VGI Partners

Facing an upcoming lease expiry, VGI engaged Tenant CS to conduct a Stay vs. Relocate Analysis to assess their options.

Client Overview

No. of projects:
Multiple Projects
Single Project
Size:
480 sqm
Locations:
Sydney
Location:
Sydney
Industry:
Wealth Management
Project Type:
Stay vs. Go Analysis, Lease Negotiation
Project Types:
Stay vs. Go Analysis, Lease Negotiation
About the company
VGI Partners is a high conviction global equity manager that looks after the wealth of high net worth individuals, private wealth management advisory firms and endowment funds. The company is based in Sydney and New York.

Featured Project

At a glance

The Brief

With an upcoming lease expiry and demolition works happening close to their existing office, VGI wanted to assess the market alternatives to their existing premises. Being a stand-alone, heritage-listed terrace house, finding similar options in the desired area would be a challenge.

VGI appointed Tenant CS to canvass the commercial market for alternative heritage-listed properties and to benchmark rent levels in case an extension to the existing lease could be negotiated.

The Results

Tenant CS undertook the following:

  • A street-by-street inventory of heritage buildings and available options within the preferred area was provided to the VGI Partners team
  • A benchmark level for rent was determined based on similar available heritage properties and A-grade premises
  • Inspections of selected premises were conducted, lease proposals requested, and a shortlist was created based on suitability
  • Terms for a possible lease extension were discussed with the existing landlord, with a focus on reducing future ‘make-good’ obligations and disturbance of quiet enjoyment
  • Secured the most suitable and preferred option

The property search showed that alternatives for heritage buildings were extremely limited. A rental benchmark also revealed that the rent that VGI Partners was paying in their existing premises was fair, and, in some cases, lower than the market average.

An extension to the lease was negotiated against benchmarked and realistic future rents. Particular focus was paid to mitigating the risks surrounding future demolition works and re-negotiating the existing ‘make good’ clause to a bare minimum.

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