Disposal of 56,000 sq ft in One Canada Square, Canary Wharf, E14 for Trinity Mirror plc.
McCalmont-Woods negotiated an 83% saving for Cazenove Capital Management on the proposed increase on its 34,000 sq ft offices at 12 Moorgate, EC2 in June 2008.
Commenting on the minimal 1.5% uplift on the rent passing, Cazenove’s IT Director, Stewart Norwood said of founding director Nick McCalmont-Woods: “Throughout, his advice was clear and valuable, resulting in a very positive outcome for the firm. He combines an expert view with a commercial approach, thus making sure all options are understood, strategy agreed, then effectively implemented. He’s also extremely personable. I’d happily recommend Nick’s work to anyone.”
The renewal of international information organisation Newsquest Specialist Media’s lease at its City headquarters 30 Cannon Street, EC4 represented a challenge of a different kind to its adviser McCalmont-Woods. This was because the existing landlord, international investment manager RREEF, was at the same time negotiating to sell its freehold interest in the building.
An extensive review of the City office market suggested one option was to relocate to an alternative property. But McCalmont-Woods was able to persuade Newsquest’s landlord of the merits of concluding a reversionary lease on its 12,000 sq ft offices. This solution provided RREEF with an income stream through the recession and enabled Newsquest to benefit from a low rent, together with additional lease flexibility and a service charge cap.
One of the UK’s largest newspaper publishers, Trinity Mirror plc, instructed McCalmont-Woods to arrange the surrender of its two leases comprising close to 56,000 sq ft on the 17th and 24th floors of Canary Wharf’s One Canada Square, London E14.
Terms were duly agreed but before the surrenders could take place, Trinity Mirror further instructed McCalmont-Woods to negotiate an additional 195,000 sq ft under-lease rent review against Canary Wharf Group plc, and a 52,000 sq ft sub-underlease rent review against State Street Bank & Trust Co., both as at 20th June 2008. In total, advice was provided on approximately 300,000 sq ft of prime office space.
Mike Shaw, Trinity Mirror’s Group Services Director, said of founding director Nick McCalmont-Woods: “He acts in an utterly professional and conscientious way and has a unique ability to understand his clients’ requirements from day one, without being overawed by the task at hand.”
Leading UK investment bank JP Morgan Cazenove appointed McCalmont-Woods in early 2008 to undertake its outstanding 24th June 2006 rent review on its 8,500 sq ft building at 9-10 Tokenhouse Yard, EC2 in the heart of London’s prestigious City business district.
The lease under which JP Morgan Cazenove occupies the building is very rare today in the City, being held on a 100-year term from 1963, with 57 years unexpired at the review date.
An additional complication to this unusual lease was that there was no disregard for tenant improvements. Unsurprisingly, since taking occupation, the tenant had made a number of major internal improvements, including the installation of comfort cooling and a passenger lift.
The review cycle alternates every 10 and 11 years, so founding director Nick McCalmont-Woods expects to be 96 years ‘young’ when the agreed annual rent is finally reviewed in 2058!
The International Accounting Standards Committee (IASC) needed to acquire additional offices either in, or located close by, its existing London premises to accommodate expansion. The situation was complicated by the fact that the IASC’s existing leases in Cannon Street were due to expire in 12 months time and that its landlord was actively seeking to sell on the freehold interest in the building in order to capitalise on a rising investment market.
Nick negotiated the acquisition of a new and separate leasehold interest on part of the ground floor (west) in 30 Cannon Street while simultaneously restructuring and extending the IASC’s existing leases on the accommodation it occupied on the part basement, part ground floor (east) and first floors in the building.
Nick also negotiated capping the service charge on both the new and existing leases, yielding immediate cost savings.
With Nick’s assistance, the IASC was able to explore a broad range of options in a relatively complex situation, and in ensuing negotiations. The strategy of leveraging the acquisition of new premises with the grant of a reversionary lease 12 months in advance of lease expiry resulted in a very satisfactory (and financially beneficial) outcome for the IASC Foundation.