DELL Computers

Leipzig, Germany 180,000 sqft dell.com

Services Provided: Asset Management Tenant Services Site Selection Services

A world leader in computer hardware, DELL Computers has penetrated the global marketplace.

Overview

Dell contracted IPG to act on their behalf to secure and develop locations in Halle and Leipzig during one of the company’s most extensive EU expansion efforts.

IPG Services Provided

Location Analysis for Multiple Sites in Halle and Leipzig, Germany
Architectural Design Studies
Identify and Select Construction Firms
Identify and Select Developers
Secure Investment Capital for Halle Project
Negotiate European Development Funds with State and Local Subsidiaries
Negotiate with Local Labor Department

Assignment & Process

Dell required the development of a permanent site to house its European call center.
From start to finish, it needed to be ready for occupancy by DELL within 12 – 15 months, maximum.
The location, as well as the infrastructure, needed to be the best to assure Dell’s growth potential in a competitive market.

The Challenges

Navigating the ins and outs of a small, undeveloped German real estate market

We needed to build new relationships from the ground up

Overcoming local protests to tearing down a long-abandoned, 19 th-century sugar factory

The overarching challenge was navigating the ins and outs of a small, undeveloped German real estate market. We—both IPG and Dell—were new players in the region, so we needed to build new relationships from the ground up.

We acted as representatives for Dell’s local management team, facilitating dialogue between their UK-based European head office and US-based executives as well as the local workers union.

To succeed, we needed to build a rapport with the town government, the planning commission, the labor department, local real estate developers, environmental activists, history preservationists, and several European construction firms.

One of the biggest challenges was in overcoming local protests to tearing down a long- abandoned, and now derelict, 19 th -century sugar factory and to assure move-in and full operation within 15 months after lease signing.

The Success

180,000 SF Secured

Lease Value: €6 Million

Total Savings Realized for DELL: €5.2 Million

Erich Struzyk led the real estate team and successfully concluded the project within the agreed timelines and facilitated the company’s move from a temporary site to their new home.

180,000 SF Secured
Lease Value: €6 Million
We sold the completed project to an Israeli pension fund and offered to split the brokerage fee (paid by the buyer) with DELL, which they leveraged internally to fund their fit-out costs
Total Savings Realized for DELL: €5.2 Million.