Hallmark managed this multi-let technology park on behalf of clients. The second largest tenant had signalled its reluctant intention to relocate to accommodate its expansion needs. Given that the park was let to full capacity, the tenant was forced to explore other alternatives.
Hallmark’s management met the tenant’s directors and advised them to consider a proposal whereby Hallmark would construct an additional wing to the property according to the tenant’s specifications. The tenant enthusiastically agreed, preferring this solution to relocating to new premises and thus agreed terms. Hallmark then orchestrated the planning and project management for constructing the new wing.
As a result of Hallmark’s innovative solution, the tenant agreed to a new over-riding lease on the entire premises, including terms which generated an attractive yield on the capital expenditure for the new wing. By expanding the facilities and re-securing long term rental income, Hallmark flipped the property’s emerging vacancy into enhanced capital value.
Case in Point
Hallmark’s hands-on approach to asset management created a platform for out-of-the-box problem solving, turning what would have been a loss, into a gain for both client and tenant.
Map data: Google, DigitalGlobe