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Mothercare UK Ltd had occupied this 30,000 ft² retail warehouse at Trafalgar Way, Croydon’s main retail warehouse location, since 1999. In 2009, Jones Lang LaSalle was instructed to act on behalf of the Landlord of the unit for a rent review. At the same time as our instruction, negotiations for an assignment of the lease to Best Buy were on going and our instruction subsequently expanded to include a potential lease regear.
We recommended that the best strategy to achieve an uplift would depend upon the application to assign to Best Buy. Once the application to assign was made we instigated the rent review. The review was based upon a 15 year assumed term with an element of gearing to reflect the presence of a mezzanine installed by the Landlord. These assumed terms differed significantly from those considered upon assignment by Best Buy.
Instructed by our client to obtain a fixed rent increase we used our extensive knowledge of relevant retail warehouse market evidence in the South East area, and were able to hold a strong negotiating position on behalf of the Landlord. We monitored the assignment to Best Buy closely, liaising with their Agents, and achieved a significant uplift over the clients estimated rental value, which will maintain a positive future income stream.
Contact John Hulme for further information.