Harbottle & Lewis


Harbottle & Lewis, the media and entertainment solicitors, occupy 23,000 sq ft at 14 Hanover Square, London W1 and an adjoining building.

All their leases expired between 25 March 2003 and 25 March 2004, the most important being 20,000 sq ft in 14 Hanover Square on a lease which expired in March 2004.

Following a review of opportunities in the market by Edward Charles & Partners they decided to remain in their existing offices and instructed David Fryman to open negotiations with their landlord, Great Portland Estates Plc. It was decided to try and bring forward the renewal date to take advantage of market conditions. When a lease expires every aspect of a lease is ‘up for grabs’ and the following transaction on 14 Hanover Square was negotiated:-

•   A surrender of the principal lease one year early (producing a rent saving of £200,000) and the grant of a new 15 year lease from March 2003, subject to a tenant’s option to determine in March 2013.
•   10 months rent free period
•   Capital contribution equivalent to about 1.25 years rent
•   No rent review for 10 years
•   Landlord to refurbish exterior, including roof, at its own expense
•   Right to assign lease to Harbottle & Lewis LLP, without privity of contract
•   Right to assign whole, underlet whole or part, or run building as serviced offices.
•   No terminal dilapidations

Landlords are normally keen not to lose their tenants when leases expire, but tenants often do not want to incur the costs of relocation and dilapidations. This transaction represented a sensible commercial compromise that suited both parties.

Harbottle & Lewis partner, and Partnership Premises Committee Chairman, Alan Patten said:
“David Fryman was an excellent guide to us through a complicated series of negotiations. David was commercial, accessible and realistic. He was very professional in his presentation of the proposed deal and the alternatives to the whole partnership, and patient with the concerns of the partners who were not familiar with the commercial property world. We were delighted with the outcome and enjoyed dealing with David."

Robert Noel, Property Director, Great Portland Estates said of the transaction:
“David was very tenacious throughout our negotiations and carefully considered the wider implications of each part of the transaction for his client. As a result we have since asked him to do the same for us on other deals.”

Following this transaction David Fryman is acting, upon recommendation, for two clients of Harbottle & Lewis, one of which is Comic Relief, and recently concluded the firm’s first two rent reviews for Great Portland Estates.