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Key challenges
Uncertainty around future growth and urgent facility requirement.
With significant growth in their business, Invenco needed a facility as soon as possible, therefore, reducing their options to waiting for a greenfield solution was not preferable. Invenco also had an existing lease legacy until 2024.
There was also uncertainty around Invenco’s future growth, warehouse layout (requirement for multi-level mezzanine, etc.), and automation requirements.
As a private company, Invenco were tripling their footprint and looking to crystalize as much incentive up front as possible. While at the same time mitigating their bank guarantee exposure so they can continue to invest in their business.
Our approach
To address these challenges, TMX:
- Ran a two-stage property procurement inclusive of Greenfield options (although not preferred) to create greater leverage in the marketplace.
- Utilized the TMX project management team to create specifications that allowed for future construction of a mezzanine in the warehouse.
- Internal architects were used to demonstrate the functionality of Invenco’s preferred existing building (capacity potential and optimum layout).
- Represented Invenco throughout the HOA negotiations and legal process (in consultation with their legal representative).
- Project managed the integration of the bespoke requirements into the speculative development.
Their model was different to what we had seen, they seamlessly combine a multitude of inhouse skillsets at every stage of the process, providing us with expert advice. We look forward to a long association with TMX as we know we can rely on them from start to finish of a project.
The results
- Sourced a speculative development that had a practical completion date aligned to the preferred timeframe of Invenco.
- Negotiated an incentive of AUD$3,493,908 on behalf of Invenco, all of which will be available in the first 3 years of occupation.
- In addition to the incentive, the owner absorbed AUD$650,000 of provisional sums to include all the bespoke items required by Invenco in the future base building definition.
- Negotiated generous early access provisions into the HOA documentation to allow Invenco to go-live at practical completion.
- Improved the building specifications (point load capacity) with construction already under way to provide future adaptability into the facility so Invenco can construct a multi-level mezzanine to increase storage density and integrate automation.
- Additional environmental initiatives included to reduce the future operating costs of Invenco.
- Drafted into the legal documentation flexibility clauses that allowed Invenco to exit the premises during the initial term if their business expanded and required a larger footprint.