Trillian's Departure Makes Room for Prime Office Space in Melrose Arch
Category Commercial Property News
Trillian Capital Partners, a Gupta-linked company, made the costly agreement to leave Melrose Arch in March this year after multiple scandals. There was still approximately a year to go on Trillian’s lease but a mutual agreement was made between Melrose Arch and Trillian for the company to vacate.
The move cost Trillian approximately R3.65m in fees, excluding logistical moving expenses. Because Trillian decided to end their lease early, an R1.7m cancellation fee was paid by the company, according to Business Day. Trillian’s cash deposit of R1.85m was also withheld by Melrose Arch Investment Holdings, bringing the total to R3.65m.
The company has moved to a smaller workspace in Rosebank, and Melrose Arch’s high-end facilities will undoubtedly be missed by the controversial company.
Trillian, previously owned by Gupta Lieutenant Salim Essa, was involved in a scandal where the company allegedly earned millions by being a sub-contractor to Eskom and Transnet, through the McKinsey consultancy firm. Trillian supposedly did no such work and played more of an ‘insider’ role for consultancy firms who wanted special access to government-owned initiatives.
Amdec owns 75% of Melrose Arch, through its subsidiary Melrose Arch Investment holdings and they were heavily involved with the decision of Trillian’s dismissal. Amdec’s CEO and Melrose Arch spokesperson, James Wilson, has made statements saying that he was happy to be rid of Trillian as they posed a threat to Melrose Arch’s reputation. "Because of the negative nature of dealings by Trillian, it was in our best interests to no longer have them as tenant," Wilson reportedly said regarding the separation in an article published in The Huffington Post.
In April, Eskom began the legalities necessary in an attempt to recover the funds from both McKinsey and Trillian.
While McKinsey has displayed a willingness to pay back the money, Trillian has remained firm that they will not be repaying any money to Eskom and that their services had been delivered. In an article by Business Day, Trillian was also reported to have stated that James Wilson lied when saying he was happy to be rid of Trillian, signifying that they felt he would’ve happily continued their lease.
"We reached a commercial settlement at Trillian’s own request with the landlord. Amdec was quite happy to continue to receive payment of rentals from Trillian throughout Trillian’s tenure in Melrose Arch and would have continued to do so but for Trillian’s approach," said Trillian, in the Business Day article.
Commercial space at Melrose Arch averages around R200 per square metre. And with Trillian now gone, over 1900sqm of some of South Africa’s most prime office space has now become available.
The Trillian scandal and ultimate dismissal ensued barely a year after the company moved into their new, innovative office space at Melrose Arch, which included snazzy conference centres and business rooms.
Melrose Arch is a prime, mixed-use precinct and offers some of the most sought-after commercial properties in the country. The precinct offers over 150 retail outlets, top-notch security and eco-friendly offices. The dismissal of Trillian adds further esteem to Melrose Arch’s name as it shows that they do not treat controversial and potentially fraudulent tenants kindly. Melrose Arch’s reputation stands ever strong with the departure of Trillian. OfficePlace, commercial property specialists have many key office spaces to let in the affluent precinct of Melrose Arch. If you are interested in finding the perfect office space, contact an OfficePlace property broker today.
Author: OfficePlace Property Specialists
