Challenge

Royal Mail occupied a warehouse and yard under separate leases in Southampton. The landlord proposed significant rental increases at review and Altus Group was instructed to act for Royal Mail.  Both leases had only 5 years left until expiry and the tenant did not benefit from security of tenure.  Royal Mail required the rental increases to be mitigated at review and for their ongoing occupation of the site to be secured.

Solution

We engaged with the landlord’s advisor providing supporting rental evidence for both the yard and warehouse, highlighting the intricacies of the lease provisions to support a limited rental increase in both cases at review.  Furthermore, we negotiated new reversionary leases for the two demises for a further term of 10 years both with rent reviews at lease commencement. We negotiated rental savings of £300,000 from the landlord’s rental proposals over the 5 year review period and secured the continued occupation for Royal Mail for this important site.

Results

£300,000 Savings

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