DLA Piper advises LEGO Group in its US$1 billion-plan to build its first factory in the US

DLA Piper advised global toy manufacturer the LEGO Group in its plans to invest over US$1 billion to build a factory in Chesterfield County, approximately 20 miles south of Richmond, Virginia — and the first in the US. The factory, which is expected to open in 2025, will employ 1,760 people and span 1.7 million square foot.

Construction will begin in the fall of 2022 and the factory will feature carbon-neutral designs. The site will minimize the use of non-renewable resources and energy consumption. An onsite solar park will generate renewable energy to match the factory's daily energy needs.

This factory will be the LEGO Group's second factory in the Americas and seventh in the world. The Richmond factory will use state-of-the-art technology to mold, process and pack its products similar to the global toy manufacturer's factories worldwide.

DLA Piper advised the LEGO Group in the site selection process and provided support for the negotiation of the purchase and sale and lease agreements, in addition to incentive agreements with the Commonwealth, the County, and state and local development authorities.

“Congratulations to the LEGO Group on the expansion of its manufacturing capabilities in the US and for the hundreds of jobs they intend to create in the region,” said Robert J. Gruendel, chair of DLA Piper's US Project Finance Practice who led the team that advised the LEGO Group. “It was a pleasure working with the LEGO Group and bringing together our deep knowledge in real estate to support the company's long-term growth.”

In addition to Gruendel (New York), the deal team included partners Richard Klawiter and Kim Pearlman and associate Ben Quarless (all of Chicago).

With approximately 200 real estate lawyers in the US and 500 globally, DLA Piper's market-leading Real Estate practice offers a full range of real estate services, including acquisitions and sales, single asset, programmatic and operating company joint ventures, real estate fund formation, public and private REITs, financing, zoning and development, construction and design, leasing and restructuring and workouts. The firm executes hundreds of transactions every year, ranging from billon-dollar-plus transactions to the acquisition, financing, joint venture formation, leasing and sale of individual properties.