The Norwich Business Space team recently let 31 King Street in the centre of Norwich to Flagship Housing Association
Acting on behalf of Minotaur Investments, a new 16.5 year lease was entered into, with a break clause at 11 year & 6 months at the asking rent of £195,000 per annum. 12 months rent free was agreed and there were also 5 yearly upwards only rent reviews. The rent equated to £13.70 per sq ft.
The building was originally purchased at auction in July 2014, with the benefit of a lease to Vodafone, which expired in April 2015. Vodafone then vacated the building and it was clear they wouldn’t be renewing their lease.
Jason Menezes and his Building Surveying team, then set about agreeing the dilapidations and in October finally agreed a financial settlement with Vodafone of £700,000.
Refurbishment works then commenced with the Business Space Agency team having an input into the works from a marketing perspective, which included repositioning the reception to the eastern end of the property to make better use of the ground floor, a redesign of the front elevation and importantly providing an additional 9 car spaces, most of which were in the basement of the building to give a total of 38. The specification included the provision of air conditioning, raised floors and new carpets to provide flexible, open plan offices throughout, with the cost of works being £800,000.
Shortly after completion in March, the building begun to attract considerable interest. At 14,750 sq ft, there were no other self-contained properties of this size in central Norwich, and the car parking ratio of 1 space: 388 sq ft was proving to be a major selling point. A good number of potential occupiers looked at both the whole building and individual floors, against the backdrop of a decreasing supply of modern high specification offices in central Norwich.
The lease to Flagship finally completed on 1 September and they will shortly be commencing their fit out prior to relocating to the building from Keswick Hall just to the south of the City.
Will Jones who heads the Commercial Team in Norwich and who advised Minotaur comments:
“I am pleased that we were able to offer our client robust advise based upon our market knowledge, which ultimately resulted in considerable value being added to the property. It was a real team effort, with the initial lead being generated through our lease consultancy team and then the agency and building surveying teams working closely together thereafter”.