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Key challenges
With strong demand for lifestyle and fitness products throughout the pandemic, the client reported double digit growth across all five of its core markets of automation, aviation, marine, outdoor, and fitness products resulting in an urgent need for a larger facility as soon as possible.
An existing lease legacy until 2026 with uncertainty around future growth, warehouse layout (requirement for VNA racking, etc.) and automation requirements. Internal approval was also required from overseas HQ in the USA when the COVID-19 pandemic was at its most active.
Our approach
TMX determined the optimum future state solution from a people, processes, infrastructure, systems and financial (inclusive of building sizing) perspective. TMX did this by:
- Undertaking a two-stage property procurement process, inclusive of Brownfield options (although not preferred) to create greater leverage in the marketplace.
- Issuing a TMX Technical Design Brief to the shortlisted owners so all bespoke items required by the client were included in the base building definition.
- Engaging internal architects within TMX to work with the client to develop an optimum layout.
- Representing the client throughout the legal process ensuring the key commercial terms and technical documents were correctly incorporated to protect client from start to finish of their lease.
- Throughout the construction phase project managed the building delivery to Go Live.
We directly negotiated the lease of our existing facility which in hindsight realize is heavily in favor of the landlord. We partnered with TMX as market leading experts to protect our interest and ensure this didn’t happen again.
The results
- Sourced a DA approved development that was able to meet the critical timeframe observed by the client.
- Negotiated an incentive of AUD $2,704,590.
- In addition to the incentive the owner absorbed AUD $420,000 of provisional sums to include all the bespoke items required in the future base building definition.
- Negotiated generous early access provisions into the HOA documentation to allow Go Live upon practical completion.
- Improved the building specifications (point load capacity) to provide future adaptability into the facility so VNA racking can be incorporated to increase storage density and integrate automation.
- Integrated additional environmental initiatives to reduce future operating costs.