GCW was instructed to carry out a rent review on the property on a prominent corner parade in the town. The 3,200 sq ft restaurant over two levels is occupied by Ask Pizza.
The lease had only five years remaining and it was debatable whether any uplift would be justifiable at the forthcoming review. Following discussions with the tenant, GCW established that it wanted to invest in refitting the restaurant and saw that this offered opportunities for the landlord. GCW anticipated that the tenant may be willing to extend its lease guaranteeing its future in the property in order to write off these costs.
Based on this knowledge, GCW triggered the rent review and widened the negotiations to include discussions about a restructure of the tenant’s interest in the property. As a result it considerably added to the value of the investment.
GCW subsequently negotiated a new 20 year lease with effect from 24th June 2018 subject to a day one rent review in return for a rent free period. The restructuring of the lease secured the clients income from the property at the existing level of £94,000 pa."