Over the course of this 3 year mandate Cushman & Wakefield LLP Building Consultancy have advised Orange PCS on exit strategy and have negotiated and settled 8 considerably major dilapidations claims, and are currently negotiating a further 2, both of a terminal and break option nature.
One particular case study which illustrates where the exit strategy adopted produced an excellent result was 15,000 sq ft office block in Hemel Hempstead, which Orange held on a 10 yr Full Repairing and Insuring Lease.
- review lease documentation;
- survey the property prior to lease expiry;
- assess the current condition of the property in comparison to its likely condition and layout at lease commencement, reporting to Orange their potential level of exposure;
- provide strategic advice as to terminal liabilities;
- negotiate cash settlement with Orange’s Landlord.
Using our experience and commercial awareness, adopting our well proven exit strategy and understanding the recent turbulent market, we were well positioned to negotiate a Landlord’s Terminal claim served on Orange at a level of £970,000 down to an agreed and documented cash settlement of £265,000 (all inclusive).
The total saving passed on to Orange PCS for the 8 settled claims is circa £1.4m. The remaining 2 claims are currently under negotiation and are likely to be concluded by Q2 2011.
Keys to Success
- Co-ordinating surveys through Cushman & Wakefield LLP’s regional offices provides for a quick turnaround and reduced fees.
- Process was set up and managed by an experienced RICS qualified professional who has a high level understanding of the clients business requirements, resulting in effective and concise advice.
- Having experience in acting for both Landlords and Tenants provides maximum potential for reducing dilapidations claims.