C&W negotiates cost saving lease for Infor Global Solutions
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.
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.
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.