Olympic Efficiency

In April we posted about new working methods and achieving efficiencies in the working office (http://www.blogger.com/blogger.g?blogID=5846477312477271059#editor/target=post;postID=2402608171377203908).

We now learn that Government departments are taking steps to implement new ways of working to create flexibility, cost efficient and improved productivity.  It appears that numbers of civil servants will be relocating, on a temporary basis, from central London to a base in Croydon.

The move is being championed as an opportunity for central government to implement some of the more efficient practices of the private sector whilst also “helping to reduce pressure on London’s transport network during the Olympics” according to Cabinet Office Minister, Francis Maude. 

It is not certain whether this move is purely temporary, as, if the hoped for improvements are achieved then a more permanent solution could be found.  It has long been the stated goal of Central Government to move more of it’s London based activity out into the regions.  Spearheaded by the Government Property Unit, opportunities for estates rationalisation and collaboration by Departments are promoted.  Opportunities for interdepartmental estate rationalisation and co-location are continually being pursued and this latest Olympics based initiative has seen additional accommodation become available in St Leonard’s on Sea, Bedford, Dorking

and Reading.

Innovate:

Changing times call for ever more thoughtful approaches to your asset management challenges.  The current marketplace within commercial property is even more volatile than usual, and, whilst geography plays its part, the general view of the marketplace is that conditions are hard and likely to be so for the forthcoming time.

Spending time in careful consideration of the challenge this places on your business with regard to your built assets and liabilities is therefore well worth it.  In a previous post we have talked about the place within your business the build estate holds and the opportunity for the review and assessment of the estate in the light of this.

Detailed knowledge of your real estate liabilities will enable you to clearly plan ahead and, in conjunction with you business requirements, determine whether there are any opportunities to do things differently.

There may be scope to reorganise finances through the asset and balance sheet, to renegotiate terms with your landlord or reorganise loans on freehold occupancy.  Assessment of the utilised estate and how it could be improved, could allow for sub-letting (should the terms of the lease allow).  Group companies can potentially co-locate to reduce costs and vacating premises can save costs, even if the lease is still in force, with running and occupancy costs reduced to near nil and the potential for rates relief.

James Alexander Consultants are expert in assessing your portfolio and, with you, determining a strategy to develop the correct balance of assets, their relevance and performance for you.  We develop, plan and implement the strategy, leaving you to focus on core activity and opportunity.

eMail us on innovation@jaltd.co.uk or see our contact page for our numbers.  We look forward to speaking with you.

Battersea Update:

Following our blog post in December of last year reporting on the difficulties faced by REO, the owners of Battersea Power Station the administrators and receivers Ernst & Young have made a significant announcement today.

Malaysian investors SP Setia and Sime Darby Property have been confirmed this morning as the preferred bidders for the 38 acre site of the old power station in south London.

An exclusivity agreement has been entered into with the Ernst & Young, with a 28 day window to conduct due diligence investigations and contract negotiations prior to going ahead with the purchase of the site for £400m.

SP Setia and Sime Darby Property said that their plans “involve the development of a sustainable multi use real estate regeneration project that will provide economic impetus for the creation of a new vibrant centre for south-west central London”.

They have indicated that they will preserve much of the façade and the iconic chimneys and have also committed to construct a new underground station, forming part of the extended Northern Line.  This move is a key initiative in the success of the regeneration project.

There is much wailing and gnashing of teeth from Chelsea supporters this morning as Mr Abramovich and Co were also thought to be in the running for a shot at redeveloping the site.  They may be off for an early bath, but you never know, things can always change!