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Jones Lang LaSalle was proactive in identifying an opportunity to advise Morley Fund Management on the surrender of the existing tenant’s (Intercontinental Hotel Groups) lease on the entire 60,000 sq ft office building in Mayfair and the subsequent comprehensive refurbishment and marketing campaign.
The surrender of the existing tenant’s lease with a period of rent cover during the refurbishment works provided the opportunity to reposition the building and enhance the rental profile significantly. The market was rising but with it so were tenant’s expectations of quality and specification and the advice in this regard was critical. Following the surrender, a marketing campaign focusing on the growing financial sector in Mayfair and other corporates was identified as vital in repositioning the building in terms of perception.
The surrender agreed with Intercontinental Hotels gave Morley enough comfort to undertake the works, with additional rent cover to protect the income stream to a significant degree during the marketing phase, before enjoying a significant rental uplift. A comprehensive refurbishment of the building was carried out providing for the highest quality specification including full replacement of all mechanical and electrical fittings and incorporating a new high quality contemporary reception area and 2,000 sq ft roof terrace. The marketing campaign was successful in targeting high quality tenants with Mitsubishi and Schroders taking space, alongside private equity firm Alix Partners, property investment company Rock Investment Holdings and Brazil’s state oil company, Petrobras. In a number of instances achieved rents were at 20% in excess of the original quoting rent, ensuring a very successful result for our client.