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Background
Solution 6 is a leading supplier of software and services
to time-based professionals. The client base is spread
throughout the United Kingdom, Ireland and continental
Europe. The company is part of a global software group,
which has been operating since 1981.
Significant company growth led the Solution 6 Board
to review their physical location needs at a time
when building capacity had been extremely stretched
and growth potential was limited. A break option 18
months hence provided the opportunity for Solution
6 to meet business growth needs and an alternative
location was identified.
Enable
were asked to develop an accommodation strategy, based
upon a review of the strategic options available and
an assessment of the cost and benefit impact of taking
more space in the current location against relocating
to new premises.
What we did
Firstly we carried out in depth property due diligence
to assess the business opportunity to exercise the
break. This included opening negotiations with the
landlord and other tenants in the building, to identify
a way of overcoming the limitations of space and basic
facilities. At the same time a search of available
premises covering 20,000sqft on the open market was
carried out.
Our property due diligence identified that the alternative
location identified by Solution 6 provided the best
overall option. However, fierce competition for the
property meant that Solution 6’s prospective
new landlord had the highly attractive potential of
letting 80,000sqft to a single occupier, rather than
fulfil the 20,000sqft requirements of our client.
We were confident that through intelligent negotiation
grounded with experience and understanding of the
precarious nature of property transactions and our
detailed market knowledge we would achieve our client's
objective despite the circumstances. We maintained
an ongoing relationship with the landlord, highlighting
the potential change in market conditions and the
landlord's risk management and contingency should
the transaction should fail.
Our insight and persistence was rewarded when the
landlord agreed to reopen negotiations on improved
terms with the benefit of a weakening market.
The results
The preferred location was secured with an enhanced
incentives package including reduced rent and maximised
lease flexibility, giving Solution 6 the potential
to expand in line with their business plan. |
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