SBM

Client Project: Lease Surrender

SBM was pleased to negotiate a successful lease surrender for a leading blind manufacturer.

The deal took place during the early days of the COVID-19 pandemic and SBM was able to negotiate a full, stand-alone lease surrender.

The 34,000 sqft warehouse based in the UK had been used to produce more than 170,000 blinds per year.

SBM was able to act on a break clause in the lease and undertook a comprehensive evaluation of both the local market and the repair obligations to the landlord.

A financial model was built to demonstrate the costs options and it became apparent that the dilapidations claim by the landlord was likely to be high.

A break notice was served which was followed by a challenging period of negotiation with the landlord. A full and final agreement was agreed in May 2020, bringing to an end the client’s ongoing occupational costs and removing all outstanding lease liabilities.

SBM Managing Director, Stephen Bleakley commented on the transaction: “We’re pleased to have secured a lease surrender in what was a complex and tricky case.

“By doing our research and thoroughly understanding the local market conditions we were able to negotiate from a position of strength and release our client from an unwanted lease.”

Read more about lease management.

Published: 7th August 2020

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