Blue Link International CZ - C&W awarded exclusive mandate for lease renegotiation/expansion (2,700 sq m.)
In April 2010 Cushman & Wakefield was selected as real estate advisors in the lease restructuring and expansion of 2,700 sq m of Blue Link International CZ’s headquarters in Prague. The brief was to expand the existing premises to double the size and have the landlord finance the expansion , significantly lower the (overpriced) rent and improve lease flexibility allowing a potential exit at the third year of the new lease term.
C&W made a detailed analysis of comparable buildings and transactions to set the market rent. We carried out technical due diligence of the fit out investment needed and the determination standard of the landlord’s investment for a second generation building. Cushman & Wakefield negotiated a detailed set of Heads of Terms to secure maximum lease flexibility. We assessed ventilation issues in the building and negotiated to provide penalized guarantees by the landlord to improve the existing situation.
We ensured continual co-operation with Blue Link International’s European RE director to deliver the best business terms and accommodate corporate standards in their local office .
At the end of July 2010 Blue Link International CZ signed a balanced lease amendment in the office building Bredovský dvůr:
- Over 25% savings on rent
- A significant investment from the landlord for remodelling and expanding the space
- A decrease in fit-out investment paid by Blue Link International CZ
- A break option at the third year while keeping low rent and high CAPEX financed by the landlord
- The landlord’s guarantees regarding improved ventilation in existing/new premises