
Challenge
We were appointed by FTSE-250 listed Quilter Plc to support the business with expert lease advice to inform the firm’s property strategy.
Occupying over 100,000 sq ft of office space at Southampton’s second largest office building, Quilter House, the wealth management firm is one of the city’s largest employers and had been located in the city centre since the 1970s, under brands Old Mutual Wealth and Skandia
Their landmark offices provided a vital regional hub and customer service centre. However, over time, the building had aged, with building services nearing obsolescence.
The building required significant refurbishment to create a modern workplace befitting of the firm’s corporate brand and client base.
How we helped
- Initially appointed to remove a break option within the existing lease, we worked with Quilter to develop a new strategy to release capital for refurbishment works.
- Having assessed the client’s business requirements, and in the context of the existing lease and the utility of the building, we recommended a more comprehensive lease restructure.
- We were instructed to implement our recommendations, restructuring their existing lease, to maximise the capital contribution from the landlord.
We are grateful to Vail Williams for their assistance in this transaction – extending our lease at Quilter House is reflective of our commitment to providing a fit for purpose, high quality working environment in Southampton and indeed the wider portfolio.
Will Sharp, Head of Estates at Quilter plc.
Results
- The comprehensive strategy we put forward, met our client’s business requirements and resulted in a substantial increase in capital which had a positive impact on cashflow.
- The capital was received ‘up front’, without obligation to the landlord, giving our client full control over how to deploy it.
- Quilter invested the money in refurbishing the building to create a modern working environment, all the while maintaining a strong working relationship with the landlord.
- A new lease was agreed for a term of fifteen years, extending from September 2032 to May 2036, removing break option in 2027.
Get in touch
If you think you may need similar support to that described here, or you would simply want to have an informal chat with a member of our team to discuss your property needs, get in touch.
Southampton
