PACE has clients ranging from developers, pension funds, listed property funds and private property owners.

 

BROKING & LEASING EXPERIENCE

 

 

 

 

 

 

BRIEF

Proctor and Gamble (P&G) felt the need to vacate their then existing premises due to various factors at the property which affected their use and enjoyment.

Pace/ C&W were mandated to secure a new office location of 4,000 m/sq in a prime location.

In addition Pace/ C&W were to negotiate P&G’s exit from their then current lease at the previous premises to P&G’s the best financial advantage.

 

APPROACH

Various options were identified and presented and full development proposals  were obtained from various developers.

This required full financial analysis of all options.

C&W analysed employee residential locations and mixed the information with points of interest for P&G such as public transportation, restaurants and services their employees were used to having, in order to define possible regions of interest.

 

RESULTS

P&G were advised of the best options available in the market with a full analysis of each culminating in a final selection being made based on cost effectiveness and location.

Illustrated that cost savings would arise from the relocation the a new built which offered more effective space planning, energy efficiency throughout the lease term and the security of an office park environment.

 

The transaction and lease have been concluded.

 

 

BROKING & LEASING EXPERIENCE

 

 

 

 

 

 

 

BRIEF

Provided options for a new 15,000m/sq head office and warehouse development

 

APPROACH

Various options presented and full development proposals obtained from various developers.

C&W analysed employee residential locations and mixed the information with points of interest for GE such as public transportation, restaurants and services their employees were used to having, in order to define possible regions of interest.

 

RESULTS

GE were advised of the best options available in the market with a full analysis of each culminating in a final selection being made based on cost effectiveness and location.

Motivated that GE remain in the existing location and redevelop the site which gave rise to cost savings of R10,000,000 in respect of tenant related costs.

 

The transaction and lease have been concluded.

 

 

BROKING & LEASING EXPERIENCE

 

 

 

 

 

 

 

 

BRIEF

Advised and negotiated for a new 4,000m/sq office development and relocation

 

APPROACH

Various options identified and presented, culminating in a renewal of the existing lease, these included site selections for a proposed new development of a head office building and analysis of existing options in the market which could suit relocation. A cost benefit analysis was conducted which illustrated that a renewal at the existing premises would be most cost effective subject to the negotiation of a market related rental with various improvement benefits for the account of the landlord.

 

 

RESULTS

Rental and cost negotiations effectively resulted in a renewal at 20% below market rentals and a favorable tenant installation allowance being achieved. In addition the landlord was induced to make capital upgrades to the property which included an overhaul of the air-conditioning plant and refurbishment of the exterior of the building.

 

 

The transaction and lease have been concluded.

 

 

BROKING & LEASING EXPERIENCE

 

 

 

 

 

 

BRIEF

To investigate Ericsson South Africa's lease profiles.

 

 

APPROACH

Identified an option, which Ericsson’s management had been unaware of pertaining to Ericsson’s 10,000m/sq head office space.

Advised Ericsson to exercise an option to purchase which was part of the existing head office lease. Ericsson was unaware of this option to purchase and were quickly convinced of the handsome reward which could be harnessed. Ericsson entered into a back-to-back deal whereby the existing landlord could purchase the property back thereby helping Ericsson escape tax and other liabilities.

 

Market related rental and other data were analysed and presented to Ericsson’s executive along with strategic recommendations and input on tax and legal requirements which would need to be met. A full project team was assembled to deal with all aspects of this transaction as it was evident that the matter could only be resolved on arbitration as this mechanism was provided for in the lease.

 

Pace/ C&W managed and advised on all aspects of this transaction

 

RESULTS

The arbitration ruled in favour of Ericsson.

 

Ericsson could then enter into a new lease for seven years at a rental lower than market value and receive a cash bonus payment of R30 million to use at their discretion.

 

 

BROKING & LEASING EXPERIENCE

 

 

 

 

 

 

 

BRIEF

Advised and negotiated for a new 12,000m/sq distribution centre in Durban, South Africa

 

 

APPROACH

Various options were identified and presented. These options had to be reviewed in light of the business strategy of this client, which relied on effective utilization of container transport routes and proximity to the port of Durban. Ultimately only properties within a certain radius could be considered based on the business needs of the client. Katoen Natie were advised of the best options available in the market with a full analysis of each culminating in a final selection being made based on cost effectiveness and location.

 

RESULTS

On behalf of the tenant a rent free period and substantial upgrades to the property were negotiated, these upgrades included improvement of the power supply, construction of loading bays and the development of an office facility to accommodate the on-site team.

 

The transaction and lease have been concluded.

 

 

BROKING & LEASING EXPERIENCE

 

 

 

 

 

Brief

Fluor SA (Pty) Ltd wished to renew the existing lease for a further  5 year period over  8000m².

 

Approach

We investigated the renewal option and at the same time performed a space planning exercise for them, which proved that due to the age and design of their existing premises they could reduce to 5,600m²

 

Result

A new building facility was sought for them in Woodmead and due to energy savings and new efficient space planning approximately R30million would be saved over 5 years

 

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