Cazenove leased 100,000 sq ft close to the Bank of England in nine inter-connecting buildings that had been adapted to accommodate the ongoing needs of the business. To meet its growth expectations over the next decade, Cazenove sought to consolidate its operations into a single new building of around 155,000 sq ft, maximising the efficiency of the working environment for clients and staff.
In order to reach objective decisions to include a clear strategy for timetabling and implementation, Nick advised Cazenove’s partnership on:
- the timetable in which the Partnership needed to decide whether to ‘stay or go’
- the current and projected status of The City and Canary Wharf office markets with an assessment of how the supply and demand pipeline might affect rental value
- a cost benefit analysis of the Partnership continuing to invest in the infrastructure of its existing buildings
- the likely cost of terminal dilapidations and reinstatement to be borne by the Partnership on relocation
The decision was taken to relocate and Nick then managed:
- the formulation of a detailed occupational brief
- research into size, deliverability and timing of properties available for pre-letting
- arranging site inspections and presentations with potential landlord/developers
- generation of DCFs to illustrate total occupational costs over the projected lease term
- review of relevant investment considerations and impact on profit sharing arrangements
- the drafting and negotiation of heads of terms
By agreeing to accept a certain level of risk and cost and electing to relocate in what was then a relatively depressed City office market, Cazenove was able to acquire a new purpose-built headquarters building with a bespoke specification in a prime City location on extremely competitive rental and lease terms.