Knight Frank - Providing a wide range of property management services to high-class office accommodation in Victoria.

Posted by Knight Frank Newcastle on 24th May 2019 -

Client Hess Limited

Building Size & Use 198,000 sq ft of B1 offices

Appointment:  Property Asset Management commenced January 2008

Rent Roll  £8,466,715 pa

Service Charge £1,975,000 pa

THE BRIEF

To provide a wide range of property management services to multi-tenanted high-class office accommodation in Victoria. The client had an expiring long leasehold interest in which maintaining revenue stream was key, so an element of asset management was also required. The final part of the brief was to manage the planned preventative maintenance process to mitigate the dilapidations position when the overriding lease expired. Tenants include Mirabaud Bank, CQS Management, TATA, DONG Energy, Hay Group.

KEY OBJECTIVES AND CONSTRAINTS

To substantially improve service delivery by managing both agent and on-site management, restoring contractor performance and tenant relationships, void management to maintain rental income and appointment of consultants to assist with the production of phased planned preventative maintenance over the remaining term of the sub leases. ACTIONS AND OUTCOME Regularising leasing irregularities, including unlicensed tenant fit outs, unlicensed sub under lettings and illegal occupation of space outside the agreed demise. Secured wholesale electricity and gas tariffs with circa £250,000 annual saving. Re-tendered manned guarding, M&E, cleaning contracts within the first year with circa £90,000 annual saving. Our Building Consultancy has undertaken the refurbishment of the former canteen and kitchens to Cat A grade office accommodation, the refurbishment of both receptions, and the supervision of repairs to the two main atria glass roofs. Successfully let 30,000 sq ft to date through forming strong relationships with existing tenants.

ACTIONS AND OUTCOME

Regularising leasing irregularities, including unlicensed tenant fit outs, unlicensed sub under lettings and illegal occupation of space outside the agreed demise. Secured wholesale electricity and gas tariffs with circa £250,000 annual saving. Re-tendered manned guarding, M&E, cleaning contracts within the first year with circa £90,000 annual saving. Our Building Consultancy has undertaken the refurbishment of the former canteen and kitchens to Cat A grade office accommodation, the refurbishment of both receptions, and the supervision of repairs to the two main atria glass roofs. Successfully let 30,000 sq ft to date through forming strong relationships with existing tenants.