Client: Advantage West Midlands and Business Link West Midlands
Business support, information and advice organisation, Business Link West Midlands, recently appointed our agency team to acquire a new headquarters building in the Birmingham area.
The organisation - sister to inward investment agency, Advantage West Midlands - was relocating two complementary businesses into a single unit, to improve communication and operational efficiencies as well as securing good quality space.
To identify its optimum location, Business Link had researched where its staff lived and where visitors and clients were located, and identified an area west of Birmingham as a good location for its new office.
Solution
Within the given catchment area, we undertook a thorough market review of both existing and new opportunities. Having shortlisted two potential opportunities, we invited bids from both landlords and negotiated hard on achieving the best terms for our client. A key consideration for Advantage West Midlands was to protect its long-term position on the property, so we also provided strategic advice on its tenure options.
The result
Advantage West Midlands purchased the virtual freehold of a three storey, 27,734 sq ft headquarters for £6.5m (or £234 per sq ft) from developer, St Modwen. In order to generate notional income, we also negotiated an internal lease, based upon a headline rent of £17.50 per sq ft. This solution provided our client with the ultimate flexibility of its occupation.
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