Corporate Real Estate
Manufacturing Client
Background
We have acted on behalf of a major manufacturing client with premises in the North East. The client manufactures hi tech parts for the Motor Industry, supplying customers throughout Europe and the rest of the world. The market is very competitive and suppliers and manufacturers are expected to realise efficiencies annually. We have advised on a variety of property related issues which have helped improve the overall efficiency of the organisation.
The Issues
- 750,000 sq ft 1950s factory with 40 acres expansion land;
- Major backlog repairs and ongoing maintenance required, particularly to roof;
- Pressure to improve efficiency of manufacturing operation; and
- Investment required to develop new products and to remain market leader.
The Solution
- Planning consent obtained for both retail and residential development;
- Co-operation of Public Agencies sought to facilitate planning and grant assistance;
- Phased disposal of surplus property to mitigate disruption to business; and
- Eventual relocation of production to the Enterprise Zone where Capital Allowances and rates exemption were available.
The Benefits
- Capital receipts of over £30 million;
- Relocation to new facility of 180,000 sq ft;
- Property running costs reduced by over 70%;
- Increased operational efficiency – ‘more from less’;
- Improved environment for employees; and
- Strong position in the market due to reinvestment of capital receipts and revenue savings.
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