• Site was not being utilised to highest and best use across its GLA of 2,000m2.
• Existing tenant could not afford the rent and did not require the entire building
• Low square metre rate due to business type not able to sustain across large building footprint, compressing the annual rent due to a total rent cap out
• Existing business did not have longevity or pose future upside to the owners
• Landlord and Tenant Legal Dispute ongoing
  

Greyfield Solution?

• Split the building GLA into 2 separate tenancies as opposed to the previous single tenant layout to maximise square metre rate and attract more favourable national tenants
• Sourced international, Blue Chip Recreation & Entertainment tenant to take 50% of the space
• Secured 20 year lease
• The first lease of half the building covered 80% of the previous total net rent
• Resolved and liaised between landlord and tenant to recover long outstanding arrears of $50,000
• Negotiated for existing tenant to relocate
• Leased the remaining half of the building to Blue Chip International Tier 1 Gym Tenant for $210,000
• More than doubled the value by exercising creativity
• Sharper cap rate moving forward for client due to significant improvement of lease covenants