Porta Wealth Management LLP, a new company established in early 2014, wished to open an office in the City of London and after due consideration as to the merits of entering into a licence agreement on serviced offices, elected instead to acquire a new 5-year lease on premises.
Being a new start-up it was important to project the right image to clients and staff while at the same time exercising control on operating and capex costs. Equally important was the need to retain lease flexibility to reflect the businesses’ future growth pattern and hence it was decided that the new lease should incorporate an option to determine in the third year of the term.
McCalmont-Woods sourced and supplied details of a longlist of property options within a 800-1,200 sq ft size range for Porta to consider and then organised for the LLP members to inspect the options shortlisted after which detailed cash-flows were prepared to highlight the cost profile of each selected property under consideration.
Once a preferred building had been identified, heads of terms were quickly prepared and agreed. Reflecting the scarcity in availability of good quality small suites in the City, the parties entered into a four week exclusivity period in which to negotiate and conclude the lease contract. The whole process from initial to contact to agreement of HoTs took four weeks.
On Porta’s behalf, McCalmont-Woods acquired approximately 900 sq ft Grade A offices in a newly refurbished mutli-let building located in the heart of the City on a new 5-year lease direct from the building owner and incorporating a 3rd year tenant break option. A competitive rent and tenant incentive package was agreed enabling Porta to manage its cost base over the lease term in accordance with its business plan.
IBTimes had outgrown its existing 2,200 sq ft offices in Canary Wharf and needed to move to larger premises. Having originally let IBTimes its existing offices, McCalmont-Woods was tasked with the job of identifying new offices on the Canary Wharf estate for IBTimes to move into.
A comprehensive market research exercise was undertaken leading to McCalmont-Woods inviting landlords on a select number of buildings to submit RFPs for consideration. The initial long-list of building options was then reviewed against a set of key criteria agreed with IBTimes and subsequently reduced to a shortlist of preferred options. Detailed cash-flows were produced on each option to assist with overall cash-flow management including fitting-out; timetable for relocations and last but not least, the rent and tenant incentive package to be agreed.
McCalmont-Woods successfully negotiated the acquisition of 6,280 sq ft on a new 5 year lease for IBTimes UK on the part 34 floor at Citi’s 25 Canada Square.
The premises acquired provided fully-fitted accommodation for over 80 staff which IBTimes to keep its capex costs to a minimum at the same time as providing room for future business growth.
TATA Communications wished to relocate its London operations into 15-20,000 sq ft office premises situated in a more central location (than their existing Docklands offices) for the least cost possible (in terms of operational and capex costs).
A comprehensive market research exercise was undertaken by McCalmont-Woods leading to a shortlist of potential options being drawn up. Detailed cash-flows were then prepared on each building, leading to a preferred relocation option being selected with heads of terms agreed and Board approval obtained, all within four months from the date of appointment.
McCalmont-Woods successfully negotiated the acquisition of 18,685 sq ft offices for TATA Communications on a new sub-lease from Accenture at 20 Old Bailey, EC4 on extremely competitive terms. The premises identified benefited from a full office fit-out that included meeting rooms, comms room and kitchen facilities providing effective ‘plug & play’ offices with circa 160 desks and associated office furniture already in-situ and ready for immediate use.
TATA Communication’s HR Director, Fionnula Bentley said ‘The offices we finally settled on are fantastic value for money and provide an ideal environment for our employees.”