Cluttons was instructed by Pentalver Cannock, a subsidiary of The Maersk Company, to advise on the rent review of their 22 acre rail connected, container storage facility in Cannock. The site, previously a coal distribution depot used by UK Coal, was completely reconfigured by Pentalver, including levelling and the creation of surfaced yard for container storage and a transport depot.
- The landlord quoted an increase in rent of 42%. Cluttons’ Lease advisory team advised that the site was to be valued in its "as let" condition disregarding tenant’s improvements and reported an opinion of rental value below the passing rent. We were instructed to negotiate the rent review. Agreement could not be reached through negotiation and the matter was referred to an expert determination:
- The independent expert valued the property at 15% below the passing rent, resulting in a nil increase on review
- The landlord was responsible for all the expert’s costs in connection with the determination.
- How we helped
- Our attention to detail and detailed due diligence on the site revealed the following significant factors which had an impact on rental value:
- Environmental factors, including artificial badger sett and settlement pond containing protected newts which reduced the useable site
- Rail clearance restrictions which limits the size of containers which can access the site
- Mine water culverts running across the unimproved site.