30th Mar 2005 07:00
Land Securities Group Plc30 March 2005 30 March 2005 LAND SECURITIES GROUP PLC ("Land Securities" / "Group") DRIVER AND VEHICLE LICENSING AGENCY ("DVLA") Land Securities Trillium and DVLA sign property outsourcing contract Land Securities Group PLC announces that Land Securities Trillium has signed itsproperty outsourcing contract with DVLA. Under the terms of the transaction,DVLA has outsourced a major refurbishment programme, life-cycle capitalexpenditure, estates management and facilities management across its entire UKestate to Land Securities Trillium for 20 years. While Land Securities Trilliumwill be taking on rental obligations for DVLA, there will be no transfer offreehold property to Land Securities Trillium. Land Securities Trillium willreceive payment for the provision of its services and refurbishment works, via aperformance-related annual unitary charge and expects the contract to becomeprofitable in 2007. The estate comprises 58 properties, totalling 94,133 sq m, of which 14% by areainvolve the transfer of leasehold liabilities. The major refurbishment of DVLA's headquarter site at Morriston, Swansea willresult in a £30 million investment by Land Securities Trillium over the nextthree years. The headquarter site comprises 13 buildings totalling 65,711 sq m. DVLA's objectives in undertaking this long-term agreement are: • to attain modern, efficient and flexible working environments to support their cultural change programme; • to achieve operational efficiency and cost savings by dealing with a single "best in class" supplier; • to create financial certainty, transparency of costs and best value for money. Ian Ellis, Chief Executive of Land Securities Trillium, commented, "This is ourthird new client this financial year showing the growing interest in propertyoutsourcing as a flexible solution. The contract demonstrates that DVLA is aforward-thinking organisation and how they have committed to implementinginnovative changes to improve their organisation and help to achieve therecommendations of the Government's efficiency review. "We are delighted to be working with them to deliver better workplaces for theiremployees and customers, to simplify their property operations and to createbest value for money." Clive Bennett, Chief Executive of DVLA, commented "The contract will provide afoundation underpinning the DVLA's cultural change programme. It offers theopportunity to provide modern, efficient and flexible working arrangements in anenjoyable environment suited to a 21st century organisation." Ieuan Griffiths, Finance and Strategy Director of DVLA, welcomed the opportunityoffered by the contract, commenting "The DVLA's commitment to embrace new waysof working requires broad investment. Looking at alternative solutions, thiscontract offers best value for money for the taxpayer." - Ends - For further information, please contact: Land Securities TrilliumIan Ellis / Cat LeyTel: +44 (0)20 7796 5500 Financial DynamicsStephanie Highett / Dido LaurimoreTel: +44(0) 20 7831 3113 Land Securities Group PLCEmma DenneTel: +44 (0)20 7413 9000 DVLAPress officeTel: +44 (0)1792 782318 NOTES TO EDITORS: DVLA DVLA placed an advertisement for a property partner for its estatesrefurbishment programme in December 2003, which also marked the formalcommencement of the refurbishment project. The decision to develop an outsourcing project was the culmination of a detailedestates strategy review prepared jointly by DVLA and IBM (Business ConsultingServices). The estates strategy confirmed that DVLA would stay in Swansea in itsexisting location, but recognised the need for greater flexibility in the futureto respond to changing space and service requirements of DVLA. The contract is flexible enough to meet DVLA's future accommodation needs andincludes: • Refurbishment of DVLA's headquarter site at Morriston, Swansea, including the 16 storey tower block D and 3 storey block C • Delivery of facilities management services (maintenance, cleaning and catering) • Delivery of estates management services • New build office and other accommodation at sites in Swansea from which principally DVLA services are provided • Commitment by Land Securities Trillium of £30 million to fund these improvements. DVLA was assisted in this procurement by its team of professional advisers,principal advisers being IBM (Business Consulting Services) and PUK. Land Securities Trillium Land Securities Trillium, part of the Land Securities Group, is one of the UK'sleading providers of property outsourcing solutions. Capital, estate strategy,property management, facilities management and risk management services arecombined to meet the particular needs of corporate and public sectororganisations. Land Securities Trillium currently owns or manages over 8,400properties throughout the UK. Clients include the Department for Work andPensions, the BBC, BT, Norwich Union and Barclays Bank. Land Securities Group PLC Land Securities is a FTSE 100 company, quoted on the London Stock Exchange. Ithas been at the forefront of the UK's commercial property industry for 60 years.Today, the Group maintains its market leading position as the UK's largestquoted property company by providing commercial accommodation and propertyservices to a wide range of occupiers. The Group's objective is to createattractive and sustainable returns for its shareholders through its activities,which include property investment, development and property outsourcing. Land Securities holds a market leading position in three areas of the UKcommercial property market: • Retail, • London offices and • Property outsourcing Its £8.9 billion investment portfolio includes more than 810,000 sq m of officespace in Central London and substantial retail holdings in Oxford Street,Tottenham Court Road and Notting Hill Gate. In addition the Group owns 18shopping centres and 25 retail parks located across the UK. It has a substantial development programme with a number of development projectsincluding major retail-led urban regeneration schemes and Central Londonmixed-use developments. The Group is also master planning one of Europe'slargest regeneration schemes in Kent Thameside. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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