Project summary
- FG were instructed by BGB Engineering Limited, as they had been approached by their tenant to renew the telecoms masts lease on their land.
- There were several drivers behind instructing FG including auditing the lease, ensuring the rent of the asset was in line with the market due to the impact of the Digital Economy Act 2017 driving rents down and to explore the potential of moving the telecoms asset to elsewhere on the site.
Solution
- FG ensured that the rent was in line with the case law decisions, including Vache Farm, Ewefields Farm and Port Talbot/Huntingdon/Audley House. Using an Alternative Use Value for carparking/storage.
- FG ensured an all-parties site visit was carried out with the operator's agent to review the access procedure and the siting issues of the mast being disruptive for the day-today business.
- Post the meeting, it was clear that the operator was not prepared to move the site but offered a flexible break clause to provide BGB Engineering Limited the opportunity to redevelop the site in the future.
- FG negotiated the Heads of Terms on behalf of BGB Engineering Limited and recommended a solicitor to draft the code agreement on their behalf and then were engaged until completion of the code agreement.
Benefits
- BGB Engineering Limited managed to achieve a rental/completion payment worth over 75% more than the initial offer to BGB Engineering
- The Heads of Terms were negotiated in good faith and ensured they provided BGB Engineering Limited with the necessary protections including the redevelopment break clause
