We were appointed by the freeholder of this office to inspect this large office towards the end of the tenant’s 15 year FRI lease. The headquarter office building was constructed in circa 2002 and provides approximately 23,000 square feet over ground and first floor levels.
We carried out a detailed review of the lease documents, appointed specialist Mechanical, Electrical and Lift Consultants and prepared a comprehensive, costed Terminal Schedules of Dilapidations for formal service on the tenant.
Following service of the schedule and expiry of the lease, the property was sold by our client to another mid-sized Property Company. We met with the new freeholder, who was happy to continue with our appointment in the negotiation of the dilapidations claim against the former tenant, an international Bank.
The new freeholder proposed an extensive refurbishment of the premises including a rear extension and internal reconfiguration. Whilst there was a supercessionary effect on some aspects of the original claim, a significant claim existed and we therefore prepared a Final Schdedule of Dilapidations and Quantiifed Demand for service on the former tenant.
HOW PROPITAS ADDED VALUE
We liaised closely with the new freeholder immediately following their acquisition of the site, in order to understand what their key objectives for the property were, post lease expiry. Using our expertise in building construction and refurbishment, we were able to assess the refurbishment designs prepared by the freeholder’s design team and prepare a detailed and justifiable Quantified Demand.
Our reasoned assessment and open approach to negotiations with the former head tenant meant that a commercially focused financial settlement could be agreed. This allowed the freeholder to progress his refurbishment proposals with the benefit of a significant cash injection (settlement of £340k) and provided the tenant with a potentially advantageous settlement as well as cost certainty.
• Preparation of a Terminal/Final Schedule of Dilapidations
• Careful review of various leases and landlord’s proposals to prepare detailed cost estimates
• Commercially focused negotiation to achieve the most cost effective dilapidations settlement for our client