IM Properties has been appointed by BMW to design and construct the largest non-production unit in the company’s global portfolio, near Munich.
In one of the largest logistics deals ever completed by a privately-owned Midland property company, BMW has signed a 10-year lease with IM Properties for its 800,000 sq ft flagship logistics facility.
The deal comes just six months after the Warwickshire-based company owned by entrpreneur Bob Edmiston saw grocery delivery firm Ocado acquire a site at IM’s Birch Coppice Business Park in North Warwickshire for a 575,000 sq ft so-called ‘customer fulfilment centre’, creating up to 2,000 jobs.
For the BMW deal the company was selected over a number of German competitors to manage and deliver the £22.6 million facility. Eight months of complex negotiations followed to acquire land from five separate German proprietors and planning approval was successfully achieved in August with construction set commence this month following the appointment of a construction contractor, which is currently out to tender.
Tim Wooldridge, managing director of IM Properties, said: “This is the single most significant deal IM Properties has achieved on mainland Europe. Securing a new lease to an occupier with the calibre of BMW perfectly encapsulates the investment strategy we have put in place to selectively seek institutional and added value opportunities in Germany. This is the first of a number of forthcoming active management initiatives we are bringing to our German portfolio as we continue to strengthen our presence across Europe.
“Being selected over German competitors is not only a huge coup for the company but also testament to our rapidly growing international reputation as a developer that consistently delivers on large scale, complex developments. Our commitment to this scheme is such that we will have a member of our development team on the ground in Germany for one day every week until this project is completed, ensuring a hands-on approach and seamless delivery of this challenging project.”
Representing the largest single BMW facility outside its global portfolio of manufacturing plants, the development encompasses a logistics hub, warehouse, loading tunnel, and cross dock facility. Completion is scheduled for early summer 2012 with the delivery of the facility timed to coincide with the production and subsequent launch of the new BMW 3 and 7 Series vehicles from the nearby BMW plants in Bavaria. The assembly plant currently produces 1,200 vehicles per day and has some 18,000 employees.
IM Properties was advised by a Knight Frank team headed up by Simon Reed. The project has so far taken three years of asset management and direct dialogue with BMW, culminating in the largest property deal in the consultancy’s history.
Mr Reed, partner in Knight Frank’s Birmingham consultancy team, said: “The completion of this deal follows significant investment from IMP and its advisory team, and is the result of IMP’s commitment to its ambitious investment strategy to selectively seek high quality and value opportunities to maximise its global real estate portfolio at a time of a flight to quality.”