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Case Study

Holden New Zealand

Situation

Holden NZ currently hold a lease over a 12,000sqm warehouse in Wellington servicing all vehicle dealerships throughout NZ. The premise lease expires in October 2009.

Key Issues

  • Costs to the business to provide parts to dealerships outside of Wellington justified a relocation in closer proximity to the majority of dealers and a major port resulting in reduced service and delivery times.
  • With service provider agreement and premise lease expiring within a similar timeframe, the opportunity existed to analyse the cost effectiveness of a potential relocation within NZ.
  • A search of the marketplace identified several possible relocation options in Auckland.
  • Accommodation and capital costs, amount and efficient use of floor space and lease flexibility were key considerations in assessing future operational needs.

Jones Lang LaSalle Approach

  • Jones Lang LaSalle investigated both existing and proposed warehouse developments, providing details as to the timing for entry into the premise and availability of racking.
  • Jones Lang LaSalle provided market research data and commented on risk surrounding potential options.
  • Possible consolidation opportunities were investigated.
  • Cash flows were developed to analyse the short-listed options taking into consideration tail end obligations in respect of all other Holden NZ premises.
  • Holden NZ were able to justify the acquisition of a suitable warehouse with expansion opportunities, and adjoining office space for the future consolidation of all NZ operations on to a single site.

Outcome

  • Jones Lang LaSalle secured 6,500 sqm of flexible warehouse and office accommodation with expansion opportunities that would allow HNZ to consider phased consolidation of the entire New Zealand operation into a single site as required.
  • A short term lease including a termination clause was negotiated.
  • Racking was included within the deal enabling HNZ to complete the transaction within 4 months and enjoy a seamless transfer within a tight timeframe.

“HNZ has multiple stakeholders across both New Zealand and the globe and Jones Lang LaSalle were quickly able to mobilize and coordinate everyone to keep the project on course . With an opportunity to consolidate our NZ operations on to one site, the final outcome helped us achieve significant business and cost saving initiatives. Despite a challenging brief, Jones Lang LaSalle made it easy.”

Stephen Matthews – Parts Operation Manager

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