Clipper Logistics plc v Scottish Equitable plc [2022]
We recently acted on this case, representing an institutional investor landlord of an industrial unit in an unopposed lease renewal under the 1954 Act.
At the core of the dispute was the level of rent payable and the length of the term - the tenant arguing for five years, the landlord seeking a 10 year term with a break at 5 years. The landlord's expert evidence was provided by Edward Neaves of Junction 10 Consulting, relying on comparables applicable to the precise factual context of the industrial unit, its location, transport links, physical features relevant to its value (docking bays, loading doors, racking, ratio of office space etc).
At trial, our landlord client achieved the precise level of rental it sought, along with interim rent at the same level.
A term of 10 years with a break clause was also awarded. Other drafting points were considered including flexibility around sharing of occupation with third parties, ensuring sufficient safeguards for the landlord, and provisions regarding EPCs. A resounding victory for the landlord and various drafting points learnt which we will be carrying through into logistics precedent leases.
Junction 10's expert evidence was fundamental in this case in being able to demonstrate sound evidence and comparables to support a strong rental level. Our industrial and logistics Real Estate team have worked closely with various sector specialists in compiling our I&L precedent banks. Should our industrial and logistics specific clients require introductions to our I&L sector specific experts, please do not hesitate to let us know.
