Client GMA Garnet
6,458 sq. ft.
GMA Garnet Case Study
This project was known as “One Fugro”. Their objective was to bring two separate workforces of 150 people each together to create one team, 300 strong in a single location. They were seeking a modern office property with large floor plates to ensure the highest possible levels of collaboration between their teams.
Half the Fugro team was in a low standard suburban asset owned by Fugro and the other half were paying more than double the market rent in a CBD office building with a 3 year lease tail.
LPC Cresa were engaged to resolve their property issues to achieve “One Fugro."
LPC Cresa Tenant Advisory undertook a comprehensive search of the Perth CBD and West Perth property markets. Several suitable options were inspected, and a shortlist of properties selected for the negotiation phase.
Through detailed negotiations agreement was reached over two levels (1,500sqm each) at 1060 Hay Street, West Perth at better than market terms.
The terms included an immediate commencement date for half of their staff as well as a significantly delayed commencement date on the second 1,500sqm tranche of space. This allowed LPC Cresa to assist with disposal of the expensive lease tail, minimising any double rent scenario. Further, despite the delayed lease commencement date for a portion of the space, terms were agreed based on the then favourable tenant market.
The new premises were substantially fitted out and LPC Cresa Project Management assisted the client in minimising costs by reusing the best of the existing fitout (ex IBM) as well as ensuring that appropriate additions provided them with a striking new workplace.
LPC Cresa continue to work with the landlord of Fugro’s existing CBD property to identify a tenant that will allow a surrender of the lease and thereby allow Fugro to complete their one Fugro vision.
An agreement was negotiated up front with the existing Landlord to allow them to aggressively seek a new tenant. Our client is protected by paying an agreed fixed surrender amount based on the actual surrender date. The surrender amount is structured to reduce as the lease comes closer to the expiry date.
Scott, Meeting you and James was one of the best things that happened to Fugro and me. Impressed with your professionalism and gave me a little more belief in the property market. Hope our paths cross againJeremy Grant | Director Pacific