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San Jose, CA

State Grid

Kidder Mathews made tremendous efforts to familiarize the company with the acquisition process, the market conditions, and how to capitalize on them.

Posted In — Success Stories |
95,550
sq ft building

Project Outline

China State Grid is the largest electric utility in the world and ranks 2nd on Fortune Global 500 in 2016. It constructs and operates power grids to provide power supply. The company came to the U. S. about two year ago to establish a Global Energy Interconnection Research Institute and sought Kidder Mathew’s advise on their office lease. As the company grew, it became apparent that they required a more permanent space. Initially, they wanted to lease a new space, but through a strategic evaluation exercise with the Kidder Mathews team, State Grid made the determination that buying a building made more sound financial sense and gave them the control that they preferred to have over the renovations and upgrades to the building, and allowed for better security.

Since this was State Grid’s first property acquisition in the U. S., Kidder Mathews made tremendous efforts to familiarize the company with the acquisition process, the market conditions, and how to capitalize on them. Kidder Mathews China Services team selected numerous properties for the company and compiled comprehensive advisory reports.

State Grid ultimately chose a 95,550 sq ft building at 250 West Tasman Drive in North San Jose, one of an eight-building campus formerly owned by Cisco Corporation. The building was extensively renovated and now offers covered patios and balconies, new entry features, a 900 sq ft café, LED lighting and a new signage program. It also has a less expensive source of energy. The area has abundant amenities including Levi’s Stadium, the home of the San Francisco 49ers, as well as a major light rail stop and the North First Street retail center for easy access.

Results

The deal process was longer than usual as State Grid is a large state-owned company
and the decisions needed to be made at various layers of meetings at the headquarters in China and be reported to and approved by the government. Also multiple leadership groups needed to visit of the property and approve the acquisition. Kidder Mathews China Services team accommodated all these and rendered timely help whenever needed. Kidder Mathews also introduced necessary professionals to State Grid to better facilitate the deal process, including attorneys, due diligence experts, accounting firms, and insurance companies.

The deal closed on time and on budget. Besides being the buyer’s representative in the acquisition, Kidder Mathews also won property management and leasing assignments for the project. State Grid will only use part of the property and Kidder Mathews is assisting the company to lease the balance of the vacant space.

Services Provided

  • Facility needs analysis
  • Site selection analysis
  • Financial analysis
  • Acquisition negotiation and due diligence
  • Property management
  • Lease negotiation

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