Background:

This was a multi-generational, family business involved in niche manufacturing. The business had gradually expanded into adjoining properties: some were owned, some were leased.

 

The business, now landlocked with a disparate layout and floor levels, was being hampered operationally, efficiency-wise and its growth was being stifled.

 

Business owners were considering buying existing property, or buying land and renovating.

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Problem:

Business owners and management decided they did not have the time, nor the experience to investigate needs and to acquire correctly zoned property.

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Solution:

G&J was engaged to develop, and potentially execute, a strategy.

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We started with a detailed brief of needs, and investigated town planning, operational space and environmental needs (via consultants).

 

The market search commenced with 3 properties identified within a 12 month period. Due diligence were undertaken on all potential sites.

 

G&J also worked with the client’s financier and appointed a valuer.

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All properties were being sold via Expression of Interest (EOI) - a process that the clients were inexperienced with.

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Ultimately, G&J made offers on all 3 properties, setting reasonable limits to ensure a purchase could be made at reasonable value points.

 

Outcome:

A property was successfully purchased offering a larger space than the existing premises, and better operational efficiency. This choice of premises enabled the business to increase its output by almost 50% within the first year following its move.

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Gratifyingly, the market rental paid (to the Family Trust) on the new property was substantially less than the aggregated rents for the factories at the previous location. This increase in cash flow was then re-invested into the business.