Lease renegotiation for Sun

Posted On Friday, 08 February 2002 03:01 Published by eProp Commercial Property News
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Corporate Real Estate Services, a division of Old Mutual Properties, has saved Sun International R1 million through renegotiation of a lease on its Cape Town offices.

Brent Wiltshire Old Mutual Investment Group PropertyViv Delbridge, solution maker for CRES, says Sun International had been trying to sub-let space in Safmarine House in Cape Town's CBD for nearly a year before they approached CRES.

Sun International had two years of a five-year lease to run and too much space on the penthouse floor for its scaled down requirements but wanted to remain in one of the city's most sought-after A-grade buildings and avoid the upheaval of moving.

Says Delbridge: 'We looked at what they had - 1707m² over two floors - and what they needed by rationalising requirements on to one floor. We persuaded the landlord to take back the 23rd floor of 714 m²

'The solution was to offer them a longer lease of five years for less space -- 993 m² -- enabling them to stay in the building.'

Adrian Funkey, commercial manager of the gaming south division of Sun International says his company needed the negotiation skills of CRES to put its case to the landlord.

'If CRES had not intervened on our behalf, the landlord would not have been happy to take back space we had battled to sub-let and we would have left the building entirely as soon as our contract ended. Now we are happy to stay and talk future business.'

Divisional director Garth Collins says the positive approach and speed with which CRES operates was a breath of fresh air.

'We are delighted for both Sun International and Cape Town that we have been able to stay in the central city with terms that suit us all. '

In the two years since CRES was set up by Old Mutual Properties to help create solutions to difficult problems in the property market, the division has renegotiated space for Mutual and Federal Insurance Co Ltd in Cape Town, Durban, Pretoria and Johannesburg. CRES has also successfully completed renegotiations for businesses ranging from Eskom to the Relyant group and Fashion Africa (Fashaf).

Last modified on Wednesday, 21 May 2014 18:15

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