01 The opportunity
Logistics space south of Frankfurt Airport. An idea that is extremely attractive to Four Parx GmbH, a developer of commercial and logistics properties. Large spaces in central locations are rare on the market and appealing to future tenants. However, when a sugar manufacturer’s processing space in Gross-Gerau was to be sold in 2015, there was a lack of a sufficiently experienced investor.
The right partner was found in AEW, an international asset manager. After careful consideration, AEW decided to purchase the site as an attractive addition to its LOGISTIS logistics fund. In four construction phases, the 120,000 square metres of processing space was to be converted into a sustainable logistics park in the heart of the Rhine-Main region. A challenging brownfield development.
And especially when such a project is financed via speculative open book development, smooth progression of the project enabled by solid technical project monitoring are essential for success. This is precisely why AEW asked our experts from the Project & Development Services team even before planning permits were obtained.
02 The solution
Is the hall floor level enough for the forklift trucks? Does the sprinkler system meet the requirements and is the fire protection concept correct? Does the floor plan provide enough space for heavy goods vehicles and are the cable routes in order? From the very beginning, the PDS project team worked closely with AEW, checking plans, contracts, permits and requirements. Always with the aim of fulfilling quality requirements.
The monthly on-site inspections and regular reporting ensured transparency: intensive discussions with the investor, general contractor and the developer dealt with risks and any necessary adjustments to the ongoing project. So that AEW could assess the progress of the construction at any time. An overall documentation of all expert reports later confirmed for the investor that the building had been constructed in a technically flawless manner and that all conditions had been complied with.
Our PDS colleagues also advised AEW as the owner regarding leases: Here, reinstatement obligations and tenancy conditions had to be clarified, which were related to the situation and the building materials used, for example. So that no disputes would arise when a tenant moved out.
To ensure that the logistics tenants' move-in went smoothly and all their wishes were taken into account, the team also monitored the fit-out for the respective tenant, checked invoices and supplements and followed up on open issues.
03 The results
"Despite it being our aim in every assignment, establishing a long-term partnership in the course of a project is never taken for granted. It is therefore all the more gratifying that we can now look ahead to the future together with our client."
Florian Großhauser I C&W Head of Project & Development Services München