Re. DVLA
Land Securities Group Plc
30 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 its
property outsourcing contract with DVLA. Under the terms of the transaction,
DVLA has outsourced a major refurbishment programme, life-cycle capital
expenditure, estates management and facilities management across its entire UK
estate to Land Securities Trillium for 20 years. While Land Securities Trillium
will be taking on rental obligations for DVLA, there will be no transfer of
freehold property to Land Securities Trillium. Land Securities Trillium will
receive payment for the provision of its services and refurbishment works, via a
performance-related annual unitary charge and expects the contract to become
profitable in 2007.
The estate comprises 58 properties, totalling 94,133 sq m, of which 14% by area
involve the transfer of leasehold liabilities.
The major refurbishment of DVLA's headquarter site at Morriston, Swansea will
result in a £30 million investment by Land Securities Trillium over the next
three 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 our
third new client this financial year showing the growing interest in property
outsourcing as a flexible solution. The contract demonstrates that DVLA is a
forward-thinking organisation and how they have committed to implementing
innovative changes to improve their organisation and help to achieve the
recommendations of the Government's efficiency review.
'We are delighted to be working with them to deliver better workplaces for their
employees and customers, to simplify their property operations and to create
best value for money.'
Clive Bennett, Chief Executive of DVLA, commented 'The contract will provide a
foundation underpinning the DVLA's cultural change programme. It offers the
opportunity to provide modern, efficient and flexible working arrangements in an
enjoyable environment suited to a 21st century organisation.'
Ieuan Griffiths, Finance and Strategy Director of DVLA, welcomed the opportunity
offered by the contract, commenting 'The DVLA's commitment to embrace new ways
of working requires broad investment. Looking at alternative solutions, this
contract offers best value for money for the taxpayer.'
- Ends -
For further information, please contact:
Land Securities Trillium
Ian Ellis / Cat Ley
Tel: +44 (0)20 7796 5500
Financial Dynamics
Stephanie Highett / Dido Laurimore
Tel: +44(0) 20 7831 3113
Land Securities Group PLC
Emma Denne
Tel: +44 (0)20 7413 9000
DVLA
Press office
Tel: +44 (0)1792 782318
NOTES TO EDITORS:
DVLA
DVLA placed an advertisement for a property partner for its estates
refurbishment programme in December 2003, which also marked the formal
commencement of the refurbishment project.
The decision to develop an outsourcing project was the culmination of a detailed
estates strategy review prepared jointly by DVLA and IBM (Business Consulting
Services). The estates strategy confirmed that DVLA would stay in Swansea in its
existing location, but recognised the need for greater flexibility in the future
to respond to changing space and service requirements of DVLA.
The contract is flexible enough to meet DVLA's future accommodation needs and
includes:
• 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's
leading providers of property outsourcing solutions. Capital, estate strategy,
property management, facilities management and risk management services are
combined to meet the particular needs of corporate and public sector
organisations. Land Securities Trillium currently owns or manages over 8,400
properties throughout the UK. Clients include the Department for Work and
Pensions, 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. It
has 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 largest
quoted property company by providing commercial accommodation and property
services to a wide range of occupiers. The Group's objective is to create
attractive 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 UK
commercial property market:
• Retail,
• London offices and
• Property outsourcing
Its £8.9 billion investment portfolio includes more than 810,000 sq m of office
space in Central London and substantial retail holdings in Oxford Street,
Tottenham Court Road and Notting Hill Gate. In addition the Group owns 18
shopping centres and 25 retail parks located across the UK.
It has a substantial development programme with a number of development projects
including major retail-led urban regeneration schemes and Central London
mixed-use developments. The Group is also master planning one of Europe's
largest regeneration schemes in Kent Thameside.
This information is provided by RNS
The company news service from the London Stock Exchange
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