Fleet, Sentinel House

Income Enhancement

The Challenge

ING Real Estate's client own Sentinel House in Fleet. The property was let to a 5 A1 covenant for a further six years; the tenant was not in occupation and the property was surplus to requirements. The tenant applied to the Landlord to sublet the property, however the lease prevented them from entering into the management contract that was proposed.

The Solution

Campbell Gordon worked closely with ING Real Estate to negotiate a solution which worked for all parties. During this process Campbell Gordon identified an opportunity to agree a rental uplift at a forthcoming rent review, 12 months early. The reviewed rent was agreed at a 12.5% increase and in return ING Real Estate were able to provide consent for the tenant to enter into a management contract with a serviced office supplier.

The Result

An increase in the passing rent was achieved on a building that was heavily overrented, improving the income profile for ING Real Estate's client. The property was occupied by a serviced office provider, providing income to the tenant and the future opportunity of retaining the subtenant.

'Campbell Gordon assisted us in achieving a 12.5% rental increase on this already over-rented property, with no downside risk to the Fund. This was a good result for all parties'

Jay Cable, Senior Associate - ING Real Estate Investment Managers

 

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