The Challenges
Currently, Nestlé Indonesia operates several facilities in locations including Panjang (Lampung), Cikupa (Banten), Kejayan (East Java) and also Karawang. Due to the increasing demand for one of their products in Indonesia, Nestlé Indonesia decided to build a new production facility.To find the best location and visibility to access many possibilities, Nestlé Indonesia asked Colliers to help them. There were a few challenges that our experts faced in this project, such as:
• Following the business strategy, this production facility needed to be located in Central Java.
• Due to the precisely determined area, Colliers took considerable effort to find a suitable location because, in Central Java, there is limited land to be used in the market.
• Most industrial estates located in Central Java are quite close to the coast, and this was in stark contrast to Nestlé Indonesia’s request, which required close proximity to their source at the specified farm.
• Minimal industrial estate with good-quality water supply (food grade standard) available on the market.
• Nestlé Indonesia was concerned about the time frame because they had to ensure everything was according to their prepared timeline. Therefore, Colliers was expected to be able to close the deal in a short time frame.
• The travel restrictions due to the COVID-19 pandemic became a challenge as the Colliers team had difficulties doing site visits.
The Strategy
We didn't see all the challenges above as a constraint; we saw them as an opportunity to maximise our networking with various parties to fulfil our clients' expectations. Therefore, the strategies that our experts adopted were:
• Colliers has good relationships with many developers, both companies and individuals; our experts utilised maximum networking skills to gain as much information as possible about available land throughout Central Java.
• With the knowledge that Colliers has, our experts provided detailed and precise data regarding the ideal site specifications for the new facility to Nestlé Indonesia and transparent financial calculations regarding potential locations.
• Colliers acted as a bridge between Nestlé Indonesia and the developer to reach agreement on price negotiations desired by both parties.
• It was essential for Nestlé Indonesia and the related developer to constantly be updated with the latest developments; therefore, Colliers intensively communicated, providing information and reports on various changes that occurred.
The Result
After implementing all of the above strategies and successfully collaborating with the various parties, Colliers was finally able to find the ideal 198,000 sq m of industrial land that met Nestlé Indonesia’s requirements. Colliers also managed to close the transaction within the time frame that Nestlé Indonesia planned, and successfully assisted them in getting an excellent land price for this land requirement.
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