Project
Juramia Limited, a subsidiary company of a confidential Sovereign state, are property investors operating worldwide. The company appointed Eddisons in 1992 to provide asset and property management of the landmark building Lansdown House, in Berkeley Square, Mayfair.
The client wished to ready the property for complete redevelopment requiring vacant possession of the building in several years while maintaining the rental income while running the day to day service for the property.
The client needed a professional property manager and an experienced asset manager fully conversant with Landlord and Tenant legislation and able to work alongside other professionals to coordinate the strands of the project.
Approach
Initially, the property was subject of an overriding head lease that expired in 2013, albeit the property was in multiple occupations by subtenants. The landlord asked us to make the office building and the retail shops adjacent ready, so that Vacant Possession could be obtained in June 2018 while maintaining full income.
A surrender of the existing overriding lease was negotiated for a reverse premium, and new leases were negotiated with the sub-tenants of the offices outside of the Landlord and Tenant Act expiring in June 2018. Negotiations were undertaken with the retail tenants, and a variety of agreements reached that also produced VP in June 2018.
Subsequently, the Landlord decided to defer the project of redevelopment until 2021. Eddisons negotiated extensions of the leases to provide vacant possession from June 2021.
The building was built in 1986, and the primary mechanical and electrical (M & E) such as lifts, boilers and air conditioning was nearing the end of its life. We had to provide comfort to the tenants that they would not suffer disruption to their occupation and works were undertaken to ensure continuance continuity of service.
Results
- The building was 100% occupied at full rents until 2018.
- The building is currently 98% let to June 2021.
- The client maintained a full rental income of 8 figures and limited void costs.
- They were able to defer the redevelopment to suit their purposes in the security of a full income stream in the interim and take their time to plan this major redevelopment.
- Vacant Possession is assured in June 2021 at minimal cost of compensation to any tenants.
