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Case Study

New head office for Kellogg’s South Africa

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Kellogg's occupied a 17 year old building with dated infrastructure. JLL was appointed to assess the property in relation to other market opportunities and advise on the findings.
Customised solution

In order to ensure that there was sufficient time to undertake thorough market research and obtain approval from Kellogg’s global CRES, JLL renegotiated the Kellogg's lease on a short term basis to provide as much flexibility as possible.

Supporting the Kellogg's CRES team from both a commercial and legal aspect, we presented a number of viable market opportunities for review. This allowed Kellogg’s to make a well-informed decision on the location of their new head office, with the favourable terms we negotiated, showing long-term savings.

We also introduced the client to Tétris for final office design and to develop a workplace strategy, important factors for Kellogg's, which was looking to create efficiencies in their new workplace and to align their South Africa operation with global workplace standards.

Results

By implementing an efficient workplace strategy, we assisted Kellogg's in reducing their overall occupation costs by 30%, largely as a result of a smaller footprint. In addition, other general occupation costs were reduced through the new building infrastructure.

This was achieved via JLL’s negotiations with the landlord.

 

“I want to recognise JLL’s knowledge and understanding of the local real market, as well as your negotiation skills, and your ability to navigate through our corporate approval process.”

Roger Nesti, Director International Real Estate, Kellogg Company

Client Profile

Industry: FMCG
Geography: Woodmead, Johannesburg
Space: 1,128m2
Length of relationship: 3 years
Year completed: 2015
Services provided: Tenant Representation, Lease Advisory, Design & Build​​​

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