Key challenges
Huge expansion and significant growth targets with specific requirements on lease agreement.
- Booming pet ecommerce business that needed to source a facility in QLD to improve speed to market capabilities with existing and future customer base.
- Inability to enter into QLD (NSW based decision makers at Pet Circle) during COVID, meant Pet Circle had to commit to a facility sight unseen.
- Huge expansion of SKU profile and significant growth targets.
- Allowed four months to find a suitable facility (from initial meeting between Pet Circle and TMX to legal execution and go live).
- Preferred asset was sold with a rental guarantee, therefore, had to negotiate with two institutional owners.
Our approach
Utilized local market expertise to identify a suitable building in line with conceptual design and sizing needs.
- TMX supply chain team engaged to validate Pet Circle anticipated sizing needs. TMX assessed a number of warehousing capacity scenario’s (automation v manual, full v partial SKU range, YOY growth projections, etc.) and determined the impact across the wider network.
- Created a conceptual design of the optimum Brisbane warehouse layout.
- In parallel we utilized our local market property expert to identify all the suitable existing building and speculative developments (within a wide range) available in the market place that were both on and off market.
- Sourced a property solution aligned to Pet Circle’s future business objectives (in particular a relatively short tenure of 5 years for a building of this scale).
- TMX provided expertise through project management, identifying base building upgrades required to meet the specific operating needs of Pet Circle.
- Undertook all the HOA negotiations to ensure limited risk for Pet Circle, in particular early occupation and flexibility to set up operation.
Pet Circle are expanding our network and with our first project in Brisbane we needed to engage with a service provider who could move fast. The results TMX achieved for Pet Circle in all facets of this project within a short time frame were outstanding.
— Nick Bennett, Head of Operations, Pet Circle
The results
- Identified a facility in a catchment area within a one-hour drive of a population of 2.9 million (1.2 million households), ideal for the servicing ambitions of Pet Circle.
- Provided Pet Circle with strong recommendations based on logical and objective data analysis and supply chain expertise on their future sizing and operating model to maximize business performance both in Brisbane and across their wider network.
- Sourced a speculative building well under construction with all the design attributes required by Pet Circle, in particular expansive awnings and a 51-meter hardstand which allowed significant room for their “in house” fleet to park.
- Negotiated occupation of the adjacent building area (approx. 12,000sqm) for 5 months from lease commencement as gross rent free to assist Pet Circle whilst fitting out their tenancy. In addition, early access provisions were drafted into the HOA so they can “go live” in line with their timing requirements.
- Achieved an incentive equating to $3,570,000 AUD (25%) which was structured to suit the needs of Pet Circle (majority taken in year 1 of tenure) who required a short term tenancy (5 years for a building of this scale).
- Drafted into the legal documentation first right of refusal clauses to ensure Pet Circle’s property footprint aligns with the core business needs into the future.
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