BTG secures £1.7 million annual rent through arbitration victory and strategic re-letting

The Challenge

Our landlord client required professional representation for a rent review of a substantial mixed-use property comprising a ground floor and basement restaurant with four floors of office accommodation above, situated in central London. The existing rental amount significantly undervalued the property given its prime location.

Our Approach

We conducted extensive negotiations with the tenant's advisor, providing numerous comparable transactions around the area as evidence of the appropriate rental levels for both the restaurant and office components. When negotiations reached impasse with positions remaining irreconcilable, we advised referral to arbitration as the most effective route to secure fair market rent determination. Our team prepared comprehensive reports and replies presenting a robust defence of our rental assessment.

The Outcome

We secured a successful arbitration award increasing rent from £750,000 to £1,097,000 per annum, with all costs awarded in our client's favour. This 46% rent increase vindicated our valuation position and delivered substantial additional income. We subsequently negotiated surrender of the entire lease and successfully re-let the restaurant space, achieving rent exceeding £1.7 million per annum - more than double the original passing rent.