Sale of two sites for Honda Motor Europe Limited

The starting point

In May 2013, Honda Motor Europe Limited decided to outsource part of their logistics activities and part with their two buildings located in the industrial area ZIMEYSA (GE). SPG Intercity Geneva SA needed to sell at the best price and in a specific time frame given by the client (6 months) all the while managing at best the risk of the pre-emption right hovering over these freehold sites, strategic for the State of Geneva, all land located in these zones (ZDIA) are subject to a pre-emptive right from the state of Geneva, that can, after a period of 60 days after the signing date, claim itself as owner and buyer at a price determined by the state.

The solution

SPG Intercity launched a call for tenders with two rounds to search for investors and negotiate the best conditions, in parallel, commercialising the surfaces (rental) in order to avoid the risk of speculation. As the time available was limited, the technicality of the operation lay in the synchronisation of efforts and close coordination of our teams.

The result

Finally, the rue des Moulières’ site consisting of 13‘000 sqm of storage area and workshops connected to rail way lines was sold on 3rd April 2014 to the Caisse de Prévoyance de la Construction (CPC), who won the call for tenders. By presenting tenants and prospects for over 80% of the surfaces, SPG Intercity managed to reach an optimal sale price. The rent levels suggested, perfectly in line with what companies can offer, reassured (i) the investors about the liquidity of the surfaces and (ii) the state of Geneva by dismissing any speculation.

These surfaces will be rented out to companies affiliated to the pension fund and will respond to the problem of shortage of surfaces and craft workshops that is currently affecting Geneva’s market.

Meanwhile, rue de la Bergère’s site, was subject to a division, to enable on one part the sale to the Fondation des Terrains Industriels (FTI) of a logistics warehouse of 5‘000 sqm and part of the land of 15‘000 sqm of which the state will freely be able to develop in order to meet the zone’s densification, and secondly by Honda Motor Europe Limited keeping their administrative building, a workshop, car body shop and a car park necessary for continuing their activities.

By openly integrating the FTI into the sale process, we were able to ensure that the sale price corresponds to the market price offered by private actors. SPG Intercity Geneva SA managed the work related to reconfiguring the headquarters’ offices on rue de la Bergère. This efficient use of space and « space planning » allowed all employees to work under one roof to optimize costs.