GCW had advised Morgan Management on these two multi-let blocks with residential mansions above on Old Brompton Road for over 10 years. In this instance it was instructed to investigate the possibility of increasing the rent receivable from both effective from £672,761 pa (after 56.8% gearing). Christies Auction House was the head tenant and part-occupier and it sub-let units to a variety of tenants including Lloyds Bank, bookmakers, Coral and some restaurants.
Advice from GCW included a full report to the client on the possibilities of rental uplift and an outline of the tactics required to achieve the best results at review. GCW used its knowledge of rental values in the area to help its client achieve a very good increase in rent, dealing with the review negotiations and agreeing a rental uplift to £695,000 pa from £602,721 pa on the main block.
Subsequent negotiations enabled GCW to create the opportunity for Morgan Management to purchase the head leasehold interest in one of the blocks at a favourable price and hence facilitate lease restructuring with that individual occupiers in the block. GCW facilitated the client’s purchase of the headlease of 51/61 Old Brompton Road where the rent passing was £70,040 pa after gearing.