SCP (UK) Limited - Rent Review

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.

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.