With completion of the extension leases of your current units prior to your occupation of the IDU, I thought now would be a good idea to update you on where we currently stand.
As you know, due to the delay in developing the IDU to the extent that the original deadline for completion was missed, we have completed a number of extension leases for your current units. These leases allow you to stay in situ for a further three months to 6 February 2018. After this date, it is expected that you will move into the IDU and continue to trade there until the final units have been developed.
In terms of the IDU, the Independent Certifier has confirmed that Practical Completion has taken place. This is in spite of some of the mezzanine columns purportedly being in the wrong place and some of the vehicle parking areas not being fully available. As David Blakemore of Cushman & Wakefield notes, in undertaking the role the Independent Certifier’s assesses the completeness of the building against a set of drawings and details, and apparently these showed the mezzanine columns in the current position and the external areas as they are currently hoarded.
I understand that you, the CGTA and the CGMA are in discussions with the developer over how these can be rectified. Whilst these discussions take place, there is little you and the CGTA can do other than to make representations to the CGMA and then wait and see what is agreed.
Should the issues not be resolved, you will eventually have to make a decision as to whether you want to move into the IDU or not. I say that you have a choice here because legally, you are not contractually committed to take the new lease. However, should you not take the lease, the CGMA in unlikely to be in a position to provide alternative accommodation and your current leases will end on 6 February 2018.
I will await the heads of terms and draft documents for the IDU leases which I expect will be prepared once the issues as outlined above are either resolved or otherwise accepted.