Introduction
ABB is a leading global technology company that energizes the transformation of society and industry to achieve a more productive, sustainable future. By connecting software to its electrification, robotics, automation and motion portfolio, ABB pushes the boundaries of technology to drive performance to new levels.
ABB was established in Indonesia in the 1980s. Starting with one office in Jakarta, ABB has grown to several offices, factories, workshops, and service centres, ensuring a prominent nationwide presence.
Due to the positive business growth, their current space had become too tight, and at the same time the lease on one of its workshops was due to expire, therefore, ABB appointed Colliers Indonesia Industrial and Logistics Services team to find a new workshop to lease.
Challenges
The workshop that ABB leased was no longer fit for purpose, and they had several requirements for a new workshop. In finding the most suitable workshop, ABB and Colliers faced several challenges, such as:
- Limited ready-to-use workshops in the market
- The facility should be located not far from Jakarta
- Workshop specifications must be in accordance with ABB's requirements
- The project was handled during the COVID-19 pandemic, which limited our ability to travel and assess available options
- The new workshop needed to be operational before the previous workshop lease period ended
- System approval and budget submission took time due to ABB's Head Office being located outside Indonesia
Strategies
As a consultant for ABB, Colliers came up with several strategies to overcome these challenges:
- Having good relationships and networks, Colliers was able to find locations that met ABB's requirements
- Due to the time constraints, as well as limited workshops with specifications that met ABB's requirements, Colliers proposed a Build-to-Suit solution, so that ABB would get a workshop that really met their standards
- To make performance more efficient and effective, Colliers formed a discussion group that oversaw the development project
- To speed up the approval process, Colliers provided all the information related to the Build-to-Suit (BTS) project to support them in submitting the new budget
Result
Although the project was executed in the midst of the Covid-19 pandemic, Colliers Indonesia used its experience and networks to find a developer that had suitable land and was willing to provide a Build-to-Suit workshop for ABB. Colliers was also able to secure a flat rental price for more than five years for ABB. In line with Colliers' value of ‘Be Collaborative’, good teamwork allowed us to collaborate and drive strategic solutions towards achieving the project goal.
Click here to learn more about industrial and logistics properties, standard factory buildings, or data centres including how you can accelerate your business success or contact Rivan Munansa, our Head of Industrial & Logistics Services for a discussion.
