IM Properties to construct BMW’s largest non-production unit

IM Properties has been appointed by BMW to design and construct the largest non-production unit in the company’s global portfolio near Munich, Germany.

In one of the largest logistics deals ever completed by a privately owned Midlands property company, BMW has signed a 10-year lease with IM Properties for its 800,000 sq ft flagship logistics facility located outside Munich.

Coleshill based IM Properties was selected over a number of German competitors including internationally renowned logistics providers to manage and deliver the €26m facility. Eight months of complex negotiations followed to acquire land from five separate German proprietors and enable the development. During this period, IM Properties’ development team coordinated the appointment of key consultants to the project alongside diverting overhead cables and appointing contractors to undertake initial ground works. Planning approval was successfully achieved in August 2011 and construction will commence this month following the appointment of a construction contractor, which is currently out to tender.

Tim Wooldridge, managing director of IM Properties commented: “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 were advised by a Knight Frank team headed up by Birmingham-based partner 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 regional consultancy’s history. Knight Frank has since been retained on a rolling contract by IM Properties to advise on its European property investment strategy.

Simon Reed, partner in Knight Frank’s Birmingham consultancy team, commented: “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.’

“Working alongside IM Properties in these lengthy negotiations with one of Europe’s strongest and more robust Corporate’s has been a challenge but ultimately it was clear that this property offered BMW the best occupational solution. Our retained position with IMP demonstrates the strength of the working relationship we have with our clients as well as the depth and breadth of our business’ knowledge base here in Birmingham.”

Established in 1987, IM Properties Plc is one of the UK’s largest privately owned property groups with close to £1bn of property owned and under management within the UK, France, Germany and USA, the company’s land bank is in excess of 300 acres.

IM Properties is well known for its consistent deliverability and the quality of its developments. This deliverability is reinforced by the fact that all developments are financed from existing cash resources.