Nestle South Africa – Head Office

Client

Nestle South Africa – Head Office

Brief

To significantly reduce occupancy costs at Nestle’s head office located in Bryanston. Size of transaction 10 000m².

Services Provided

Tenant Representation.

Solution

5th Avenue Properties working exclusively on behalf of Nestle, approached the cost reduction strategy from a number of angles. Sublet any additional space that nestle may have and renegotiate the existing lease terms and conditions in order to “mark rentals to current market.

5th Avenue Properties sourced a multinational tenant working in association with our partners in the USA to sub-let approximately 1 000m² of space which Nestle did not require in their building. The existing lease agreement was restructured in order to significantly reduce the rental through extending the lease agreement for an additional 6 years with market reversions mid lease in order to ensure that rentals remained in line with market.

Results

Savings generated for Nestle in excess of R80m from their original lease agreement and a lease structure put in place to future proof their tenancy allowing for expansion and further contraction if required.