04
October
2007
|
00:00
Europe/London

Kirkpatrick & Lockhart Nicholson Graham LLP

Advised by Mark McAlister, with assistance from Alex Millward, both in the CBRE City Agency team, K & L Gates have signed on 120,000 sq ft (plus a 16,000 sq ft option and further space in the basement and mezzanine) at Land Securities’ One New Change development beside St Paul’s in the City of London.

Advised by Mark McAlister, with assistance from Alex Millward, both in the CBRE City Agency team, K & L Gates have signed on 120,000 sq ft (plus a 16,000 sq ft option and further space in the basement and mezzanine) at Land Securities’ One New Change development beside St Paul’s in the City of London.

The appointment was introduced by the CBRE Boston office in March 2006 and over the following year and a half a thorough search was completed, including various locations in the City and Canary Wharf. Due to obligations in the existing premises at 110 Cannon St, the decision was made to negotiate with Land Securities (the existing landlords) to take space in one of their new developments, with Land Securities’ agreeing to release them from their existing obligations as part of the deal. Agreeing terms now enables K & L Gates to lock into a Jean Nouvel high profile building now and to avoid the impact of any build cost in inflation.

The lease term at One New Change is is 20 years from Practical Completion in Q4 2010, including absorption of 110 Cannon Street rent review (value circa £1,318,368) and with extensive signage rights negotiated.

K & L Gates are very pleased with the outcome, including gaining high profile space in Statement City Development, with no risk of double overheads, eradication of 2008 rent review saving £1.3 million, significant bespoke tenant variations to base building and a dealing rent lower than 2007 market rent and not applicable until 2012.

Mark McAlister said: “It was a hard deal to negotiate but particularly rewarding to conclude it after the Credit Squeeze and it proves that the City occupational market remains vibrant”.