Mishcon de Reya has set up an innovative management structure for its new building in Holborn, central London
The equity partners of the firm have set up a separate limited-liability partnership (LLP), which legally owns the freehold of the building. Mishcons has the lease and pays a monthly amount into the LLP. The firm originally bought the freehold from developer Chelsfield, which made a £1m profit on the sale. One central London surveyor estimated the value of Mishcons' building in Red Lion Square to be £25m. This means that the 40,700sq ft property would sell at an estimated £595 per square foot. The LLP structure is a rare move for a law firm, with most choosing to rent. If they do own them, they are more likely to set up a company to manage the freehold. Mishcons is believed to be the first high-profile London firm to use this management structure. The LLP is named Summit House Property Partnership, after the name of the new building.