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:-
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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. |
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10 months rent free period |
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Capital contribution equivalent
to about 1.25 years rent |
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No rent review for 10 years |
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Landlord to refurbish exterior,
including roof, at its own expense |
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Right to assign lease to
Harbottle & Lewis LLP, without privity of contract |
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Right to assign whole,
underlet whole or part, or run building as serviced
offices. |
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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. |
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