West End team signs the largest deal in the market this year for Akzo Nobel
12 May 2008
A substantial disposal and relocation transaction has been concluded
The West End leasing team has just concluded a substantial disposal and relocation for Akzo Nobel / ICI in London. Having previously advised ICI on its occupational strategy prior to the acquisition by Akzo Nobel, we were subsequently retained to dispose of 20 Manchester Square, London, W1 - a Grade A 70,000 ft² building pre-let in 2001 as a result of Akzo Nobel's HQ function being located in Amsterdam and acquire a new smaller London office.
The building was not openly marketed, we recommended that as it was such a unique opportunity the best result would come by placing it "off market" with five potential occupiers. This resulted in strong interest and the building ultimately went to best bids. After further negotiation Boston Consulting Group (BCG) offered the most attractive deal and terms were agreed to assign the valuable leasehold interest for a substantial premium. The passing rent was approx £61 ft² and the deal breaks back to a rent in the late £90's ft².
Simultaneously, we had to acquire a new London office to house the remaining staff and we negotiated an assignment of the 26th floor of Portland House SW1 from CLS Holdings at a passing rent of £44 ft² with a break after 2 years. The existing layout worked for Akzo Nobel so they are moving straight in, saving money on fit out, and getting the benefit of a break in two years time.
King Sturge advised Akzo Nobel / ICI throughout and Cushman & Wakefield acted for both BCG and CLS.
