Key challenges
- Uniqlo’s Australian operations were operated under a third party logistics (3PL) arrangement with various service providers.
- With the rapid growth of Uniqlo’s Australian operations, senior management determined future distribution centers should be managed by way of direct lease vs pure 3PL.
- An initial site search was conducted by traditional real estate service providers however none of the options procured met operational or probity requirements by Uniqlo management in Japan.
- Uniqlo had a global automation partner in Daifuku, however the market process via traditional real estate agency prior to TMX’s engagement was unsophisticated and gave no consideration to the building requirements to house the automation system and required truck movements.
- Existing 3PL contracts featured contract expiry dates, Uniqlo had no appetite to extend which in turn created clear critical dates for the procurement of the new facility to consolidate operations.
Our approach
- Comprehensive review of pre-existing concept design and automation solution.
- Formally appointed via Uniqlo’s head office in Japan and their strategic project partner Fukuda and Partners.
- Closed expression of interest (EOI) process conducted on a confidential basis with multiple site tours with all global stakeholders.
- Risk assessment and due diligence on short listed sites and final site recommendations.
- Production of technical design brief in consultation with strategic global development partner and automation contractor.
- Tender and final award of developer.
- Project delivery including building and automation integration.
The results
- Fully considered and documented design ensuring seamless integration of automation solution.
- Face rent achieves 8% below market.
- Incentive secured 30% above market.
- 10-year lease term secured when the market was demanding 15 for a facility of this scale.
- Preferred site secured on the most competitive terms of all tenderers.
- All fitout (excluding automation) documented as based building, mitigating future make good risk for Uniqlo.
- 8 weeks early access achieved for final automation fitout and commissioning.
- All critical dates achieved eliminating the requirements for costly 3PL agreement extensions.
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