Fortune Global 500 Energy Company Lease Renewal - Mozambique, Maputo - Source8
Fortune Global 500 Energy Company Lease Renewal – Mozambique, Maputo
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Fortune Global 500 Energy Company Lease Renewal – Mozambique, Maputo

Client: A Top 5 Fortune Global 500 Energy Company

Size: 1,100 sqm

Brief

  • Our client wished to secure a renewal of their existing lease in Maputo as well as renegotiate and clarify parts of the original lease which remained unclear due to the building being under construction at the time the original commitment began
  • Due to lack of suitable supply, relocation was not an option yet cost mitigating any potential uplift in costs was still a high priority

Challenge

  • The stock of good office space in Maputo is growing slowly, yet at present the lack of suitable large sized space has created a landlords market with rents increasing to match
  • Certain clauses in our client’s existing lease allowed for misinterpretation meaning that our client had no security of tenure and thus were in occupation through holding over the current expired lease
  • As no reaction to landlord requests had been received from our client for over six months, the landlord had served 3 months notice to vacate, all leading to weak negotiating position

 

Solution

  • Source8 was able to travel to country to undertake face to face negotiations with the existing landlord, explaining the situation in context of the market and the international processes of a corporate client
  • Despite the weak base, Source8 was able to negotiate a reduction in rent for the extension, automatic renewal options giving security of tenure and clarify number of ambiguous clauses from the original leases

Value added

  • Source8, with an in-depth understanding of the situation, the client, the market and the cultural subtleties was able to go to the country and directly negotiate a favourable deal resulting in savings for our client against the landlord’s first offer

Locations

Contact Source8

info@source8.com

+44 (0) 20 7752 0700

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