The Hive in Manchester’s Northern Quarter where creative agency, People Activation, have been based since 2015.
People Activation appointed TAG in May 2024 to dispose of its lease which was not due to expire until 8th June 2026.
TAG’s brief was to secure an assignment, sub-letting or early surrender of People Activation’s lease in such a way that minimised liabilities.
Fortunately, the quality of the office fit-out and the marketability of the building meant that it did not take long to identify a suitable replacement tenant in the form of Chroma Consulting.
As part of its negotiation, TAG was able to secure a premium for the lease from the assignee as well as a consideration for the existing fixtures and fittings. The premium that was paid reflected the benefit of the relatively low passing rent (i.e. £24.50 per sq.ft.) that TAG had previously negotiated when re-gearing PAL’s lease back in 2021.
The strength of the assignee’s financial covenant means that PAL’s contingent risks have been all but extinguished. The cash sums received more than cover the transaction costs allowing PAL’s shareholders to re-invest the surplus into their business.
If you would like help disposing of a lease on an office, retail or industrial property in Manchester or elsewhere in the UK, please call Martyn Markland on 0161 817 5007 or email him at mm@tenantag.co.uk.