Ask-re Makes its Marc!

CLIENT BRIEF

Our client, Marc, a well-known restaurant operator run by Marlon Abela occupies this discreet Michelin starred restaurant in Mayfair.

The restaurant is probably unique in Mayfair in being approached through a private garden. This factor alone became very contentious when our client was faced with an extremely complicated rent review involving a main lease and four supplemental leases.

The client was faced with a huge increase with the landlord proposing a revised rent equating to 160% of the passing rent.

The landlord relied on rental growth in Mayfair and it was soon apparent that only the most robust of negotiations would succeed.

The landlord was also attempting to argue that the premises are unique within Mayfair because of the garden approach which would result in a premium rental value.

It was further apparent, that by sticking to our honest opinions and doing the best for our client, there was no option but to refer the matter to an Independent Expert for determina-tion.

As part of our investigations we conducted an extensive search of restaurant evidence throughout the West End although through our ongoing activities in the sector, we were already in possession of most of it.

Extensive evidence was put before the Independent Expert with our opinions, arguments and rental valuation. In the end, all the hard work was worth it.

The result was that the Independent Expert primarily agreed with our case and determined a rent that resulted in less than a 3% increase above the passing rent. It is also almost one third below the figure that the landlord was seeking.

This review was also an important result bearing in mind the potential knock-on effect upon our client’s mode of continued operation at the site. It could also have had a knock-on effect on our client’s rating assessment.

Resulting from our efforts, we are now in discussions with the landlord to extend the lease on preferential terms bearing in mind that our client is now paying a rent which is much less than current rental levels.