C&W negotiates cost saving lease for Infor Global Solutions

The Challenge

The 77,000 sq ft building was too large for their needs and improvements to the M&E services were required if Infor were to remain in occupation beyond lease expiry. The passing rent was above the market level and Infor had an uncapped dilapidations liability.

The Solution

Cushman & Wakefield were instructed to review all potential options for Infor’s longer term occupational requirements. Cushman & Wakefield’s Project Management team undertook a space planning exercise which concluded that c 55,000 sq ft was required. Following an extensive search for suitable alternative premises within an acceptable drive time, a final shortlist was agreed. At the same time, negotiations were held with Infor’s existing landlord for a regear on part of the building.

The Results

Detailed cash flow modelling was undertaken for a number of options on various bases. This analysis showed that a lease regear on c 55,000 sq ft within their existing building was the optimum solution. Cushman & Wakefield negotiated terms for a reversionary lease of 6 years with a 47% rent reduction and a waiver of all future dilapidations costs. The transaction delivered a Net Present Cost saving to Infor in excess of £8m over the term of the new lease, compared to the terms of the previous lease.