Case Study

Specialist Property Company

Client

A specialist property company.

 

Brief

Provide investment advice, strategic counsel and support to the proposed long lease acquisition of a redundant datacentre. The terms of the long lease for the datacentre, which required extensive remodelling to meet the demands of the prospective occupier, were therefore critical to the client's strategic repositioning plan and overall viability of the proposal.

Result

Following a forensic analysis of the lease, our Investment team identified the need for substantial renegotiation of the terms, to ensure the financial viability of the project. Working closely with our client and their legal team, we successfully advised upon and renegotiated the terms of the long lease, securing significant gains for our client including:

  • Enhanced acquisition incentives
  • A reduction in ground rent
  • Improved provisions and flexibility on future rent reviews
  • Long term redevelopment rights with ground rent rebasing provisions
  • Pre-emption rights.

As a result, the fundamental viability of the scheme was secured, resulting in an anticipated Gross Development Value (GDV) in the region of £150m.

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