"Successful settlement tough arbitration on the basis of very limited rental evidence"
Woolworths Plc attempted to
secure a negotiated settlement that ultimately proceeded to
Arbitration. Hammond Phillips was asked to represent Woolworths
at Arbitration in respect of premises sited in a secondary
position in a local convenience centre.
- Provided confirmatory
evidence to support discounts for quantum, length of lease
term, pillars, restricted ceiling height and "winning"
on all these issues.
- Researched the background
of the sale and leaseback disposal and showed that the
historic use was no longer relevant in the context of
the prevailing market.
- Protected the client on the issue of costs by making a timely and appropriate Calderbank proposal.
- Obtained a discount to reflect the assumed lease term of 15 years on rent review.
- Obtained a discount for quantum and physical disabilities.
- Provided extensive detail on the comparable transactions/properties to
enable the Arbitrator to differentiate them from the issues affecting the subject property.
Obtained an Award showing a marginal
uplift above the passing rent (1%) and 17.5% less than landlord's
Calderbank offer. As this was the first "negotiated/analysed"
settlement on the property, the Arbitration Award has set
a clear benchmark as to the future valuation approach to be
adopted. The landlord has subsequently sold the investment.
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