Colliers International Indonesia has been appointed to dispose a factory located in Bekasi, West Java. The property was owned by European company and utilised as a garment factory where their products were then exported to Europe.
The back side of the property is on different land levels and has an irregular land shape. This factory size is 21,802 sq m and consists of three floors and a ceiling that is not quite high; thus its usage is suitable only for certain prospective buyers.
The property is not within an industrial estate. It is located on the main road of Jalan Raya Narogong, with a narrow entrance for in and out access, as it is also close to many residential areas.
As it is in a bonded area, it will also take some time for them to remove the bonded status, and the owner needs one year to vacate the premises.
Since this premises has a land size of 32,903 sq m and its high land price makes this property a high-value investment especially in the future for prospective buyers, Colliers sees what could be a good opportunity from the factory despite all the challenges and limitations they have.
Colliers sees this used garment factory can be developed for many options such as cold storage, commercial use, even into a residential area. As a result, Colliers strategies are:
- Targeting end-users who need property to be used as cold storage or garment manufacturer, shoe manufacturer, surrounding neighbourhood or even for e-commerce, and;
- Propose sale and leaseback terms to potential buyers, so that they can match with the garment company timeline.
During the process of finding the right potential buyers, Colliers was able to find a prospective buyer at that time who was looking for a property that they could develop not only as a factory but they also wanted a location that was still close to the city. Colliers saw good potential from this prospective buyer as their enquiry matched with the owner's asset and we recommended this premises as their best of choice.
After few negotiations with the prospective buyer, our Industrial & Logistics experts, Rivan Munansa with Fan Freddy Hidayat, managed to close the transaction based on the desired sale price during the pandemic situation in Q2 2020, with a local staple food distributor company with a very attractive rental terms and payment terms that have been successfully customised to benefit both the buyer and seller.
For more information on Colliers International Indonesia Industrial & Logistics Services or to buy or list a property as part of our next portfolio, please contact our experts here.