Rent review expertise
Industrial market insight
Dilapidations Assessment
Exit strategy advice
Lease renewal negotiation
SCP (UK) Limited - Rent Review
43,216
sq ft
warehouse space
Challenge
Vail Williams was appointed by European swimming pool and spa company, SCP (UK) Limited, to provide strategic property advice ahead of a forthcoming rent review.
Our client required more space, so we provided advice on the pros and cons of staying and taking additional space, versus seeking larger premises on a longer lease. As part of this we advised on the potential to restructure the lease as well as assessing potential dilapidations liability and exit strategy.
How we helped
- Explored ways to mitigate proposed rent increase from the landlord at rent review.
- Carried out a rental assessment to allow for negotiation with landlord on potential lease extension.
- Meanwhile, undertook assessment of all options, providing a report outlining the financial implications of each
- Undertook assessment of potential dilapidations liabilities to inform decision .
- Paperwork documenting building alterations throughout the lease duration was incomplete. Therefore, three scenarios were considered to provide best to worse case scenarios and their financial impact.
We are grateful to Vail Williams for their ability to provide us with a detailed analysis of all the options available to us ahead of our rent review, informed by in depth market knowledge and technical expertise. It allowed us to make an informed decision with confidence, and their involvement at an early stage avoided many pitfalls, whilst securing a positive impact on our bottom line for the next 10 years. This was key for our business.
Dash Ganeson , Managing Director SCP (UK) Limited.
Result
- A combination of a lack of suitable warehouse space and higher market rents, made a relocation untenable.
- Thanks to early engagement and negotiation with the landlord and armed with the knowledge of their dilapidation liability, we enabled our client to stay at their existing site.
- Successfully negotiated favourable rents at rent review, securing terms for a new 10 year lease in return for an incentive.
- Secured the tenant’s future occupation at a time when industrial space was rare and at a premium.
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.
Woking
