Thyssenkrupp - Office renewal & expansion

Sun City_Thyssenkrupp by Cushman & Wakefield
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The Challenge

ThyssenKrupp AG is a German multinational conglomerate corporation based in Duisburg and Essen, Germany. The corporation consists of 670 companies worldwide. ThyssenKrupp AG Hanoi Office is located at Sun City Building, Hanoi CBD.  Along with Polysius – TKAG’s subsidiary company, they are one of the anchor tenants at Sun City Building occupying nearly 1,000 sqm of grade A office space.

Considering the growth of both companies for the next 05 years, in 2014, TKAG has appointed Cushman & Wakefield -Tenant Advisory Group as their Exclusive Tenant Representative to conduct a full analysis of relocation vs. renewal in the most cost efficient manner.

The Solution

Based upon the requirements of TKAG, Cushman & Wakefield composed an option list for them in terms of budget, good management and location. 2 new high-quality office buildings were shortlisted to be put into consideration with current building.

Due to TKAG’s management board based in Germany and their limited information access to make a judgment call, Cushman & Wakefield has not only to support TKAG to build a market forecast but also run a financial analysis model on each buildings for each scenario.

The Results

After more than 6 months of working on TKAG project, Cushman & Wakefield were successful in TKAG’s lease renewal at Sun City Building with a net saving of approx. US$500,000 over the term of the lease and flexibility to extend lease when needed.

Besides, Cushman & Wakefield also helped TKAG to get more rent free period and good terms for their 400sqm of expansion at the same building.