FHP Agree To King Street Regear - 14 March 2014

FHP Agree To King Street Regear

King Street Business Centres (Part of The Foxhall Business Centres Group), which provides modern and flexible serviced office space in Nottingham City Centre has agreed to regear its lease at its King Street premises in Nottingham Market Square.  The serviced office provider first opened on King Street in 2008 and have now agreed an extension of their lease which will secure their future of the property for a further 15 years until 2028.

Tom Wilton of King Street Business Centre commented: -

"When we acquired this property in 2008 we spent a considerable of money refurbishing the property to ensure that we were able to meet the needs of the market.  Since the refurbishment was completed we have seen a high occupancy in rates which has encouraged us to continue to invest in the building and maintain the high specification of the offices.

Now we have secured our future at the property we now plan to make further significant investment to the property to ensure that we can continue to provide high quality serviced work spaces for between 1 and 20 people."

The regear was agreed by Alastair Fearn, an Associate Director of Nottingham based FHP Property Consultants who act on behalf of F&C Reit Asset Management.

Alastair Fearn commented: -

"It is a regear that is of benefit to both parties.  From King Street's perspective they have been able to secure their future at the property, and our client, the Landlord will benefit from the security of a longer lease and fixed rental increases.

The original lease still has 5 years left to run, however the proactive approach adopted has meant that both the Landlord and tenant benefit from the regear."

The property itself is a Grade II listed building set over four floors and provides serviced work spaces for between 1 and 20 people as well as meeting and conference rooms.  The ground floor of the property is occupied by Clarks Shoes, Nottingham Express Transit and there remains one vacant retail unit on the ground floor, which FHP currently has under offer.

Victoria Shiells of F & C Reit Asset Management added: -

"We are always looking for ways in which we can work with our tenants and in this instance we are happy to have been able to reach an agreement which benefits both King Street Business Centre and us as a Landlord."

King Street Business Centres were represented by Wendy Shaw of Ashton Bond Gigg who incidentally are located close to the Market Square almost diagonally opposite 2 King Street. Wendy Shaw, who is experienced in acting for regional businesses in property transactions, commented:-

"Renegotiating terms of a lease prior to its natural end provides advantages for both Landlord and Tenant and can help foster the Landlord/Tenant relationship. I was pleased to assist King Street Business Centres as I was able to use the regear as an opportunity to renegotiate important clauses for my client"

Alastair Fearn concluded: -

"This regear illustrates that through our discussions between the Landlord and the tenant, both parties can benefit.  Having dealt with the initial letting to King Street Business Centre in 2008, I am pleased that they are not only making success of their business but have brought the upper floors of a landmark building in Nottingham City Centre, into a condition where others can also benefit."

<< Back