C&W was instructed to identify options within a 15 mile radius of the Maple Cross UK HQ premises that could accommodate a consolidation of the Nissan, Renault and RCI businesses into a single location whilst also generating cost savings over their ongoing property occupancy costs. The timing of the requirement was driven by Nissan’s head lease expiry in December 2015 on the three Maple Cross Buildings.
Having undertaken a detailed review and search for both on and off market opportunities meeting the parameters of the requirement, initial short-listing and inspections of all suitable options, two relocation premises and a possible re-gear solution at Maple Cross were shortlisted for further detailed review and negotiations.
Following an extensive period of negotiations and further detailed analyses of the shortlisted options, we formally agreed terms with Henderson Global Investors for new individual leases for Nissan, Renault and RCI within Buildings 2& 3. This was agreed on the basis of the Landlord undertaking at their own cost an extensive phased refurbishment and upgrade of each building to include the replacement of all the M&E plant and machinery to provide for an occupancy ratio of 1 person per 8 sq.m. allowing for greater occupancy efficiencies and an improved working environment. The landlord was also obliged to construct a new self-contained restaurant/catering facility on the site, again at their own cost, allowing the amenity provision to be moved out of Nissan’s own office space conveying further efficiencies and cost savings.
Due to a lack of any new development in the search area over the course of the last 8-10 years, there were few options offering accommodation of the required size. As a result, there was upward pressure on rents and a corresponding reduction in the incentive packages on offer. However, having a detailed understanding of the Landlord’s position, and by leveraging the alternative options, we were able to negotiate for the Landlord’s complete refurbishment and substantial improvement of each building on the basis of each tenant company taking a new individual lease at a reduced rent, with the flexibility of tenant only options to break at both the 5th and 10th anniversaries, together with extensive incentive packages. We were therefore able to provide Nissan, Renault and RCI with a unique opportunity to take flexible leases on newly refurbished and substantially improved premises on financially favourable terms.