Client: Cummins Power Generation
Our clients, Cummins Power Generation, identified an operational need for a new manufacturing facility on its site at Manston in Kent. David Moule met with the client to formulate a strategy for the selection of an appropriate development partner to provide a building of 114,800 sq.ft in line with the original brief on the nine-acre site on a joint-venture basis.
After receipt of expressions of interest, submissions and a two-phase developer interview process, a developer was selected to work on the Cummins scheme in more detail. The developer worked up the detailed design for tenant’s fit-out and costs on an open-book basis, prior to submission of a detailed planning application to Thanet District Council.
Following an internal review that established the scale of further business growth, the building size was increased by 33% to 171,300 sq ft and to link in with the existing manufacturing plant. This meant more work was required on key aspects of the transaction.
To provide further leverage to the lease negotiations for the increased size of the building in line with Cummins' Corporate Real Estate strategy, further requests of interest were requested, which resulted in a 'best bids' selection process. The selection process that included a SWOT and FMEA analysis generated a much-improved deal for Cummins; the covenant strength of Cummins and lease term resulted in a highly incentivised package to include a rent free period and capital contribution to fulfil Cummins fit out requirements.
As part of the due diligence for Cummins, David Murgatroyd, a partner in our Birmingham building consultancy team advised Cummins on the various snagging items post-practical completion.
Note:
Cummins Power Generation's parent company is Cummins Inc. Cummins Inc., a global power leader, is a corporation of complementary business units that design, manufacture, distribute and service engines and related technologies, including fuel systems, controls, air handling, filtration, emission solutions and electrical power generation systems. Headquartered in Columbus, Indiana, (USA) Cummins serves customers in more.
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