Case Studies

Development Partnering

Sale and Leaseback

Development Partnering

By bringing together land, design, construction contract tendering and finance, Trilogie CRE was able to deliver all the components of this development. The client was able to remain in control of the project and secured their new facility at "wholesale costs".

Our Task

The client had two existing distribution depots in Taunton and Worcester, but wanted to relocate to Exeter, Bristol and Birmingham.

Trilogie CRE were asked to identify sites and for the Birmingham facility a two acre site was acquired from Sandwell Borough Council.  A forward funded sale and leaseback arrangement was secured from Strathclyde Regional Pension Fund. Trilogie designed a 44,000 sq ft warehouse with headquarter quality offices, obtained detailed planning consent and tendered the building contract.  Contracts on the land purchase, sale and leaseback and construction contract were exchanged simultaneously.  The fund purchased the site, paid the builder and granted a standard lease to our client at the prevailing market rental value.  The client was able to share in a development profit equal to 4 years rent.  This covered the client's relocation costs and provided a buffer during the early stages of the relocated business.

Outcome

The project was a success for the client. When the lease ran out, Trilogie repeated the process on a site nearby where we developed a state of the art warehouse and offices of some 80,000 sq ft. This time the project was forward funded with Standard Life and we generated a development profit equal to 3 years rent free. The rent on the new property is lower than the prevailing rents in the vicinity. The older property was returned to the landlord with only nominal liability for repairs as we had already identified that the landlord required the property for an alternative use.

Trilogie inputs

  • Site search
  • Design
  • Funding and legal negotiations
  • Construction contract tendering
  • Project management

For further information conatct Mike Pritchard - mjp@trilogiecre.com