01—Abstract
Summary
Summary of the 8-K filed December 16, 2016. Cited figures are marked; the original filing is the authoritative source.
Take-Two Interactive Software, Inc. (TTWO) announced on December 12, 2016, that it has entered into a material definitive agreement for a new lease.
This agreement concerns a significant office space in New York City, with entrances at 1133 Avenue of the Americas and 110 West 44th Street. The new lease is for approximately 61,383 square feet and has an initial term of roughly 16 years, expected to commence occupancy by late 2017.
The company plans to maintain its current 622 Broadway location concurrently. This strategic move indicates expansion or consolidation of its New York operations, with substantial long-term rental commitments.
02—Key points
Key Highlights
- Entered into a material lease agreement for new office space in New York City.
- The new premises have entrances at 1133 Avenue of the Americas and 110 West 44th Street.
- Lease term is approximately 16 years, commencing December 12, 2016.
- Expected occupancy by late 2017.
- The leased space totals approximately 61,383 square feet.
- Aggregate committed rent for the initial term is approximately $71.9 million.
- The company retains the option to extend the lease for an additional 10 years and an option to lease additional space in the building.
03—Questions
Frequently Asked Questions
What is the main purpose of this 8-K filing?
The main purpose of this 8-K filing is to announce the entry into a material definitive agreement, specifically a new lease for office space in New York City.
What are the financial implications of this new lease agreement?
The lease has an approximate 16-year term with aggregate committed rent of about $71.9 million over the initial term. Annual rent starts at approximately $4.4 million and escalates to $5.1 million in the final year, exclusive of taxes and operating expenses. This represents a significant long-term financial commitment for the company.
Will Take-Two vacate its current 622 Broadway office?
No, the company intends to continue leasing and using its current premises at 622 Broadway, New York, New York, even after moving into the new space.
Does Take-Two have flexibility regarding this new lease?
Yes, the lease includes an option for the company to extend the term for an additional ten years. Additionally, the company has an option to lease further office space in the same building if it becomes available during the lease term.
04—Continue