INSIGHTS | Expanding “Hermans Croquettes” with strategic industrial property acquisition
Client Overview: Ivan, the owner of food manufacturing business “Herman’s Croquettes,” found himself in an exciting, yet stressful position when his business, initially based in Lansvale NSW, outgrew the warehouse it was operating from, necessitating a new space to house its expanding operations.
The Brief: Ivan had a very specific brief. Aside from needing a larger warehouse in Western Sydney, the property needed to have IN1 or IN2 zoning, with a minimum floor area of 1,200 sqm including a 100 sqm+ office and amenity space. Moreover, the property had to allow occasional semi-truck access for deliveries, and Ivan preferred two roller doors for efficient receiving and dispatch operations. On top of this, ceiling height, power and parking requirements were important aspects of the brief.
The Transaction: Prior to engaging Costi Cohen, Ivan had spent 9 months searching for the right property for his business. After meeting the team at Costi Cohen and workshopping his mandate, we were able to uncover properties that matched the brief, which Ivan would not have had access to on his own. Not only did Costi Cohen find and secure the ideal property for Ivan’s within a 10-week period, it was purchased at a staggering 50 per cent below market value. This was largely due to the unrivalled relationships Costi Cohen have with Commercial agents, who provide countless off-market and pre-market opportunities that the rest of the market is unaware exist.
The Property: Costi Cohen sourced a property which consists of three large Industrial strata units, allowing Ivan’s business to occupy one of them, while leasing out the other two for investment purposes. This was particularly favoured by financial institutions involved in facilitating the transaction – which along with the property’s corner location, total building area of 2,640 m2, and proximity to transportation links, further added to its allure.
With a strong presence in an established Industrial area, the property offered an ideal opportunity for an owner occupier, presenting opportunities for future expansion.
Conclusion: Costi Cohen’s ability to identify the perfect asset and negotiate a purchase at such a substantial discount played a pivotal role in realising Ivan’s vision. His journey from a small food manufacturing business in Lansvale, to the owner of a quality Industrial asset with income producing capacity, demonstrates the value in engaging a team of commercial property experts, who know the market intimately and can negotiate the best possible price on your behalf. The new property not only met his immediate requirements but also positioned him for future growth and investment opportunities.