Creating the illusion of leverage
Fujitsu had been looking to relocate from their current premises in New Zealand’s Wellington CBD as neither renewal nor extension were possible. Finding a suitable alternative, however, had been
hampered by the 2016 earthquake limiting building options. ResolveXO were engaged to develop a corporate property strategy that would allow Fujitsu to consider all the opportunities available while
creating the illusion of leverage. Fujitsu were able to relocate on the best achievable financial terms with a commitment in early 2023 to 2,300sqm in Wellington’s newest A grade office building at 40 Bowen Street.
- Extremely limited supply with the Wellington CBD having direct prime vacancy of 0.7%
- Prior to engaging with the market, ResolveXO conducted a confidential off-market review of available buildings and development sites revealing that there were only two suitable options for Fujitsu
- This knowledge allowed for the development of a strategy that maximised leverage by not issuing a public brief and, instead, directly approaching the owners of the respective buildings and development sites
- The preferred development site was selected and an extremely detailed and complex Heads of Agreement prepared that captured key commercials and delivery requirements to protect Fujitsu from delivery risk
- An attractive commercial package including no make-good requirement was secured. In addition, critical non-financial benefits were negotiated with the developer including significant damages provisions to protect Fujitsu in the event that the completion of the site was delayed
