We were instructed by an old client, Serica Energy PLC, as they had outgrown their existing premises and their lease was coming to an end. Quoting rents at the time were £42.50 psf and we identified 52 George Street, London W1, where Orange Telecom had vacated a building on which 3 years remained of a lease on 6,400 sq ft.
We agreed terms based on a rent of £30 psf plus a subtantial rent free period and all dilapidations, which meant that our client received the sum of £925,000 + VAT.
What really attracted us to this property, apart from under-cutting the market rent by 25%, was the fact that the lease had a right of renewal so our client could, if they wished, benefit from 8 years of very low rent.
We received a monthly retainer and a performance related fee of £30,000 + VAT.