Sanderson Weatherall were instructed to act on behalf of the tenant, Royal Mail, in respect of a rent review of their 29,000 sq ft delivery office in Warrington. The Landlord had served a notice proposing a 40% increase in the rent. Through negotiation and identification of tenant improvements the Landlord revised their position to a 4% increase. We were of the opinion that no increase was applicable.
The dispute was referred to Arbitration with Sanderson Weatherall submitting Expert reports on behalf of Royal Mail. The Arbitrator’s award was that the rent review should be documented at nil increase. Sanderson Weatherall had protected Royal Mail’s position in respect of costs by serving a ‘Calderbank’ offer on the Landlord to settle the dispute at the passing rent, as a result, the costs of the Arbitration procedure were also awarded against the other side.
I am delighted at the settlement achieved for this rent review. Excellent and good professional work from Aidan. He correctly advised us to proceed to arbitration resulting in a nil increase at the review. Well done again Aidan.
Brian M. Thorrat, Royal Mail Estates Manager