Blackstanniland advise on Nottingham break negotiations
We received an instruction to advise Kuoni Travel in relation to a potential exercise of their tenant break option effective 1st June 2015 at their retail store in Bridlesmith Gate, Nottingham.
- Our landlord and tenant partner, Austin Stanniland, 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 over-rented at the level of £100,000 pa. If the landlord was unable to offer an incentive for our client to stay, then operation of the tenant break would be worth considering.
- Negotiations were subsequently opened up with the landlord of the subject property, with a view to securing an incentive or adjusted rental, in return for not exercising the tenant break.
The parties reached Heads of Terms on the basis that the tenant break option effective 1st June 2015 would be removed from the lease. This is on the basis that the tenant will receive a rent free period of 6 months. 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.