The scope of the project ranged from finding a site location through to procurement and project management of the £6.75m construction and fit out works.
A project six years in the making
In 2006, Henderson acquired the leasehold interest in the 88,000 sq ft Home Decor unit in Mosbrough for £5.7m. After identifying the potential for a supermarket development on the site, Henderson acquired the freehold in 2010 and agreed to sell it to ASDA for £16m, providing the supermarket group could secure outline planning permission and it could relocate Home Decor.
5.3 acre site acquired for 110,000 sq ft facility
In December 2010, we were appointed by Henderson to acquire a plot of land large enough to accommodate a new 110,000 sq ft manufacturing and administrative facility for Home Decor. Following an extensive site search, we acquired 5.34 acres of land at Woodhouse Mill from Sheffield construction group JF Finnegan, who were contracted to build the new unit to an agreed specification as part of the deal.
Relocation facilitated by mutually beneficial terms
The rent remained the same as at Home Decor’s original site in Mosbrough. However, the 15 year lease included the provision for rental increases every five years, linked to the rise in the Retail Price Index, but with a minimum of 2.5% a year and a maximum of 5%.
Transparent reporting enabled smooth project transition
In January 2011, we were novated from Henderson Global Investors to act on behalf of Home Decor to ensure the smooth running of the construction phase.
Project challenges overcome through robust advice
Work on the site commenced in July 2012, with construction reduced to a five month build time to aid Home Décors production requirements, limit downtime costs and ensure relocation prior to the start of 2013.
Design elements implemented to reduce costs
Costs were kept to a minimum, with the Category B fit-out budget being capped at £1.75m, despite significant design changes to the mechanical and electrical systems to ensure energy efficiency savings over and above industry standards and the imposition of a sprinkler system to keep insurance costs down.
Skilful project management ensured timely completion
Snagging works were identified and dealt with during the construction process in order for Home Decor to take occupation of the facility immediately after Practical Completion was issued in December 2012.