Cwmbran Town Centre
The Early Learning Centre requested a significant reduction at their lease renewal and a 5 year term having preserved their position under the Landlord and Tenant Act 1954, albeit they contributed little to the centre and occupied a highly prominent location.
The Challenges were:
Maintain full rental income for our client.
Secure a tenant which would add vibrancy to this important corner location.
Negotiate the surrender of the Early Learning Centre’s lease at the lease renewal, whilst preserving our clients claim for dilapidations.
Took a firm approach on renewal with the Early Learning Centre who had protected their position and were adverse to the principle of vacating the premises.
Agreed terms with Costa Coffee on a Base and Turnover Lease to include a section of outside seating, which would generate income for the Landlord. Costa Coffee’s policy is to break after 6 years but in view of the fact we were taking on a tenant who was reluctant to vacate the premises, we were able to negotiate a 10 year lease with no break, improving the investment value of the premises.
Contracts were exchanged with Costa Coffee subject to Vacant Possession to give our clients full confidence to pursue an aggressive stance with the incumbent tenant who maintained they required a significant rent reduction.
Our strategy prevailed and the Early Learning Centre served a notice to discontinue their lease on the assumption we were bluffing.
Subsequently the lease completed with Costa Coffee, securing a strong performing tenant, maintaining full rental income and a longer lease. Full dilapidations were obtained from the Early Learning Centre. The addition of Costa Coffee has significantly improved the visual impression of this important corner within the centre and proved highly popular with shoppers, increasing dwell time within this part of the centre.