Acting for a family property company, GCW agreed terms for TK Maxx to open in the store on High Street, Eltham on a 15 year lease with a break at 10 years at £240,000 pa. The property is an attractive, 17,700 sq ft store in a prime high street location and was let to Debenhams at £130,000 pa on a lease held until the end of 2016.
During 2016, GCW generated competitive bids from TK Maxx and several other large store operators and secured an agreement for lease from TK Maxx. As Debenhams had the right to a new lease, GCW was then able to use the new terms agreed as a comparable. The lease went to arbitration with an award of £190,000 pa for Debenhams. Ultimately Debenhams decided to close its store allowing TK Maxx to take a new lease on the terms previously agreed.
“We knew that the landlord should be proactive and not wait for Debenhams. We helped to look for alternative tenants and the deal with TK Maxx had a double positive - an increased market-value rent from Debenhams if it elected to stay or a new tenant ready to move in if it decided to leave,” says GCW director Clive Gillingwater.
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