Orega Management Agreements allow landlords and occupiers to start earning income or mitigating costs from their space in under a year. The co-investment approach reduces the amount of day-one capital required, and the model delivers the investment payback in less than 18 months.
Based on a London illustration, a 10 year like-for-like lease at £50 per sq ft equates to a net effective rent of £40 per sq ft, assuming no breaks and the same starting point. The Orega management agreement will deliver £61.40 per sq ft.
With an Orega Management Agreement, investment is required in year 1 which breaks even in less than 18 months. With a 10 year lease, landlords face void periods, market incentives and investment in CAT A+ facilities, which will break even after three years.