ALTRON
SIZE
19 203 m2
DESCRIPTION
Mitigate Lease Liability
DEAL TYPE
Sub-Let
LOCATION
Woodmead, Gauteng
PROJECT SCOPE
The client had circa 80% surplus office space to business requirements. Megatrend engaged to assess the options available to Altron to mitigate their lease liability and right-size their head office requirement.
SOLUTION
After Megatrend assessed the options available to Altron, the strategic decision was taken by the Altron board and Megatrend to engage in a sub-let project whereby individual buildings would be taken to market to secure sub-tenancy and mitigate their outstanding lease liability over the remaining lease term.
RESULTS
Megatrend managed to intercept one of the world's largest advertising agencies (WPP) during their global drive to consolidate their individual brands and/or sites into a single campus-style environment. Megatrend were also mandated by global cosmetic company Avon, who at a similar time were in the market for new office premises.
Megatrend were then successful in securing a sub-let encompassing 19 203 m² over the remaining lease term, resulting in circa 70% reduction of Alton’s remaining lease liability. This deal represents mutually beneficial outcomes for multiple parties:
- WPP were able to successfully end their 2-year search for an optimal campus style office solution.
- Avon were able to reduce their commercial office footprint, in line with their business restructure; WPP and Avon were able to gain utility from Altron’s existing (and recently done) fit out, thereby aligning with both business’ cost base limitations for a move.
- Altron were able to right size their head office property requirements.