Commercial Property Case Study

Phillips Law acted for the landlord on the grant of a lease to SRX Club in Basingstoke. Our client held the premises under a long lease, with the local authority as superior landlord so, the transaction involved granting a sub-lease ensuring it remained consistent with our client’s own lease obligations.

A key feature of the transaction was a bespoke rent model linked to the tenant’s EBITDA, rather than a fixed annual rent. The lease included quarterly EBITDA certificates, verification requirements, audit rights and provisions allowing the landlord to calculate the rent where financial information was not provided.

During the transaction, we confirmed that a historic rentcharge affected only the superior freehold title, not our client’s leasehold interest, removing the need for indemnity insurance and avoiding delays. We also identified and corrected an error from the previous lease plans before completion, preventing potential registration issues.

The lease was contracted out of the security of tenure provisions under the Landlord and Tenant Act 1954, ensuring the tenant would have no automatic right to renew the lease at the end of the term. We also confirmed that existing Chancel Repair indemnity insurance remained in place.

SRX Club brings coach-led small group training into commercial buildings, creating a genuine wellness amenity.

Sessions are capped at 6 people, with no mirrors, this means members train with proper coaching rather than working out in isolation. Our philosophy is “Strength Prescribed”, we treat exercise as a prescription for an individuals health, with community and accountability driving real results and long-term consistency. – Sam, SRX Club

Landlords receive a share of the club’s profits in return for hosting the facility within their building. This means the facility is commercially self-sustaining while still delivering a premium, low-cost benefit to the people working in the building. SRX Club is open to all, whether you’re a tenant in the building or a member of the public looking for a serious, supportive training environment. We’re aimed at people who want more than a standard gym: those who value coaching, structure, and a community that keeps them showing up. For landlords and their legal teams, the appeal lies in tenant retention and wellness ROI, backed by a clear EBITDA split and defined operating terms.

The lease completed successfully, delivering a commercially robust arrangement that met both parties’ objectives while protecting our client’s long-term interests.

Whether you are granting a lease, acquiring commercial premises or negotiating complex lease terms, our Commercial Property team provides practical legal advice tailored to your transaction.

Discover how we can support your next commercial property matter by getting in contact today.

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