Track Record


 

ARKWRIGHT WAY, RUNCORN

Challenge

Electron Technical Solutions occupied the subject premises, a 38,000 sq ft manufacturing / production unit on a 5 year FRI lease, with 3 years of the term unexpired and an option to terminate in 12 months’ time. Electron were looking to secure an extended period of occupation of approximately 10 years, to assist with the planning of capital expenditure / investment in both the business and the building. Darby Keye Property were appointed to review and advise upon Electron’s property options in accordance with their corporate strategy and objectives.

Strategy

  • Review the terms and obligations of the existing lease, together with ‘security of tenure’ provisions
  • Understand contractual repairing / dilapidations liability
  • Consider options:
    • Restructure existing lease
    • Purchase the freehold
    • Vacate and secure new premises
  • Obtain proposal from the landlord to procure a longer lease or the freehold title
  • Advise on the advantages / disadvantages of each
  • Advise on the mitigation of future liabilities, particularly dilapidations
  • Negotiation of the best terms possible
  • Agree final heads of terms and instruct lawyers
  • Oversee legal process through to successful completion

Outcome

Darby Keye Property successfully acquired the freehold interest in the property at a price that exceeded the client’s expectations in accordance with their corporate strategy. In particular, the purchase significantly mitigated their dilapidations liability under the terms of their existing lease, removing it altogether upon completion of the purchase.