Mapeley Estates manage real estate in the UK on behalf of HM Revenue & Customs (HMRC). Following a consolidation programme of regional offices into a fewer number of larger sites, Castle House in Leeds extending to 78,298 sq. ft. became surplus to requirements. With several years remaining on the lease, the challenge was to mitigate HMRC’s remaining lease liability.
We entered into negotiations with the landlord, Bridges Fund Management, with the aim of agreeing to surrender the lease. Detailed negotiations needed to account for present value of the remaining rent liability, projections on business rates liability, service charge liability, dilapidations and potential running costs.
A surrender premium was agreed in full and final settlement of all lease obligations. Simultaneously the landlord agreed an off-market sale of the building with vacant possession to Bruntwood (the adjoining building owner).
