JP Morgan Cazenove occupied 16,000 sq ft on the 3rd floor at 1 Exchange Tower, E14 under two separate leases expiring in March 2015.
The 16 storey office tower at 1 & 2 Harbour Exchange was acquired by Hammerson in 1999 for £77m but then sold in September 2010 to MGPA Europe Fund III for £134.6m – an 8.1% yield. The building comprised 485,000 sq ft office space let to a range of tenants.
The new landlord, MGP Harbour Exchange II S.a.r.l.had sought to increase the annual rent at review from £21.00 per sq ft passing to a new and highly optimistic headline rent of £32.50 per sq ft.
McCalmont-Woods was instructed by JP Morgan Cazenove to negotiate the upward only rent review on its behalf and mitigate any increase in rent payable as at the 29th September 2009 review date.
- Consideration of existing lease contract and provisions for rent review
- Comprehensive research into, and analysis of, comparable evidence in the Docklands offices sub-market as at the valuation date
- Preparation of initial report to client outlining McCalmont-Woods’ recommended strategy
- Negotiations with landlord’s agent to include submission of a ‘Calderbank’ offer
- Preparation of Statement of Agreed Facts and Statement of Agreed Evidence as a prelude to a full Arbitration
McCalmont-Woods successfully negotiated a saving of almost £1 million for JP Morgan Cazenove over the 5 year term remaining on the tenant’s lease.