Tui foto

Tui wanted to benchmark the rental portfolio of its front offices and, where necessary, optimize rental costs.

60 locations were benchmarked high level in a first phase. Based on the current rent paid and the timing in each agreement, an action plan was drawn up for around 40 contracts.

All locations involved were subsequently screened in detail from a spatial, technical, financial and contractual point of view.

  • The project was approached in detail spatially-technically. Freestone checked whether the rented surface was used optimally and correctly stated in the lease. The surface is 'weighed' based on the first daylight zone, floor, useful space, which is reflected in the price. Freestone also checked whether any technical defects of the property should be raised with the owner.
  • rom a financial point of view, the average market rent from the region was compared with the current rent paid. In order to perform this accurately, Freestone possesses a large database with more than 4000 reference points throughout Belgium.
  • Finally, on the basis of its analysis and benchmarking ('facts and figures'), Freestone entered into a contractual agreement with the owner to adjust the current conditions as much as possible in light of market conditions.
  • Review of contracts in terms of financial conditions and timing
  • Benchmarking
  • Analysis of the owner's profile (private, professional)
  • Analysis of the intrinsic characteristics of the office and its environment
  • Scope definition and prioritization
  • Contacting involved parties and planning negotiation structure
  • Contractual settlement
  • Reporting

PROJECT FILE

  • Customer: Tui
  • Project: optimisation rental agreements
  • Timing: 2015
  • Location: Belgium
  • Size: 40 contracts

Result

Freestone's intervention resulted in a saving of around 10% within the contracts covered, which resulted in an attractive recurring rental saving for Tui. Freestone handled every file in its entirety and was responsible for the commercial settlement, including the development of addenda or new lease contracts.