Investor Leasing Advice
500 Cap GreenIVG UK Limited, part of one of the major listed European real estate companies, had let its entire 78,000 sq ft office building, 500 Capability Green in Luton to InBev UK, the brewer. The lease term was until March 2010, after which InBev only needed 25,000 sq ft of space.
IVG wanted to maximise its rental income from the building by retaining InBev along with two sub-tenants, Northgate Arinso and Bay Restaurants.
We regeared InBev into a new lease on the ground floor from March 2010 and also retained both sub-tenants as direct tenants at the same time. Both Northgate Arinso and Bay Restaurants took half of the second floor each.
We also recommended to the client to refurbish the first floor of the building, in order to have better chances of a re-let.
Bray Fox Smith clearly turned the situation around to ensure that the client, IVG, got the best result. The building could have been left fully vacant, but strategic planning and timely negotiations led it to having 66% occupancy, without even being advertised in the market. All three occupiers have been retained in the building, under direct leases with IVG.
We are now working on a refurbishment of the first floor offices and common areas. With the amount of interest that we have had for the remaining space, in what can only be seen as a thin market elsewhere, we are confident that the building will soon be fully let.