Safmarine is a large shipping company that was taken over by A.P Moller of Denmark in the early 2000’s. With their long-term lease of 11 000m² at Safmarine House in Cape Town CBD coming toward an end, Safmarine began considering alternatives – new developments and other vacancies. In addition, with ever more clever use of furniture and design, they found that they required a lot less space than they currently occupied.
A team under my guidance interceded on behalf of Safmarine with the Landlord and negotiated a complex deal involving a market reversion rental in exchange for an additional 3 years on the lease as well as the immediate handing back of over 1 000m² of surplus space and the handback of a further 1000m² of surplus space after a further 12 months.
In the end, Safmarine had a more useful block of space at a very reasonable rental (almost 20% reduction), while the landlord had secured a lease extension of 3 years in a CBD market where it is hard to predict vacancy trends 3-5 years out.