A world leader in computer hardware, DELL Computers has penetrated the global marketplace. 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
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
1
Navigating the ins and outs of a small, undeveloped German real estate market
2
We needed to build new relationships from the ground up
3
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
1
180,000 SF Secured
2
Lease Value: €6 Million
3
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
