Project: Transaction Management – Lease Re-Gear and subsequent Relocation
Location: 32/2 Moskovska Str., Senator BC, Kyiv, Ukraine
Leasable area: 2,126 sq. m
KPMG was occupying a historic building in the city center, with office space located on several levels. In the course of 2009 -2012 KPMG had a need to expand within the building and improve leasing terms by reducing rental costs. Cushman & Wakefield were instructed to represent KPMG in negotiations with their current landlord for lease re-gear including expansion. Subsequently, following more than 10 years of occupation, in 2013 KPMG faced the need to upgrade their space and sought professional advice whether to stay and incur improvement costs or to go to the market and find an alternative space tailored to KPMG’s corporate standards. Cushman & Wakefield was appointed by KPMG to provide tenant representation services to undertake in tandem a negotiation and relocation strategy.
In 2009 Cushman & Wakefield advised KPMG in relation to the expansion and lease restructuring of their existing premises. In 2013 Сushman & Wakefield undertook a technical survey of the historic space which enabled the client to understand the level of improvement required and enabled Cushman & Wakefield to commence negotiations with the landlord. Parallel market and financial analytics were undertaken and ultimately Cushman & Wakefield advised KPMG on the optimal solution to relocate to a purposely-built new Grade A building and secured the lease on the best market terms.
Through negotiations with the landlord conducted in 2009, Cushman & Wakefield achieved a reduction in the base rental, providing rental savings of around USD 2,000,000 over a five year term. Removal of KPMG obligation to reinstate the premises at the lease end resulted in savings of around USD 625,000. Cushman & Wakefield also succeeded in agreeing a more stringent service charge and provision of maintenance controls, including a clearly defined tendering process for Landlord’s works and limitations on the works which can be reclaimed by the landlord through the service charge interrupting the day-to-day business operations of KPMG.
In 2013-2014 following Cushman & Wakefield’s strategic advice, KPMG made a decision which resulted in relocation to Senator BC, a leading Grade A building. It allowed the client to significantly increase efficiency of the occupied space and improve working environment as well as provided expansion opportunities within the building.
“We are very pleased with the terms DTZ secured for us that will enable us to further invest in our business platform in Ukraine. DTZ proved to be absolutely dedicated to representing our interests, providing outstanding professionalism and expertise that were extremely helpful for negotiations with our current landlord…” said Floris Schuring, Managing Partner, KPMG Ukraine