Kelvin Hughes selected a building for their HQ relocation of their Head Quarters although during the design stage, the costs of modification to provide a facility that met the client’s brief were rapidly escalating, beyond the anticipated project budget. Cushman & Wakefield were instructed to advise on the acquisition of an alternative building, more in keeping with the company’s image and that could be delivered within the proposed financial budget.
Following a thorough search of the market, a number of development opportunities and an existing speculative building were identified. One of the client’s key drivers was to make the acquisition and fit-out cash neutral within the financial year. Having analysed the rental and incentive packages available the opportunities available, it was felt that the existing building offered the best option.
Through the structuring of the lease, we were able to defer commencement of the lease and secure a rent free period from commencement of the term until the end of the client’s financial year. In addition to this rent free package, a capital contribution was paid to the tenant covering the substantial fit-out costs for providing a modern manufacturing facility.
The building and lease structure acquired have satisfied both the aesthetic requirements of the company’s corporate image and the financial demands of the project budget.
The fit-out of the unit is now fully underway and Kelvin Hughes are due to move in to their new Head Quarter Facility in the summer.