Manchester - advising on break negotiations on behalf of Kuoni Travel.
blackstanniland received an instruction to advise Kuoni Travel in relation to a potential relocation and subsequent exercise of their tenant break option effective 21st July 2013 at their retail store in King Street, Manchester.
- Our landlord and tenant specialist, Martin Black, investigated the wording of the break clause to ensure it was capable of being operated without the need to comply with any onerous conditions
- Our retail agent, Jamie Stirling-Aird, researched the market in the vicinity and advised Kuoni in terms of which alternative units were available, and the likely terms, rental and incentive packages which would be available in the event of relocation.
- We advised our client that the subject property was significantly over-rented at the level of £155,000 pa and of our Estimated Rental Value (ERV) in the order of £122,000 pa. It became apparent that, if the landlord was unable to offer a reduced rental for the subject property, then a relocation would be worthwhile pursuing.
- Negotiations were subsequently opened up with the landlord of the subject property, with a view to adjusting the rent to market levels, in return for not exercising the tenant break.
The parties reached Heads of Terms on the basis that the tenant break option effective 21st July 2013 would be removed from the lease. This is on the basis that the rent will reduce to the level of £115,000 pa from the above date, until the end of the lease term. There was an upward only rent review simultaneous to the tenant break clause, and this was removed from the lease. These terms were documented by way of a Deed of Variation.