A large manufacturing company has acquired a 30,000 sq.m production building

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Philip Chaika, Partner, Head of IPG’s Warehouse and Industrial Real Estate Department.Estate: 

Given the general shortage in the industrial and warehouse real estate market, it was quite a difficult task to find an object with the options required by the customer. However, thanks to professionalism and immersion in the market, experience in deep technical analysis of objects and knowledge in legal aspects, we were able to choose the best option and go through the whole difficult path of approvals with the client. As a result, despite the significant number of interested parties, the company acquired ownership of a high-quality liquid facility for its own needs.

Note: We value the reputation and trust of our customers, so we intentionally do not disclose the participants and details of the transaction. 

Decision 

Initially, the company considered the area for rent 20 000 – 50 000 sq.m for the expansion of its production. The customer needed a production room with ready-made workshops, a large supply of electric power, crane beams and a railway branch. The request is complicated, as large objects with similar options are very rare for the St. Petersburg market. If there are single offers, then the areas are realized quickly and the competition for such an object is very high. 

After analyzing the market and working in detail in St. Petersburg and the Leningrad region, we offered the company several options from ready-made production facilities for rent to possible options for building its own facility. The choice fell on a modern industrial building of 30,000 sq.m. of a good degree of readiness with an adjacent land mass in the southern part of St. Petersburg, close to the city. The facility was owned by a large manufacturing corporation. The cost of the building is one of the highest on the market. 

The negotiations lasted 2 years. In such large projects, negotiations and approvals are multi-stage and take a long time. As brokers, we need to lead the entire process and communicate with both sides. The situation was complicated by high competition for this asset from other manufacturing companies. 

At first, the client considered renting and then buying out the object. During the year of cooperation, in addition to negotiations, our specialists offered alternative options and advised the customer on the market situation. There were no new offers, and the number of people willing to stay in this facility was growing rapidly. 

As a result, the company nevertheless decided to acquire ownership of the area. To do this, we have created a step-by-step roadmap from agreement of the contract to the moment of transfer of property. Thanks to the professionalism and high customer service, we were able to complete the transaction. 

Result

The company has received a modern high-quality facility that meets all the necessary options for its own needs. At the same time, the asset has a high investment attractiveness, and, if necessary, it is easy to find a tenant or buyer for these areas.

Источник: ipg-estate.ru