Fletcher Steel
Fletcher Steel’s property strategy was core to its business strategy and achieving their growth targets. The goal was to upgrade old distribution and manufacturing facilities, relocating five of the main operations to efficient new build facilities. The assumption was the improved facilities would result in other business improvements.
The photos to the right is the 10,000sqm new build at Christchurch. After the completion of this first project, similar projects in Dunedin, Hamilton, Auckland and another in Christchurch, quickly followed. Mark was responsible for completing the build plans and specifications, negotiating the development and lease agreements plus overseeing the developer during the construction period.
Services
Added Value
Persuading the Board of the benefits of new build facilities was easy; operational efficiencies, new cranes, better traffic management, health and safety improvements etc. Any significant rent increases relative to existing premises would not be considered. Therefore correct structuring of the deal and trading long leases (with Fletcher’s covenant strength) for acceptable rental rates, enabled large capital lease incentives required to invest in operations. Once the challenge of successfully completing the first build was met the others fell into place.