The Brief
Over the course of this 3 year mandate Cushman & Wakefield Building Consultancy have advised Orange Retail on exit strategy and have negotiated and settled 12 dilapidations claims, both of a terminal and break option nature. The project brief was to:
- review lease documentation;
- survey the properties prior to lease expiry;
- assess the current condition of each 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 and/or beak option conditions;
- Negotiate cash settlements with Orange’s respective Landlord’s surveyors.
Solution
- Develop bespoke reporting pro-forma.
- Use knowledge and experience to provide Orange with accurate costings for budgetary purposes.
- Employ dilapidations strategies, using experience and past precedence to reduce the level of claims.
Conclusion
Out of 15 lease expiries and break options over a 3 year period, to date 12 claims have been settled with a further 3 claims currently under negotiation, likely to be concluded in Q4 2010. Cushman & Wakefield Building Consultancy negotiated these claims resulting in a saving to Orange Retail of circa £300,000.
Keys to Success
- Co-ordinating surveys through Cushman & Wakefield LLP’s regional offices provided 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.