Cube were instructed to prepare a Feasibility Study for relocation requirements of a large packaging manufacturer. The client leases a large distribution warehouse in the Midlands, which is due to expire in 2018, but a break will arise sooner.The study required an appraisal of the liabilities that would arise from implementing the break clause in the lease, together with locating to a new site within a 50 mile radious, which is to be built and occupied before the break clause was exercised.
Building of the new facility was to be such that there would be a seamless transition from their existing facility to the new.
Cube’s Approach:
It was imperative that Cube gained a detailed understanding of the client’s business, their objectives and future occupational requirements.
Cube thoroughly investigated the liabilities that would arise from the client’s vacation of the existing site. The dilapidations and rent premiums were particularly onerous and would impact on the timing of the clients move, thus had to be set out clearly in the report.
Cube undertook an in depth search of potential development sites in collaboration with the Client's appointed agent and shortlisted two sites. Two developers were selected and Cube provided both with an outline brief for the operational requirements of the Client. Cube then developed a document which addressed both the technical and financial aspects of the project so presenting the Client with two sites that met all of their criteria.
The critical issue Cube needed to address was the timescales of the project and the need for a seamless transition between the old site and the new site.
Key points included: planning permissions/conditions, the design of the building, location & access, value and specification, obtaining two cost proposals addressing both leasehold and freehold occupancies and the programming of the move to enable continuous production.
The comprehensive study was presented at board level, which included a Project Execution Plan of managing the existing facility and the delivery of the new facility.
Cube continue to work with the Client in planning phased stages that will ensure a seamless transition to the new facility which will have a new build value of circa £17m with a £12m fit-out.
