Optimising cost reduction, delivering the best future estate - Provision of Property Services to the Government Property Unit Mini-Competition ...
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Provision of Property Services to the Government Property Unit Mini-Competition Response 12 August 2011 Optimising cost reduction, delivering the best future estate
London & Bristol Property Vehicle Pilot 10 January 2011
Mr P Mayes
Government Property Unit
Department for Business, Innovation & Skills
1 Victoria Street
London
SW1H 0ET.
by e-mail: Paul.Mayes@ogc.gsi.gov.uk
London, 12th August 2011
Dear Paul,
Provision of Property Services to the Government Property Unit
Thank you for your brief. I am pleased to say that we can offer in response a service which plays to
some of our particular strengths.
We have assembled dedicated regional account teams to give you the advice and market presence you
need to help transform the government estate. We are using senior skilled professionals to identify,
create, and seize early and sustainable savings and value opportunities, and to give you the strategic
insight required to deliver the right future estate for efficient government operations.
You need best in class advice in each region. We provide this via full service offices including those
in each of your priority cities. Because these are run along national service lines, not by geography,
best practice, skilled resource, and market information are shared between them, to your advantage in
both sharper advice and implementation.
We capture in our team the insights form our current instructions with you, and offer fifteen specific
efficiencies which will help us quickly mobilise and give you rapid, effective and consistent advice.
Our culture is built on teamwork and collaboration which we are convinced delivers you the best
results, and will be essential on a multidisciplinary task such as this.
This proposal shows that we have the market strength to be appointed in each of your five regions,
and the strategic capacity to serve you efficiently and effectively throughout.
I hope this document provides all the information you require; please do not hesitate to contact me in
the first instance for any additional details.
Yours sincerely,
Paul Spencer
Jones Lang LaSalle
paul.spencer@eu.jll.com
Office agency team of the year 2011 Investment agency team of the year 2011
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Contents
Executive Summary.......................................................................................................................................................... 4
Section A: Qualities and resources
1 Question 1: our understanding of the brief....................................................................................................... 6
1.1 (i) support the GPU in the categorisation of the Regional Estates as CORE or SURPLUS .................................. 6
1.2 (ii) space utilisation and planning assessments to show current and achievable capacity for all CORE
holdings and how this could be delivered. .......................................................................................................................... 7
1.3 (iii) advice on options for accelerated lease exits for all SURPLUS holdings, and feasible scenarios for
estate rationalisation moves and chains of moves.............................................................................................................. 7
1.4 (iv) agency advice on mitigating the cost of, or disposing of, surplus property including mitigation of
dilapidations liabilities;......................................................................................................................................................... 8
1.5 (v) town planning advice on major refurbishments, listing issues, disposal potential, and re‐development
opportunities; ...................................................................................................................................................................... 8
1.6 (vi) valuation and appraisal advice as necessary including site specific development opportunities;.................... 9
1.7 (vii) support for the GPU in producing a robust plan and Business Case for consolidating the estate; ................. 9
1.8 (viii) supporting implementation via agency roles for acquisition/disposal, refurbishment, or other inputs
as necessary..................................................................................................................................................................... 10
1.9 (ix) other property advice as specified from time to time by GPU........................................................................ 10
2 Know-How and Credentials .............................................................................................................................. 11
2.1 Credentials and know how region by region........................................................................................................ 13
3 Project Timeline................................................................................................................................................. 34
Section B – Personnel
4 Personnel ........................................................................................................................................................... 37
4.1 Structure.............................................................................................................................................................. 37
4.2 Project Team ....................................................................................................................................................... 37
4.3 Regional Project Teams ...................................................................................................................................... 40
5 Main Points of Contact...................................................................................................................................... 58
6 Organogram ....................................................................................................................................................... 59
6.1 Team Structure.................................................................................................................................................... 60
6.2 Team Levels of Seniority ..................................................................................................................................... 61
7 Allocation of Tasks............................................................................................................................................ 62
Section C – Charging
8 Hourly Charging Rates...................................................................................................................................... 64
8.1 Expenses and VAT.............................................................................................................................................. 64
8.2 Fee Rate Schedule.............................................................................................................................................. 64
8.3 Capital Sales and Acquisitions – Agency Fees ................................................................................................... 64
8.4 Leasing – Agency Fees ....................................................................................................................................... 65
8.5 Site Specific Studies............................................................................................................................................ 65
8.6 Pricing for projects............................................................................................................................................... 65
8.7 Accounting arrangements.................................................................................................................................... 65
9 Additional Volume Based Percentage Discounts........................................................................................... 66
10 Pricing by outputs / project requirements ...................................................................................................... 67
Appendix A: Conflicts of Interest
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“… a very fine service, everything I ever wanted has been provided”
Deutsche Bank – John McGiver
“... a massive thanks for the refurb. It has transformed the place - not just physically, but helped lift the
atmosphere and strengthen all the engagement and cultural work Kevin has been leading. You can
literally hear the difference.
I never thought the word "funky" would be used in the same sentence as Hattersley - but it can be now.
Operationally, the work was also done with minimal disruption, which at a time of huge operational
change is also great credit to you and the contractors”
British Gas – Ian Peters
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Executive Summary
You require locally based, market sharp advice and action to help you transform the government estate
in each region. The outputs you seek are accelerated and optimised cost reductions and receipts, and
the right future estate for government business.
Our response serves you via our full range of national service lines, delivered through our office network
located in each of your priority cities. We use dedicated regional account teams skilled in all the
disciplines you need but able to lever best practice from elsewhere in the firm as required.
We show in responding to question 1 that we understand your requirements. Our input must identify
opportunities, help make change happen, inform analysis and decisions, and help secure approvals.
Rolling out the London and Bristol pilots, on which we have advised you, is not the only task, we must
also support delivery of other projects to consolidate the wider government estate.
Your ideal team combines the best advisors from each region. We set out in our response to question 2
the evidence that we meet this criterion region by region. We are bidding to be appointed in all five
regions. If appointed to multiple regions will use a central team to ensure consistency and avoid
multiplying regional account management functions.
To optimise savings in this SR period you need quick mobilisation and rapid impact in changing the
estate. We describe specific efficiencies we can provide to accelerate change, levering benefit from our
previous roles helping lead the regional network, and advising on the Bristol and London pilots.
We know from these roles the importance of sensitive management of departmental relationships, and
of confidential and secure data.
Your timescale for the initial tasks on the priority cities is tight, but by working closely with you and the
occupying departments we are comfortable we can meet it. Our previous experience will help us make
an accelerated start. But we also rely on successfully growing new working relationships based on trust
and openness, which we believe our existing roles have shown we can achieve.
Our dedicated regional account teams provide a single point of contact and the market knowledge you
need. Because we are organised by national service lines, not geography, we can readily bring in
specialist expertise (for example in complex asset disposals) when required. We are using senior
professionals with the market knowledge and commercial experience to quickly get to the answer with
both practical and strategic advice.
Our pricing structure offers discounts from the standard HCA rates, further discounts for quantum in
each region, and for those regions outside London & the South East.
Our response is arranged to address your questions in number order. An annex comments on conflicts,
where we see no unmanageable issues.
We have enjoyed working closely with you on both the GPU Regional Delivery Network, and in London
and Bristol. We would be delighted to have this opportunity to continue to help you to deliver real change
in the government estate.
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Section A: Qualities and resources
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1 Question 1: our understanding of the brief
Question 1 - Demonstrate an understanding of what it is that BIS requires, separately addressing
each of the outputs / project requirements in section 5.
We separately address each of the project requirements from 1.1 below. More generally we understand
the following:
• Government is seeking to reduce property costs by £5bn pa by 2021, c.£1bn of which is to come
from the central civil estate. Active intervention is needed to radically transform the way space is
occupied, owned and managed, whilst aggressively consolidating the estate.
• Pace is essential to deliver savings in this SR period, so early wins are needed. But this is also a
strategic opportunity to deliver the right future estate for government; one which is sustainable in
every sense, and which supports and enables more efficient ways of working.
• Whilst National Property Controls drive departmental behaviour, you work in a non- mandated
environment . A co-ordinated approach is needed which gives the strategic direction to help
departments to share space in an agreed core estate, and efficiently exit from the surplus, exiting
early where a business case can be made to do so.
• The London and Bristol property pathfinders demonstrated ways of doing this. GPU is now rolling
out to the regions this more strategic approach to the management of the estate, with a particular
focus on the major metropolitan areas.
• The pathfinders are focussed on the central civil office estate, where you need to confirm the right
core estate, migration plan, and exit strategies, with attendant exit and entry costs (e.g.
refurbishment and dilapidations) and risk (e.g. to value or timing of receipts).
• But savings are sought across the whole estate including defence and health for example. Each
estate requires practical, commercial, and deliverable strategies and specific projects to be identified,
assessed, approved and implemented.
• You must also work hard to show departmental “winners” and “losers”, ERG and HMT that any
solutions identified optimise Exchequer benefit, and are fundable at acceptable levels of cost and
risk which we are to help you quantify. Assessing risk around exit from offices in flat regional city
markets, or around disposal of sites with development potential is critical, and challenging when the
scale of your own programme risks flooding the market.
You therefore need market sharp advice supported by best in class implementation which generates and
seizes market opportunities . You need this in the priority cities but also where other opportunities arise
or are identified. Your advisers must tread sensitively around your relationships with the occupying
departments and be live to sensitivities including security and commercial confidentiality.
We are confident we can meet these requirements. You wish to select the “A team” of advisers in each
region. We firmly believe we have the credentials to be part of that team in all five regions. We set out
below the evidence to support our claim.
1.1 (i) support the GPU in the categorisation of the Regional Estates as CORE or SURPLUS
Strategies are emerging for each of the major metropolitan areas, including initial identification of the
core and non-core estate. Guiding principles help, together with the traffic light system we evolved
(location, cost, fitness for purpose, tenure) which the network is using. Core is generally freehold or
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longer leasehold, long term committed PFIs, larger more flexible and cheaper more sustainable
buildings. But the need to maintain some presence in key locations requires compromises because of
the character of the existing estate (acquisitions being allowed only exceptionally at present). Moves are
expensive and to be kept to a minimum avoiding double shifts to “swing” space.
We will
• Use our market knowledge of occupier and investor demand, landlord situations and aspirations,
adjoining development or other potential to highlight possible opportunities to adjust the core by, for
example, creating and seizing scope for early exits or re-gearing with landlords;
• Advise on keeping a mix of space suitable for different functions in the core, and with different
locations;
• Help you balance strategy around keeping cheap suboptimal space which is difficult to market but
may also be difficult to occupy efficiently and have a limited sustainability performance;
• Help GPU regional staff assess and interpret the data. We will re-apply the useful “terrier” we
devised for London and Bristol which automatically populates from EPIMS but also allows for agents
views to be shared.
1.2 (ii) space utilisation and planning assessments to show current and achievable capacity for all
CORE holdings and how this could be delivered.
You need to know the capacity of the core estate in order to show the extent to which the estate can be
consolidated into it by sharing occupations, and making accelerated exits from the non- core.
We will
• Assess realistic capacity taking into account factors such as floor-plate configuration and loading,
M&E and HVAC capacity, means of escape in case of fire, toilet and other staff facility provision,
access and entry arrangements.
• This will entail site visits and collaboration with occupying departments to access their building
knowledge, working with you to make the approaches.
• Scope will be adjusted as appropriate to give the degree of comfort required. Experience from
London and Bristol was that a rapid high level assessment was needed to cover the whole core, with
more detail on key buildings as needed.
• Senior staff input will be used to give rapid advice with confidence.
1.3 (iii) advice on options for accelerated lease exits for all SURPLUS holdings, and feasible
scenarios for estate rationalisation moves and chains of moves.
Simply exiting space when leases expire as required by NPC’s does not deliver the pace or quantum of
savings needed to reach your targets. Some buildings need to be left before lease expiry and the
residual liability aggressively reduced through re-letting, assignment, surrender, or a leasehold liability
package. You need to know, the risks, values, costs and timing involved, and how they can be fitted
together into an implementation plan.
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We will
• Identify where and how landlord or portfolio deals could be achieved and at what price;
• Advise on lease restructuring, collaborative re-marketing with landlords, surrender potential, scope
for leasehold liability packages;
• Provide market based assessment of re-letting values, estimated marketing voids and incentives,
refurbishment or other works needed to improve marketability and their costs;
• Advise on local market capacity to absorb space and ways of phasing release;
• Work with you to plan timed series of moves which can be used to fill the core estate from the non-
core, developing and testing with you alternative “straw man” scenarios as necessary.
1.4 (iv) agency advice on mitigating the cost of, or disposing of, surplus property including
mitigation of dilapidations liabilities;
We will advise on the following, provide value and cost assumptions as necessary and recommend
adjustments to core / non core as appropriate:
• how to optimise market potential of surplus space by optimising lease lengths, engaging in
refurbishment works;
• letting strategy e.g. in whole or in part, and the works needed to implement our recommendation;
• market capacity and optimum timing of release to avoid risk of flooding the market;
• mitigation of empty rates;
• scope for temporary or community uses and the risks involved;
• dilapidations strategy e.g. when to conclude them, estimate liability and negotiating tactics and
strategy;
• early wins e.g. where we are aware of existing demand for which government space is suitable.
1.5 (v) town planning advice on major refurbishments, listing issues, disposal potential, and
re‐development opportunities;
We will advise and adjust as necessary where exit or other assumptions are affected by planning risk,
recommending (and implementing if required) the optimum planning strategy. Advice will cover
• Context- relevant local and national planning policy, the strategic direction of the local authority,
recent relevant decisions;
• Initial views on likely acceptable uses;
• Strategy- the right approach to achieve planning certainty, how much to invest prior to exit;
• Estimated costs- including not just application fees but supporting evidence as necessary;
• Any additional advice required such as design, heritage, rights to light, traffic and environmental
impact;
• Time- required for planning certainty to be secured and how other actions can be programmed in
parallel or in sequence;
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• Risk – a realistic assessment of the risk of failing to achieve the treatment required, and strategies or
alternative approaches for mitigation;
• Value- the extent of the benefit to be achieved by securing the desired planning treatment.
1.6 (vi) valuation and appraisal advice as necessary including site specific development
opportunities;
You need to know how to optimise value on disposal for long leasehold and freehold assets particularly
where these have development or alternative use potential (such as MOD sites identified for disposal).
The input required will vary according to the scale and complexity of the asset in question which might
range from a single court building to a large military complex for example. As an indicative outline we
can provide a range of advice and implementation including:
• The right development concept and mix of uses to optimise value;
• Disposal strategy including joint venture and portfolio options, partnership vehicle solutions, auction
and private treaty disposals;
• Approaches to planning risk and the time in the planning process at which to engage with the
market;
• Valuation implications of the above, target values for disposal and phasing and structure of cash
receipts contractual arrangements.
We are active across the full range of property sectors including leisure and retail, hotel, residential
(including affordable and social housing), industrial office and other commercial uses so can provide
quality advice on market potential for all of these.
Our dedicated national development consulting team which is a market leader in bringing forward for
development more complex large scale and mixed use sites for both public and private sector will work
with the regional teams on more complex or large scale projects. .
1.7 (vii) support for the GPU in producing a robust plan and Business Case for consolidating the
estate;
When seeking ERG and HMT approvals, and demonstrating fundable solutions to departments you
need to be able to assert with confidence that the implementation plan for consolidating the estate is
practicable and commercially deliverable, and based on robust up to date market input.
We will
• Ensure our outputs are matched to the inputs you need for financial modelling and business cases;
• Input to sensitivity analysis reflecting our appreciation of market risk;
• Help you frame deliverable series of moves, testing which performs best and why;
• Give advice on structures and roles for engaging private sector partners and implement as
necessary.
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1.8 (viii) supporting implementation via agency roles for acquisition/disposal, refurbishment, or
other inputs as necessary
We will lever our market leading agency position to help you exit liabilities and assets with optimum
benefit and in the time frame you require including:
• Advice on optimum disposal routes, timing, marketing strategy;
• Leasehold disposal- assignment, sub- let;
• Freehold sales;
• Portfolio transactions- including leasehold liability packages;
• Landlord deals- surrenders, lease re-gears, using our close knowledge of landlord aspirations and
situations;
• Preparing assets for market by advising on and helping deliver any works required;
• Marketing, negotiating and concluding transactions where required.
1.9 (ix) other property advice as specified from time to time by GPU.
Jones Lang La Salle can provide a full range of market facing advice and implementation services as
you require. In particular we have:
• A specialist health estate team;
• Dedicated development and complex asset disposal team well placed to advice on MOD sites
targeted for disposal;
• Dedicated team structuring private –public partnerships;
• Market research regularly updated on key regional office markets;
• Workspace transformation advice;
• Sustainability advisory team.
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2 Know-How and Credentials
Question 2 - Demonstrate relevant know-how and credentials in the locations specified in 5(b)
for the outputs / project requirements and confidence that they can be satisfied, including any
advice and/or comments on how best to ensure efficiency in delivery of these.
You need best in class market facing advice in each region, and we have the market presence, service
quality, and skilled personnel to deliver this.
We set out below our response region by region. First we set out some specific efficiencies which our
approach offers.
• Geographic coverage: Our regional account teams are located where you are. We have full
service offices in every one of your priority locations, as well as others with a large civil estate such
as Exeter, Plymouth, and Southampton. The approach used in the five central London postcodes
may be rolled out across London where we have specialist teams in each of the key markets-
Canary Wharf, City, West End and Western Corridor.
Office Agency Experts in your
Key Metropolitan Areas
Glasgow Edinburgh
Newcastle
Leeds
Liverpool Manchester
Manchester Chris Mulcahy
Nottingham
Liverpool Chris Prescott Birmingham Norwich
Leeds Jeff Pearey
Newcastle Jonathan Sykes Bristol West London London – Canary Wharf
Cardiff Bath London – City
Birmingham Jonathan Fear / Jonathan Carmalt London – Heathrow
Southampton London – West End
Bristol Ian Wills / Jeremy Richards
Exeter
London Jonathan Evans / Chris Hiatt
Plymouth
• Resources: We are organised on national service lines not by geography. This means each regional
account team has access to best practice and expertise from across the country to sharpen their
advice. It also means extra capacity is available when workload peaks.
• Expertise: We have a national centre of expertise, for example in complex asset disposals highly
relevant to the defence estate, and a specialist health estate team. These are used to working
closely with regional teams hence combine unrivalled local market knowledge with best practice. .
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• Accelerated start: All regional teams will be fully briefed by colleagues working on London and
Bristol and by Rachael Howard and Paul Spencer who have been helping run the regional network.
This will help make a rapid start and fully capture the lessons from this recent involvement.
• Project management: For specific projects which emerge from this framework we will agree with
you a PID, project plan, budget and team to ensure the task is efficiently dealt with and monitored.
• Continuous improvement: Both regional and central account leads will meet regularly (we suggest
monthly initially then to be reviewed, bi-monthly may be best) with your regional and central teams to
review performance and progress, gather feedback, plan improvements and monitor their
implementation.
• Data: We will discuss and agree with you at the outset how best we can use and access the data
you are working on. We designed the dashboard and data set being used by the network and will
brief our regional teams on how to get best use from it immediately on appointment.
• Joint working: We propose to work closely alongside you including in your offices where
appropriate. The pace will be high, close engagement will be needed, and we want to be fully
integrated into your teams providing “real time” advice rather than periodic reports.
• Security: We will engage with you at the outset to secure any security clearances necessary to
facilitate working alongside you in your offices and to ease access to buildings for inspection.
• Departmental engagement: Your relationships to departments are key to success in the non
mandated environment and we will ensure that all contact with departments fits with your
departmental engagement strategy, that you are aware of it in advance and approve, and that you
are kept fully informed of the dialogue that takes place.
• Capacity building: Our work with you to date has shown our commitment to build GPU’s capacity
with significant improvements to EPIMS, devising the regional terrier approach, shaping the regional
network, data set, and tools and techniques used for analysis. We aim to continue such capacity
building in the current appointment.
• Knowledge of the estate and issues involved: Having been actively engaged in the creation of
both regional strategies and the regional network for more than 18 months we have a good working
knowledge of many of the key buildings in the estate, and of the issues around sharing space, lack of
a corporate landlord, challenge in funding up- front investment or double occupational costs.
• Communications: We will make full use of technology to aid knowledge transfer between us and
you, and across the our own team if appointed on more than one region, including a secure client
extranet if your security will allow it which will transform sharing data across both teams.
• Straw man / scenario planning: There is considerable uncertainty around the best options to
pursue to optimise savings but techniques which develop a straw man for further testing are the most
efficient and we are skilled n these.
• Outputs matched to your inputs: we will ensure we provide material which matches what you need
for financial modelling or business cases reducing the need for adaption or editing.
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The advantages of appointing Jones Lang LaSalle to all the regions
Consistency of approach, assumptions, tools and systems, presentation
Reduces the number of firms with whom departments must engage
Reduces the management load for GPU
Offers GPU a single lever to pull for quality control and any service delivery issues
All regions benefit equally from lessons we have learned to date managing the network on secondment
and working on London and Bristol;
Choice of advisers is still available if alternates are appointed in each region;
We would be happy to discuss with you any co-ordination role you would like us to take so that other
advisers also adopt consistent approaches;
Market information e.g. landlord situations and aspirations, and occupier demand will flow freely
across the regions rather than risk being blocked between competing practices.
2.1 Credentials and know how region by region
Before looking at each region we make the following points about our previous work with GPU, and also
about our ability to do the capacity study which we know is an immediate and critical task, which is also
relatively time intensive since it involves site visits to the core buildings and close departmental
engagement.
The capacity studies and other cost inputs required throughout the appointment will be provided by
regional staff who are part of our 200 strong Project & Development Services business. Per year this
team advises on
• Building Surveys - over 25 million sq ft
• Construction projects under management - over £6billion
• In the region of 1,000 dilapidations instructions, - over £50 million value
Having run the studies for the London and Bristol pilots we have a clear appreciation of how to complete
these quickly at the right level of scope and with appropriate interaction with the occupying departments.
Our experience of setting up and leading the Regional Delivery Network at GPU
Paul Spencer, together with Rachael Howard, have helped the Government Property Unit to set up its Regional
Delivery Network. Through this work they have detailed knowledge of:
• The Estates in each of the regions.
• The data available (from e-PIMS and benchmarking) and how to use it.
• How the Data Dashboard for use by the Regional Teams has been designed, and how this fits with the way of
working of each of the Teams.
• The evaluation criteria to initially sift the portfolio of property in a place, using the traffic light system which was
developed by Paul and Rachael through their work in 2010 on the Civil Service in the English Regions (CSER)
estates programme.
• How Government operates and how GPU engages with Departments at national, regional and local level.
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Our experience of the GPU pilots in London and Bristol estates
Our experience of the GPU pilots in London and Bristol estates, allows us to build on the lessons we have learnt.
Through this work we understand:
• The objectives of the GPU.
• The challenges in the process with departments.
• How we can add value and bring market solutions to accelerate disposals.
• The integrated linked department moves are more challenging than simple chains.
• We developed a terrier review process and high-level capacity planning tools.
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2.1.1 North West
In the North West Jones Lang La Salle has over 150 professional staff in Manchester and an active
Office Agency presence in Liverpool with both offices covering all the professional disciplines needed to
service this instruction.
Our market presence
• Central Manchester : 71 transactions in 2010, 51% market share
• South Manchester : 67 transactions in 2010, 25% market share
• Warrington : 30 transactions in 2010, 36% market share
• For the first half of 2011 our market share has been over 70%.
• Advising North West Development Agency and Liverpool Vision on the 450,000 sq ft office led
expansion of the Commercial District of Pall Mall
Our quality service
• EGi North West Deals Winner 2008, 2009, 2010, 2011
• EGi Most Active National Agents in Lancashire and Cumbria 2008, 2009, 2010
• Co-Star Most Active Agents by Acquisition 2008, 2009
Currently the Manchester office has 2,000,000 sq ft of space being marketed and 450,000 sq ft of
acquisition work ongoing.
2.1.1.1 Evidence of our relevant expertise
Market Advice, Exit Assumptions, Dilapidations
Network Rail, Manchester
As part of a strategic office review and consolidation, advice was provided on existing office accommodation in
Manchester versus a potential new consolidated office in a single location. We identified Square One at Manchester
Piccadilly adjacent to Piccadilly Railway Station as a preferred option. The ultimate result was full relocation of
numerous offices to a single 130,000 sq ft office fully refurbished to an agreed specification and linked to the Piccadilly
Station platform.
Insolvency Service Relocation, Manchester
We provided a high level feasibility study to advise on potential relocation within Manchester City Centre including
advice on costs of relocation and comparing this to remaining within the existing multi-site portfolio. Advice was
provided in relation to estimating the cost a new fit out, estimate of existing dilapidations claim and relocation. The
result was relocation from two main offices into a single floor office in a more modern building on attractive terms.
Berryman Lace Mawer
Berrymans required a property solution for their expanding base in Manchester city centre. An initial feasibility study
was undertaken and after undertaking initial exercises, a preferred option was identified that involved acquisition of the
building immediately next door (owned by their existing landlord). Work included agreeing the acquisition and
specification of this new space which required a full refurbishment including new M&E, regear of their existing lease to
be coterminous with the new lease and negotiation of refurbishment of the common parts of the existing building which
was undertaken by the landlord. Coordination of fit-out, space plans and coordinating the procurement team through
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this process which also monitored the landlord’s work to the buildings also formed part of the role. The result was a
single new office in much improved accommodation on conterminous re-geared and new leases which provided the
ideal property solution. The total of the office accommodation taken was 45,000 sq ft.
Capacity, Exit Costs (Dilapidations, Cost of Works), Entry Costs (Refurbishment)
HQ building at Thorpe Park and Data Centre in Wakefield
The Leeds based Project and Development Services team recently undertook a comprehensive space planning
exercise of an HQ building at Thorpe Park and Data Centre in Wakefield on behalf of Northern Foods Plc. This
exercise included a review of their working practices and re-design of the working environment, and we were
subsequently instructed to specify, tender and manage the works on site.
Projects in Leeds & Knowsley
The team has an extensive track record of dealing with dilapidations for both investor and occupational clients,
predominantly in the office and industrial sector. Recent successes acting on behalf of tenants include reducing a
landlord's claim on a Leeds city office from £520,000 to £150,000 and successfully negotiating a reduction of £330,000
on a £830,00 claim on an office in Knowsley.
Development Development: Appraisal, Planning
Bickershaw Colliery (North West)
Bickershaw South is a former Colliery Site which was transferred to the Northwest Development Agency from English
Partnerships (now Homes and Communities Agency) following the formation of the Regional Development Agencies in
1999. The site gained funding approval through the National Coalfields Programme in 1994 for future mixed use
development. An outline planning application for the site’s mixed use regeneration was approved in 2008. We were
appointed to provide commercial advice into the master plan for around 650 units, commenting on the optimum mix of
units and target market. Alongside this commercial analysis a series of development appraisals were completed to
determine the financial viability of the scheme. Following formulation of the masterplan, we were commissioned to
manage the developer procurement process. We have provided advice to the NWDA and HCA on land valuations and
development mix to maximise viability, steer the developer procurement process, and inform the gap funding
necessary to successfully deliver this key regeneration project. The developer procurement process is currently ‘on
hold’ pending stabilisation of market conditions.
Liverpool Magistrates Court
We were appointed by Terrace Hill to provide planning advice and support pursuant to an Invitation to Submit Final
Tender (IFST) by Her Majesty’s Court Service (“the Authority”). The Authority sought a developer to design, build
and/or remodel/refurbish and finance a new magistrates’ court in Liverpool, on a site to be provided by the developer.
A number of considerations were taken into account from the outset, including; improved permeability / linkage
between the civic / administrative / retail quarters and the waterfront, ease of access by public transport and onwards
by foot / cycle, easy and logical to find (adjacent to existing QEII Crown Court building), regeneration of a prominent
city centre site, Major contribution to Liverpool’s waterfront regeneration, stimulant to increased footfall, incidental
expenditure and investment in the surrounding area, most efficient re-use of a previously developed and under-used
site in the city centre, location to minimise the need for visitors to travel by car, suitably prominent site and striking
architecture befitting a public building of status. The project was however cancelled as part of the Comprehensive
Spending Review.
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Blackley Mere
We were instructed to prepare a comprehensive planning application for a development that will transform this large
derelict and under-utilised previously developed site for a high quality residential development. Part of the site is
occupied by industrial buildings and hard-standings referred to as the Bowker Bank Industrial Estate. The remainder
of the site is occupied by woodland, dense scrub and the raised reservoirs associated with the site’s former uses.
Proposals for the redevelopment of the site for housing (160 units), leisure (enhanced facilities for angling club), open
space, landscaping and enabling works. This is a challenging site with numerous environmental concerns relating to
the site’s former industrial use, proximity to the River Irk, the reservoirs and open space. A public Inquiry was held in
2010, but was subsequently dismissed by the inspector; A revised scheme is currently being prepared and should be
submitted during the course of 2011.
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2.1.2 Yorkshire & North East
Jones Lang LaSalle Yorkshire and North East has a total of 100 staff across the region.
Our market presence
• Leeds : 35% market share of all leasing transactions in the last twelve months
• Newcastle : 74 office leasing transactions totalling 500,000 sq ft, 30% market share
Our quality service
Over the past five years we have been ranked in the top five agents and have recently achieved the
following:
• Yorkshire Office Agents of the Year 2010
• Yorkshire Property Awards 2009
• Property Dealer of the Year, Yorkshire Business Insider 2008 Agent of the Year
Recent mandates in this area include Mapeley, Royal Bank of Scotland, West Yorkshire Police and
HBOS.
Many instructions involve a multi-disciplinary approach involving lease advice, project management,
development services and valuation.
We act on some of the largest and most prestigious commercial schemes in Yorkshire and the North
East including:
• No 1 Leeds : 122,000 sq ft
• 21 Queen Street : 38,000 sq ft
• West Riding House : 45,000 sq ft
as well as significant leasing instructions in Wellington Place and Thorpe Park.
• In the North East we advise:
• Quorum Business Park
• Baltic Place : 120,000 sq ft
• East Quays : 38,000 sq ft
2.1.2.1 Evidence of our expertise
Market Advice, Exit Assumptions, Dilapidations
Strategic Property Review, Leeds
As part of a strategic property review, Jones Lang LaSalle advised HBOS Plc on its property strategy for Leeds and
Halifax. Our Office Agency team advised on the existing office accommodation occupied by HBOS Plc in Leeds
against the potential to relocate to a new site within the city centre and occupy a smaller footrprint. A short list of
options was provided and discussions with Landlords entered into. Our advisory mandate was extended to include a
review of Call Centre locations in the North East, by providing tailored market advice on the likely disposal potential of
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existing occupations.
Hudson House in York
Jones Lang LaSalle advised Quintain Estates on the largest office letting in York for the last three years which
comprised the letting of 30,760 sq ft to Instant Managed Offices. Following refurbishment by Instant the space was
then occupied by Network Rail allowing them to relocate some of their workforce whilst refurbishment of their existing
premises, George Stephenson House next door was carried out.
Riverside West, Leeds
Jones Lang LaSalle completed a new letting of 10,750 sq ft at Riverside West, Leeds on behalf of the landlord, The
Bradbury Executive Trust. This deal involved the surrender of the headlease and a simultaneous re-grant of a new
lease to Liverpool Victoria Insurance. Detailed and sensitive negotiations between landlord, head tenant and new
tenant were vital to progress the deal.
Mapeley
Variety of surplus office disposal instructions across Yorkshire and Humberside – Jones Lang LaSalle are involved in a
significant number of leasing mandates on behalf of Mapeley across the region including premises in central Leeds,
Huddersfield, Harrogate and others. Mapeley continue to use the services of Jones Lang LaSalle for repeat
instructions as a reflection of the value they place on our advice and continued letting success.
Royal Bank of Scotland
Jeff Pearey was previously involved in leading the Disposals Strategy across the North of the UK including Scotland –
this involved managing a series of leasing agents on behalf of marketing the Bank’s surplus leasehold properties.
Huge strides were made in disposing of offices throughout Yorkshire and the North East, the area where Jeff was
predominantly responsible.
West Yorkshire Police
We were recently appointed by West Yorkshire Police to provide strategic advice ultimately leading to the disposal of
surplus Police Headquarters, Brotherton House in Leeds city centre. Jones Lang LaSalle won a competitive pitch to
secure this role which will then lead to the sale of a redundant police station in the city.
Capacity, Exit Costs (Dilapidations, Capacity, Exit Costs (Dilapidations, Cost of Works), Entry
Costs (Refurbishment)
Merseyside Police Authority
We provided advice to the Merseyside Police Authority in relation to a strategic Estate Management Plan. This
involved close liaison with the Merseyside Police Estate Management Department and high level inspections of a
variety of property types totalling over 1.1 million sq.ft within 54 buildings. The commission involved advising on stock
condition, space utilisation, existing space standards and future requirements; together with desktop reviews on
building maintenance and other running costs. Evaluations were undertaken using rankings and a rainbow ladder
scoring matrix. The outcome of assessments were include in a strategic Estate Management Plan with short, medium
and long term objectives which are being implemented in phases over a 15 year period. The overall exercise will drive
out savings and deliver an estate suitable for neighbourhood policing in 21st Century.
Tyco
The team have also recently been included as part of a wider Jones Lang LaSalle team that have supported Tyco in
relation to the alignment of their property requirements with the needs of their business, working closely with Agency
and Real Estate Advisory colleagues. Following completion of an initial property search, and a short listing of potential
alternatives, an option appraisal was undertaken including consideration of running costs, specification, energy
efficiency, and potential exit costs. Following the selection of a preferred property building surveying advice was
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provided prior to acquisition, fit out and relocation. The rationalisation/consolidation also involved working closely with
Agency colleagues on the disposal of the surplus property and the implementation of an exit strategy involving
negotiation of dilapidations and surrenders in order to minimise liabilities.
Development Development: Appraisal, Planning
Tower Works, Leeds
We were part of a design consortium led by Carlbro to prepare a development brief for the 2.8 acre Tower Works site
in Holbeck, Leeds, which contained three listed towers. Following the acquisition of Tower Works by Yorkshire
Forward, the Agency planned to redevelop the site as a flagship development as part of the wider vision for Holbeck
Urban Village. We provided market advice and development consultancy to Yorkshire Forward to ensure that the final
development brief was deliverable by the private sector. Following the issuing of the final development brief, we were
retained to oversee the procurement of a preferred private sector development partner. This entailed reviewing and
evaluating the commercial property market assumptions, financial viability, and overall deliverability of shortlisted
proposals. As an outcome of the work, a final report was produced which advised Yorkshire Forward on the
appointment, which led to Isis Developments being appointed as the preferred development partner.
Bradford & Bingley Headquarters, Bingley
We were appointed by Airedale Partnership to work alongside Arup and Beckwith Design Associates in the appraisal
of a range of options for the former Bradford & Bingley headquarters building in Bingley town centre. The scoping
study focused on the re-use/development of the site so that it can contribute to the regeneration of the town centre and
objectives of the Airedale Corridors Masterplan and strategy. We provided a baseline review of site constraints and
preliminary development options. The Study considered commerciality and potential sources of demand. The site was
sold and is to be developed as a supermarket, which was the recommendation of our report.
George Street, Bradford
Jones Lang LaSalle was appointed by Keyland Developments to prepare, submit and negotiate a planning application
for a mixed use scheme in the Centre of Bradford. The site measures approximately 1.21 ha. The scheme comprises
a mixed-use development including 400 residential units; 1900 sq.m. of A1, A2, A3 and A4 uses; 5500 sq.m. of B1
office use and a 120 bed hotel, with 350 parking spaces and public space. The application site being the former
Yorkshire Water offices and computer centre on Leeds Road. These operations have recently been relocated.
Resolution to Grant planning permission, subject to s.106 agreement (including a reduction of the Section 106
provisions based on an open-book Valuation to enhance the viability of the scheme). Retrospective planning
application for comprehensive infrastructure works has also been granted.
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2.1.3 Midlands
The Midlands office agency team based in Birmingham and Nottingham is the largest in the Midlands.
There are 160 staff in the Midlands business covering all aspects of commercial and residential advice.
Our market presence
In 2010 the team transacted:
• 26 lettings in central Birmingham representing an 18% market share.
• 117,332 sq ft of disposals in Nottingham representing a 44% market share.
• Over 650,000 sq ft office disposals and acquisitions.
Our quality service
• Insider Agent of the Year 2010 E Mids
• The team has one of the highest market shares in the region and consistently appears in the top four
of all of the CoStar rankings in their criteria including disposals, acquisitions, volume of instructions
and number of instructions.
The team was responsible for the largest office prelet in the regions in 2010 and is currently marketing
approx. 2 million sq ft of built stock in 119 instructions and has over 300,000 sq ft of Tenant Rep /
acquisition work ongoing.
Key recent highlights include:
• Acquiring 27,500 sq ft expansion space in central Birmingham for a significant bank
• Acquiring a new Midlands regional headquarter for Handelsbanken in central Birmingham
• Concluding the 56,000 sq ft acquisition for Highways Agency in central Birmingham
• Securing the regional office market’s largest prelet to E.ON of 105,000 sq ft
• Securing a 60,000 sq ft letting for Mapeley of the vacant Mowbray House, HMRC Campus
Nottingham to Browne Jacobson LLP
• Sale of 213,613 sq ft Loxley House, Nottingham for Capital One.
2.1.3.1 Evidence of our expertise
Market Advice, Exit Assumptions, Dilapidations
Pinsent Masons, Birmingham
Due to an impending lease event, Pinsent Masons appointed the Jones Lang LaSalle team to explore re-gear
discussions with their current landlord and in tandem identify relocation options (c.60,000 sq ft) delivering high grade
accommodation and increased occupational efficiencies, whilst delivering cost savings or at least a cost neutral
position. The clients lease was successfully re-geared to deliver greater efficiencies and flexibility of occupation.
Royal Mail, Coventry
Working with The Royal Mail in the delivery of their national property restructuring programme, Jones Lang LaSalle
developed and successfully executed a freehold disposal strategy for the 197,000 sq ft Coventry Mail Centre facility.
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Taking account of planning, political and regeneration sensitivities the team achieved a sale delivering an initial capital
receipt, and future value subject to future planning milestones. The transaction represents the largest commercial
transaction in Coventry for a number of years.
Pricewaterhouse Coopers
Pricewaterhouse Coopers appointed Jones Lang LaSalle to compose and deliver a disposal strategy to mitigate
property costs (16,304 sq ft office premises). The client was out of occupation but with six years lease exposure
remaining. The team successfully secured sub-lettings to a number of occupiers including afirm of solicitors and a
local college. This involved pursuing a planning change of use for a D1 consent to enable the sub-letting to be
concluded.
Highways Agency
Acting behalf of the Highways Agency Jones Lang LaSalle provided advice on the exit strategy of the clients existing
90,000 ft² premises, including enabling works to ensure the valid implementation of the lease break, and dilapidations
negotiations. The team searched the market and identified and secured new BREEAM ‘Excellent’ offices of 50,000 sq
ft at The Cube. This included extensive cost and cash flow comparisons being made during the search process.
Insolvency Service, Birmingham
The team provided strategic advice in respect of the exit strategy on the clients existing substandard 99,000 ft² office
building, achieving a subletting of part in the interim period in order, to mitigate outgoings. The project required a
search for new regional headquarter office premises, culminating in the acquisition of 42,000 ft² BREEAM ‘Excellent’
Grade A offices on two floors at Cannon House. Jones Lang LaSalle also provided Project Management services to
deliver the fit out and dealt with the Dilapidations on the client’s former premises.
Capacity, Exit Costs (Dilapidations, Cost of Works), Entry Costs (Refurbishment)
Major International Bank, Birmingham
Over the past 2 years the Jones Lang LaSalle team have provided advice on a variety of strategic matters. Initially the
short term identification of space to enter the Birmingham market, followed by securing a medium term occupational
solution (68,000 sq ft). Having acquired the medium term solution Jones Lang LaSalle project managed the
refurbishment and subsequent fit out of the office space. The team are currently assisting in a review of the long term
strategy, due to an approaching lease event.
US Corporate, Birmingham
The Birmingham Project and Development Services team recently assisted a large US corporate review their existing
estate (five out of town campus buildings totalling approximately 60,000sq.ft.) in line with their intention to consolidate
into a single building in a CBD location. This study considered the potential for changes to working practices, building
specification and running costs, location, available staff pool, access to transport, and wider business / profile
advantages. The original search focussed on six buildings. Test fits were subsequently undertaken on three
shortlisted sites and a recommendation made to relocate to a new 40,000 sq.ft facility in Central Birmingham.
AVIVA, Birmingham
The team were also recently appointed by a large pension fund to review potential options for a 50,000 sq.ft office
tower that it owned in Central Birmingham, where the lease was coming to an end. This review looked at several
options including a basic office refurbishment, upgrading to Grade A office accommodation and conversion to student
office accommodation or an hotel and was undertaken in conjunction with our local Agency, Capital Market, Hotels and
Residential teams. The study established that conversion to an hotel would create the best return A pre-let with a
national hotel chain has been agreed and we are currently in the design and procurement stage of the project which is
due to complete in Jan 2013.
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