Client: PSA Peugeot Citroen, Leicester

Car manufacturer, PSA Peugeot Citroen has an existing lease on a 20,000 sq ft property on the outskirts of Leicester, which it uses for car showroom and workshop purposes.

At its latest rent review, the landlord proposed a rental increase of 24% above the passing rent. Peugeot appointed us to negotiate on its behalf.

Solution
Located near Fosse Shopping Park to the south of the city centre, the property was masked from the main road and had awkward access as well as being larger than most of the comparables. These factors proved key argument during the negotiations, as the opposing surveyor presented comparable evidence of modern, prime pitch showrooms.

Unable to agree a revised rent, and due to persistent delay by the landlords’ agents, an application for third party determination was made. The independent expert agreed with our evidence and arguments, and determined the rent in our favour – reflecting a rental uplift of 4%.

The results
We reduced the initial proposed rent by 21%, providing our client with savings of £114,750 over the next review period. Furthermore, our third party costs submission was successful, and the landlord was to incur all of the costs.