Convergys, the global leader in integrated billing and customer care services, selected the Global Development Solutions team to assist in the site selection and financing of a new 750,000+/- square-foot corporate headquarters in the Cincinnati area. The need for a new corporate campus, to include a state-of-the-art high-tech contact center, data center and corporate offices, was driven by the consolidation and relocation of six locations throughout the area.

The team evaluated more than 80 sites, and shortlisted 20 potential sites in Ohio and Kentucky. Extensive due diligence was preformed relative to permitting, regulatory requirements, and potential corporate tax incentives. Additionally, the team:

• Developed comprehensive project cost analyses and schedules for the short-listed sites
• Examined a full array of available financing structures, including ownership, conventional mortgage financing, credit tenant lease financing, synthetic lease financing and joint venture financing based upon Convergys' credit condition
• Assisted a third party consulting firm in analyzing tax incentive programs proposed by state and local municipalities
• Conducted sensitivity analyses evaluating the impact of each location, tax incentive package and available financing structures on corporate cash flow, earnings and balance sheets
• Developed a web-enabled database that provided Convergys with immediate access to site descriptions, market analysis, photography, maps, and zoning information for all sites
• Conducted meetings and negotiations with public officials on various site, infrastructure and economic development issues

As a result of our efforts, Convergys ultimately acquired a building adjacent to its headquarters in the Cincinnati CBD for redevelopment and occupancy. Financing was achieved via unsecured corporate debt and the company was able to save over $100 million in operating expenses over the next 10 years.

For more information on this project, please contact Karen McShea.