JP Morgan Cazenove occupies c. 16,000 sq ft on the 3rd floor of 1 Exchange Tower, E14 under two separate leases expiring in March 2015.
The 16 storey office tower at 1&2 Harbour Exchange was originally acquired by Hammerson in 1999 for £77m but was then sold in September 2010 to MGPA Europe Fund III for c. £134.6m – an 8.1% yield. The building comprises 485,000 sq ft of office space let to a range of tenants.
The new landlord, MGP Harbour Exchange II S.a.r.l. sought an increase in the annual rent passing at review from the existing £21.00 per sq ft office rent to a new rent based on a highly optimistic £32.50 per sq ft headline rent.



McCalmont-Woods was instructed by JP Morgan Cazenove to negotiate the upward only rent review and mitigate any increase in rent payable as at the 29th September 2009 review date.


Services provided

  • 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 negotiated a saving for JP Morgan Cazenove on the increase proposed by the landlord, equivalent to almost £1m in rent over the 5 year lease term remaining.