Key challenges
Significant growth targets that existing facilities cannot accommodate, with limited time to procure an appropriate site.
Limited Time to Procure Site
Kumho had not allowed enough time to procure purpose-built facilities due to their upcoming lease expiries in South Australia, NSW and Queensland.
Required a Purpose-Built Site
Due to the nature of their inventory profile (storage of tyres) Kumho required a purpose- built property solution or an existing building previously occupied by a similar user. Desire to retain staff in all operations, therefore, a reluctance to move further than 10km from current premises.
Existing facility exceeded
Significant growth targets in NSW and QLD meant the existing facilities were not large enough to accommodate required future volumes.
Our approach
TMX and Kumho worked together to develop architectural drawings, whilst negotiating short term lease extensions.
- Undertook workshops with Kumho to draft the technical specifications and accompanying architectural drawings for each of the desired facilities required by Kumho.
- Coordinated the property procurement in all three states, inclusive of a short-term lease renewal negotiation in South Australia and relocation in NSW and QLD.
- Negotiated short term lease extensions at existing premises in both NSW and QLD so Kumho could benefit from purpose-built solutions.
- Represented Kumho throughout the HOA negotiations (TMX IP) and legal process (in consultation with their legal representative).
- Project managed the delivery of the precommitments in NSW and QLD.
We’re delighted to have worked with TMX to secure this new facility at Sydney Business Park. Its strategic location will ensure we are well-placed to better service our customers in the future by optimizing and enhancing our distribution capabilities.
The results
- Renegotiated a short-term extension in South Australia to align with the network strategy on more favorable commercial terms than Kumho was currently paying with only 3 months to lease expiry.
- Extended leases short term in both existing NSW and QLD facilities to align with “go live” of relocation assets to prevent duplication of rental costs.
- Created substantial savings from the successful owners first offer in the highly competitive stage 2 RFT process to the final agreed offer, this equated to $2.54 million (16.5% of the total rental over the term of the lease) and$790,072 (11% of the total rental over the term of the lease) in NSW and QLD respectively.
- Designed highly functional operational layouts (desired doors/docks, building shape, cubic capacity, etc.) and also met the stringent safety needs of Kumho (multiple street access points, drive-around truck access, truck only yard, etc.).
- Integrated $245,000 and $230,000 of provisional sums into the base building definition to prevent rental creep, a deduction in incentives, lessee obligations and future make good costs for Kumho.
- Project managed two complex distribution centers, ensuring what was encapsulated in our technical design brief was delivered during the construction phase within a tight timeframe.