Mini-competition for a Contract to Provide Property Services to the Government Property Unit Response to Brief

August 2011

12 August 2011

Government Property Unit

By Email J Mark Ridley E: mridley@savills.com DL: +44 (0) 20 7409 8030 FAO Paul Mayes and Stuart Banks F: +44 (0) 20 7409 2635

20 Grosvenor Hill London W1K 3HQ T: +44 (0) 20 7499 8644 savills.com

Dear Sirs

CONTRACT TO PROVIDE PROPERTY SERVICES TO THE GOVERNMENT PROPERTY UNIT

Thank you for giving Savills the opportunity to tender for the next phase of the implementation of the Government’s property strategy for the Civil Estate. This project is clearly of paramount importance to GPU, Central Government, and the wider UK plc.

Savills was delighted to be appointed to the London and Bristol pilot project back in February. The work carried out with the GPU team over the last six months has given us critical insight into the demands and needs of your remit, and the political and property context within which you operate. I have maintained a close involvement in the work over this period and have recently met with John McCready and Robert Heskett to discuss progress. I can give you my personal assurance that the high standards of service set by the Savills team to date will be maintained across any further appointments.

We understand that your principal requirement is for a market-facing advisory role to help inform your strategy, together with the implementation of this. Savills has the most extensive network of offices throughout the UK, covering all sectors and this platform gives us unique market intelligence from experienced professionals. This we believe will continue to deliver best value advice for the GPU.

It has been our aim to respond to the submission in a clear and concise fashion following the requirements of the brief. Due to the importance of these appointments, if selected I will propose to continue my watching brief via our Savills internal steering group so that we can ensure that we maximise opportunities and leave no stone unturned in considering how to maximise value from the Civil Estate.

We remain totally committed to the existing contract, which continues on a project-by-project basis, and also to developing a similarly successful working relationship with the GPU Regional Teams on a national basis.

I look forward to the opportunity to meet you and the GPU team at interview stage.

Yours faithfully

J Mark Ridley Chairman & Chief Executive

Offices and associates throughout the Americas, Europe, Asia Pacific, Africa and the Middle East.

Savills Commercial Limited. Chartered Surveyors. A subsidiary of Savills plc. Registered in England No. 2605125. Registered office: 20 Grosvenor Hill, London W1K 3HQ

Contents

Contents 1

Introduction 2

Executive Summary 3

SECTION A – Qualities and Resources 7

SECTION B - Personnel 43

SECTION C – Charging 67

GPU – National Property Services Tender Page 1 Savills Response to Mini-competition Brief

Introduction

Savills is delighted to be given the opportunity to submit this response to the mini- competition brief issued by the Government Property Unit (GPU), under what we understand will now be the direction of the Cabinet Office (CO), rather than the Department for Business, Innovation and Skills (BIS) as previously. Within this submission we have answered each question in accordance with the brief. We confirm that we are not aware of any conflicts of interest that will preclude Savills from acting on this project. We trust our proposal is of interest. If you require clarification on any point, or need further information, please do not hesitate to make contact.

Liell Francklin, Director and Savills Contract Director T: +44 (0) 20 7409 8712 M: +44 (0) 7870 555 712 E: [email protected]

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Executive Summary

Understanding the context of the opportunity

The £370 billion estimated value of the Civil Estate is much publicised, as are the widespread and significant cuts to Departmental budgets. Within this context, the GPU is tasked with strategic management of Government property, devising strategy and implementing execution plans in order to drive out savings for the public purse. This vital role is carried out in conjunction with Central Government Departments and associated bodies, and their existing property strategies. The GPU national property services contract reflects the natural progression of Government property strategy, and dissemination into the regions of the positive outcomes of the London and Bristol pilot schemes.

Lessons Learned from Savills work on London and Bristol Pilot Projects

We are delighted to have been appointed to undertake an advisory role on the London and Bristol pilot project that directly preceded this contract. There are several building-specific execution plans under way at present with which we are involved. Through this work we have gained important insight into the modus operandi and remit of GPU and how it has evolved, and as such, the desired outcomes from this project. Key points include: • GPU operates as a facilitator and overseer of Departmental property strategies, with the benefit of a high level vantage point over capacity and demand across the whole civil estate. The primary goal is to cut costs for the Exchequer, with generation of capital receipts as a secondary aim. • This is currently focused on the Spending Review 2010 period, and is principally achieved through implementation of the National Property Controls (such as the lease moratorium), required space standards, improved FM contracts, and negotiations of more favourable terms, in the event that GPU approve a lease renewal in response to an application by a Department. • An additional layer of cost saving is delivered via accelerated exits. Advice is therefore needed from advisors regarding refurbishment costs, market specifications, alternative use options, current and forecast rental values and crucially, the attitude and amenability of landlords to doing deals, as well as an element of creative thinking, in order to drive out additional savings through early surrenders, rent erosion or bespoke property deals. • The requirement is then to follow this up with focussed market advice on each SURPLUS asset, from our position at ‘the coalface’ in each regional centre. Quite rightly in our view, during the London and Bristol project, the requirement has been to focus on the deliverable buildings as a priority, or where there is a ‘chain move’ that brings in overall savings which could only have been delivered via GPU’s holistic perspective. • Our initial support role was to collect and collate data on CORE and SURPLUS buildings, in conjunction with EPIMS, to inform capacity within the estate. Within Savills we have developed our understanding of the EPIMS system, through our work in London and Bristol, and the vital role that it plays in strategic management of the Civil Estate.

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• We have been impressed by the progress of GPU, how it has adapted from the pilot vehicle approach to more of a property advisory role, and the team’s detailed grasp of the property fundamentals of the Estate. This is not a contract that requires reams of paperwork and reports, beyond the initial compilation and collation of the templates and property terrier, particularly given that GPU will now be handling the modelling elements in house. • The working relationship between GPU and Savills has evolved during the Pilots to focus on a working list of actions, to push through outputs on key deliverable buildings, under the leadership of a specialist Agency Director. We propose to replicate this approach on this national contract. • In terms of procedure, the Savills team is entirely familiar with GPU required working practice in terms of reporting lines and procedures, and invoicing approach. We are familiar also with the terminology used within GPU, in terms of capacity and demand, which will ensure that the Savills team can ‘hit the ground running’ in the event that we are appointed. • We have also worked with Departmental property teams to match their property strategies with wider GPU goals. Therefore we understand the relationships between the two, and the importance of mutual cooperation, as well as some of the key individuals within Departments. • Understandably, public relations surrounding Government property are very sensitive, and our advisory role has necessarily been undertaken within this context. This relates in particular to disposals of assets, and we anticipate that this will be important under this new contract, where implementation of agency advice is likely to be more of a feature. • Similarly, accountability and transparency are key considerations for GPU. Whilst cost saving is the key driver, this needs to be taken in the context of political ramifications, and the wider implications of proposed moves. • Whilst we have the expertise and resources to undertake the full UK remit single- handedly, we appreciate that GPU will likely want to protect against the inevitable conflicts of interest by appointing more than one agent.

Overview of Savills proposal

Savills proposal does not seek to dazzle with graphics or unnecessary marketing material. Instead it focuses on how our expert teams can provide best in class commercial property advice to GPU. We understand the underlying principles and goals, and how best to assist in their delivery. Our delivery teams throughout the UK are not hampered unduly by existing estate management contractual relationships with Central Government Departments. Whilst we work with many public sector clients, our core business is market-facing. We know the landlords, developers and property companies that often hold the key to unlocking occupational savings, and how to extract them through the negotiation and deal-making process. In our preparation of the bid for the pilot projects, we debated the likely downstream national rollout of the project, in the context of our strong national office network and market presence. This strong coverage means that we can replicate the required outputs

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across the board, within the subtleties of each regional market place (see Savills office map below), and to the advantage of GPU. Savills is able to offer GPU the additional comfort of the added value potential that we can offer through our market leading research facility, led by Mat Oakley, our multi-sector strength (such as Hotels and Leisure), and additional specialist skills, such as energy consultancy. Indeed energy cost saving is likely to be a key area of focus for Departmental property strategies in the near future. Savills strength in planning and development is a key feature of our proposal. The expertise and resources that we can provide will be vital to delivery of accelerated exits for GPU, by demonstrating value enhancement options for landlords. Alternative use option appraisals, including assessment of deliverability, viability and value will also offer the potential for greatly enhanced capital receipts. Whilst we have learned much from the Pilots, it is important to realise that this is a different project. Property markets in London, both commercial and residential, are very different to the regions, as is the approach and perspective of landlords, particularly in relation to surrender of Government leases. What works in London as a property strategy, may not work in the regions. An instruction of this nature represents the perfect opportunity to grow our business in our chosen direction. We will leave no stone unturned in pursuit of success for the scheme, and look forward to being given the opportunity to demonstrate this to you going forward.

Source: One-Off survey commissioned by Estates Gazette, December 2009

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Savills offices map showing regional hubs to match GPU requirements

We understand GPU offices are currently located in Leeds and London, however we have put in place teams in the wider regions as per the brief to demonstrate how we will draw on our local market knowledge and presence, even if in practice client meetings take place in Leeds and London.

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SECTION A – Qualities and Resources

Savills has the capability and capacity to undertake in-house all of the identified service outputs, and has an excellent track record of having done so before, on a day to day basis. The only specific area that we propose to sub-contract will be M&E surveys, which form part of the building surveying role. The sub consultant will be FHP Engineering Services Solutions. They have a long standing relationship with our Building & Project Consultancy department and have provided consultancy support to Savills for a number of years in connection with technical due diligence commissions and M&E engineering design services, including on our work on the Pilot schemes.. For the sake of this tender submission, we understand that GPU requirements will not differ from region to region, and we have therefore outlined our understanding on a generic basis, rather than repeating on a region-by-region basis. When it comes to answering Question 2, which requires demonstration of credentials and experience, we have provided detail for each GPU region, in order to illustrate relevant local track record and expertise.

Question 1: GPU Requirements

• Categorisation support

Given the sheer number of assets within the UK Civil Estate, and the cost-saving remit of the GPU, it is critical that resources are channeled to those buildings where savings can be identified and realised. Certain buildings, particularly freehold assets or those with location or operation-specific requirements or features, will be designated as CORE. Our space planning and cost consultancy experts will be required to work with GPU and relevant Departmental property teams to seek to maximise capacity within such assets. The bulk of the remainder will be provisionally classed as SURPLUS, from which sub-categories can be identified, such as those with lease breaks/ expiries during the current spending round (SR10) and those with exits that fall in after SR10. We anticipate that GPU will thereafter seek to identify those within the SR10 period where occupational demand is limited, property costs are high or where there is a particularly suitable alternative use, and endeavour to drive out cost savings. Savills role will be to work with the GPU teams initially to review the properties classified as CORE and SURPLUS, and then to make recommendations as to changes to this categorisation as further detail comes to light, following building inspections and review of market evidence. In order to do so, we propose to work on a standardised template pro- forma to record details on each asset, when compiling space data and reviewing cost and value options. These templates will provide a consistent basis for modeling, categorisation and options analysis.

• Space utilisation and planning

A key feature of Government property policy is to cut excess and under-utilised space within the Estate. On this basis, clear guidelines have been issued to Departments which stipulate a target occupancy ratio of 1 desk per 8 sq m, and 10 employees per 8 desks. If we are successful, we understand that our role will be to verify data, using EPIMS as a starting point, in relation to current building occupancy by undertaking ‘on the ground’

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assessments, on a building by building basis. We will need to bear in mind that the situation in each building is likely to be fluid, as Departments respond and adapt to general programmes of staff reduction and reassignment which is currently underway. We will then be required to provide advice on whether each building on our action list would be capable of delivering the 1:8 occupancy ratio, or if not, what the maximum capacity position might be, with and without refurbishment and/ or restacking. Consideration will be given to existing workstation configurations and opportunities for replacing these with more efficient arrangements, comparison of existing densities of occupation on an open plan and cellular office basis and comparing these with current industry standards and benchmarking accordingly to maximise space efficiencies / space utilisation. Consideration will also be given to flexible working scenarios including hot desking based on guidance and briefing provided by GPU, having analysed data regarding FTE’s. Alongside the Government’s standards, we will use recognised industry guides for benchmarking, such as the BCO Guide for Offices and Employment Densities Guide 2nd Edition 2010 authored on behalf of OffPat and the HCA. Optimum density of occupation will be reviewed in relation to existing building constraints, including but not limited to, fire precautions and means of escape, health and safety and ability of building engineering systems, if any (cooling, power and ventilation), to cope with proposed maximum numbers. The output of this exercise will be to demonstrate at a strategic level on a site by site basis that there are real and tangible opportunities to improve space utilisation for the purposes of consolidation and increasing density of occupation. This will then be subject to further and more detailed assessment and design as part of the next stage, leading up to project implementation. Ultimately, this will enable strategic decisions to be made regarding the reduction of office space across the entire portfolio whilst retaining, if not enhancing, important adjacencies between Departments and business units to improve workflow and efficiencies.

• Accelerated lease exit options

Our ability to assist in driving out accelerated exits from leasehold occupations is crucial to the delivery of GPU’s underlying remit. The initial categorisation phase at (i) above will produce a target list of properties within the SURPLUS category. We will then be expected to review lease terms and to assess market rent levels, marketability, existing and alternative use value comparison, costs and high-level feasibility, and planning policy, based on our professional experience and market knowledge. This process will be led by Savills Regional Contract Managers, who are all agency experts in their respective local markets, and retain a database of occupiers, current requirements and a development pipeline in order to monitor supply and demand. In conjunction with our lease consultancy teams, their role will be to advise on what will and what will not ‘work’ from a market and legal perspective, in conjunction with cost advice detailed in the next section. Savills experience in the agency market will bring to bear the option of conventional exit strategies, as well as more creative alternatives. These may include: - Conventional assignment or sub-letting - Exercise of lease termination options - Negotiating early lease surrender

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- Lease restructuring to mitigate costs - Landlord refurbishment/ rent erosion deal - Redevelopment opportunities for redundant properties - Freehold purchase and resale - Joint ventures with freeholders - Marriage value or third party shareholder opportunities

Savills carries out option appraisals on a daily basis to provide ongoing and best quality strategic advice, and the best value exit strategy itself is often the culmination of a long term asset management strategy. In terms of immediate disposal, sales are considered via private treaty, auction or as part of a larger portfolio, dependent upon the best exit/pricing strategy devised and considered, according to property type, tenant covenant, lease length, location and specification. This is assessed in light of current market conditions, benchmarks, market performance, target market and debt markets. This process is replicated for portfolios where assets may be bundled according to benchmarked characteristics, such as lease length or tenant covenant. We are experienced in all potential exit strategies, including joint ventures, option agreements, development agreements and outright sale. It is worth observing that there may be a requirement for acquisition of property, either to maximise value of an existing asset through marriage value, or to provide alternative accommodation for a relocating Department. In practice, the latter is unlikely but the former could well occur. Savills agency teams regularly work with development and planning colleagues to assemble land prior to regeneration and redevelopment, and are highly competent in acting on behalf of clients in the site search, appraisal, due diligence and purchase process. The requirement for planning and development input will vary according to each property, and our expertise is outlined below. A review of occupational and head leases is likely to be a constant requirement however, when it comes to advising on options for accelerated exits. It will be imperative to identify any terms, clauses or other lease issues which could have adverse consequences on future costs (e.g. in relation to rent reviews) or future disposal strategy (e.g. tenant break options). The requirement will therefore include consideration of lease start and termination dates; 1954 Landlord & tenant Act security of tenure provisions; rent review frequency and assumptions; alienation provisions in terms of assignment and sub-letting, such as the requirement for Authorised Guarantee Agreements (AGA) on assignments; and lease termination dates, notice periods and conditions. Our advice will then be presented to and discussed with GPU. This will provide the opportunity to consider our suggested options from a political/ Departmental perspective. If appropriate we will then be required to work with GPU to prepare execution plans, marketing strategies, or potentially planning and development appraisals, prior to implementation of agreed strategies.

• Agency and cost mitigation advice

A key consideration of our accelerated exit option advice will be the cost implications of implementing a given strategy. The information gleaned from the visual inspections will

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enable lifecycle costings to be prepared for assessing ongoing asset management liabilities as well as enabling the assessment of refurbishment/ refitting options and appraisal of potential dilapidations liabilities and associated budget costs. This information can then be used as part of the financial modeling process, in conjunction with GPU. Existing information on the properties, such as record drawings, measured surveys, legal documentation, O&M manuals, Health & Safety Files etc will be required as part of the appraisal process but will not necessarily prevent meaningful advice being generated if incomplete. In the absence of the aforementioned information, our commercial experience in the field of technical due diligence of tenanted properties would be brought to bear for the benefit of GPU. GPU will require a matrix of cost for the disposal options identified for each SURPLUS property and opportunities for the baseline cost to be reduced. Relevant considerations will include comparative costs of: - Conventional assignment or sub-letting - Exercise of lease termination options - Negotiating early lease surrender - Lease restructuring to mitigate costs - Landlord refurbishment/ rent erosion deal - Redevelopment opportunities for redundant properties - Freehold purchase and resale - Joint ventures with freeholders - Marriage value or third party shareholder opportunities

In addition to costing exit strategies for accelerated moves, Savills is able to advise on the cost of refurbishment, restacking and redevelopment in relation to CORE buildings and the need to maximise FTE capacity. We also have experts on rights of light, service charges, party walls and capital allowances.

• Town planning and redevelopment opportunities

Savills is one of the UK’s leading planning consultancies, and in combination with our similarly successful development consultancy department, is extremely well placed to drive value for GPU through working the planning system. Savills strength in planning and development is a key feature of our proposal, and the expertise and resources that we can provide will be paramount to the delivery of accelerated exits for GPU. Our experience on the GPU project in London to date has required minimal planning expertise, principally because the majority of accelerated exit work has been driven by surrender, refurbishment and reletting deals. Outside London, where office markets are less resilient, it is likely that alternative use considerations will play more of a part in the preparation and delivery of accelerated move options. The requirements of GPU in broad terms will be to seek alternative use proposals that generate value and mitigate costs, and which are deliverable in accordance with planning policy and practice. The outputs of such an exercise will offer a negotiating tool when

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discussing with landlords and freeholders early exits from leases, as well as potentially informing delivery strategies for assets held freehold by Departments. On a project-by-project basis, GPU’s requirements are likely to include some or all of the following: - Master planning - Development and planning briefs - Strategic advice - Section 106 agreements - CIL/ADZ/TIF and tariff work - Sequential testing/ impact assessment - Site search and appraisals - Community engagement - Preparation of applications - Planning appeals - Planning policy promotion - Retail Impact Assessments - Enabling development, heritage and conservation - Listed building consultancy - Urban design and massing - Environmental Impact Assessments Savills is well placed to provide expert advice on all of these, as well as other specialist areas of planning consultancy.

• Development appraisal valuations

As with our understanding of GPU’s potential planning consultancy requirements, we anticipate development appraisals may be required to reinforce negotiating strategy and position by demonstrating value that landlords or freeholders might otherwise not have fully appreciated. This will require expert knowledge of mixed use development, including phasing, typology, cost, massing and density, feasibility and deliverability, as well as value of completed units. Such services form part of the day-to-day work of Savills development valuation teams. The teams also benefit from being able to draw on our network of local residential market and new homes experts, who can give up-to-the-minute sales and value advice. We have assumed that full Red Book and Green Book compliant valuations are not required as part of this process, however if they are, we have a dedicated UK-wide valuation department who will be able to provide the service.

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• Business case advice and support

Our understanding of the GPU requirement in this area is support for the in-house team in the preparation of strategy documents that are required for Cabinet Office and Treasury approval. This assessment is based on our work on the Bristol and London pilot projects, which consisted of inputting value and cost assumptions for the Pathfinder document. In the event that we are successful, we anticipate a similar role under this contract, in advance of the provisional October deadline for agreement of regional rationalisation strategies. Our advice will be founded in the accelerated exit strategy, agency option and cost mitigation work that will be undertaken at the outset. It will involve providing inputs to the GPU modeling function. The validity of conclusions drawn will therefore be dependent on the quality of the data that we provide at the outset. It may be that in this case, GPU require the successful consultant to have more of a hands-on role in preparation of the business case. If so, Savills is highly experienced in producing outline and full business cases and is fully versant with the requirements of the Treasury Green Book. Critical elements of the process might include: - Ensuring an agreed ‘Do Minimum’ base-line against which all options can be assessed - Identifying, appraising and modeling principal chain moves and accelerated exits, some of which might already be under way - The evaluation of these strategic options, including sensitivity analysis and risk assessment - Working with HM Treasury to assess the budget and funding implications of each strategic option, and preparing the evidence basem, which will be required to satisfy Departmental Accounting Officer obligations on a move by move basis

• Agency implementation

The implementation phase of the project will follow the preparation of business case and rationalisation strategies, which we see as the core requirement of this project. Needless to say, Savills is ready, willing and able to deliver any and all of the agency options that will form the basis for our options advice provided during the first phases of this contract, if we are appointed. The role of Savills Contract Director, Assistant Contract Director, and Regional Contract Managers will be vital during the implementation phase, as it is possible that several specific disposals are underway at any one time. It will be important that all teams remain focused on the delivery of best value for GPU throughout.

• Other ad hoc property advice

It will be the responsibility of Savills Assistant Contract Director Alex Dawson, to match Savills resources with any additional property requirement issued by GPU. We are confident that we will be able to meet any demand that is forthcoming, however in order to cover all eventualities, we have a robust sub-contractor policy in place in the event that we need to source additional specialisms.

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Question 2: Experience and credentials, and ensuring delivery efficiency

We have outlined below our capabilities in the provision of the required outputs across each region, according to the brief. In terms of delivery efficiency, this Savills proposal focuses on how our experienced teams can provide best in class commercial property advice to GPU. Director-led delivery is a key feature of Savills business structure, with further input and supervised support from other staff delivered through our team led approach, which ensures an efficient delivery structure. Savills contract management team and Internal Steering Committee for this project (see question 4), will monitor efficiency of our regional delivery teams. Our existing experience of GPU requirements, in terms of delivery efficiency, stands the Savills team in good stead in this respect.

(i) Categorisation support

In contrast to the other eight service outputs, there is less of a geographic specific requirement to the categorisation support element of the work, and therefore we have not sought to provide examples of our experience and credentials on a region-by-region basis. As with our work with GPU to date, we anticipate that we will be provided with details of buildings that have already been provisionally designated as CORE or SURPLUS, according to tenure, lease expiry date, Departmental occupational requirements and property cost. Our role will then be to work with the GPU teams to update this categorisation as further detail comes to light following building inspections and review of data. Savills regularly undertake similar exercises for corporate clients, although given the disparate nature of corporate business, each time we develop a bespoke approach to categorisation. Key to this is the need to understand the client organisation and business drivers, from which the list of criteria can be drawn. This will often include sub-criteria according, for example, to back office and public facing assets, which will have different requirements. Crucial to the ability to categorise productively is the need for accurate and consistent bases for assessment. For example, and as we found at the outset of the Pilot schemes, it is important that the same component parts are used when calculating property costs, such as utilities costs. Indeed the accuracy of categorisation always depends on the quality of data available. Our usual approach is then to compile information into an automated dataset, usually via Excel or equivalent, and to apply the agreed set of criteria to filter into categories. It is advisable to test a sample 5% of the portfolio, depending on size, in advance of the reviewing the entire portfolio, and also to sense check manually the outputs. As an example of our experience, the Savills team has recently carried out a strategic review of a major international company operating in the defence and education sectors. This covered a diverse property portfolio of 300 properties across the UK, centred in London and Bristol. The strategic review has identified various opportunities across the portfolio which will lead to annual savings of over £7m or 20% on property costs. We have also undertaken strategic portfolio reviews for Anglian Water, whose 6,000 assets stretch across eastern England, the Midlands and London, and for Thames Water, who own approximately 5,000 across London and South East. The process can also work the other way around, in terms of assessing a client’s business, drivers, and space requirements prior to acquiring space. For example, Savills are advising

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Liverpool Mutual Homes on their occupational needs in Liverpool. The team have advised LMH on the preparation of reports to inform their property strategy ,which has resulted in a 20,000 sq ft acquisition in the Liverpool City Centre, along with two further future acquisitions of circa 2,000 sq ft each in both North and South Liverpool. These will allow the housing association to work more effectively with their tenants. We are working closely with Savills building surveying department to make sure that the most appropriate space is acquired and that LMH can work as efficiently as possible.

(ii) Space utilisation and planning

North West The Manchester based Building Consultancy team comprises 10 Chartered Surveyors and three support staff. The team is split broadly into two specialist groups, one focussing on the Offices sector and the other dealing with Industrial, Retail and general professional work. Within both the Office and Industrial sectors, the team has significant experience acting on behalf of Freehold and Leasehold occupiers and also on behalf of Landlords. The Offices group, headed by Gary Bulloch, has particular expertise in the formation and implementation of Accommodation Strategies on behalf of multi-site office occupiers. The team is currently engaged by six North West based Registered Social Landlords (Housing Associations) who are at various stages of reviewing and implementing changes in their occupation of commercial premises. The scope generally comprises the consolidation of 250 to 350 staff and in some cases the sustainable redevelopment of existing freehold assets. The Savills team undertakes significant projects across the North West and beyond, with substantial recent and current projects in Manchester, Liverpool and Preston and with many other projects throughout the region. The primary focus is on existing property and within this sphere the team has developed a strong focus on the identification of sustainable and cost effective long term refurbishment solutions with an emphasis on the effective interrogation of dated services. We have considerable experience of Listed property and the team has a strong costing capability which is further supported by a quantity surveying team based in Savills Liverpool office. As an example of the team’s work, Savills was appointed to undertake an Accommodation Review on behalf of Helena Partnerships, a Registered Social Landlord based in St Helens. The work entered around their head office and area housing office provision and likely future requirements. The review culminated in the decision to acquire a new 25,000sqft head office building and to undertake the sustainable refurbishment of two freehold area offices of 3,000 and 5,000 sq ft respectively. Savills advised Helena Partnerships on the negotiation of terms with the preferred developer and subsequently monitored the construction of the building on behalf their behalf. Savills also acted as Contract Administrator for the fitting out of the head office and for the sustainable refurbishment of both area offices. A number of similar instructions have since been secured following recommendation by Helena Partnerships.

North East The Leeds Building Consultancy Team works closely with our Manchester team and consists of 12 qualified building surveying staff plus support staff. The team advises on all aspects of building surveying but particularly focus on project based work. Savills in house

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team specialise in space planning, pre-acquisition surveys, dilapidations, new build project management and design and refurbishment of all types of commercial property. The team works with a range of public and private sector clients across the region. For example, we have recently advised a local firm of solicitors (156 staff) of their space requirements to determine whether they renew their current lease or look for alternative new office accommodation in the city centre. We have provided space planning and cost advice as well as a dilapidations assessment in order to present results with our agency colleagues. Similarly, we have advised the Yorkshire Housing Association, and have undertaken a survey and carried out a space planning exercise for their head office.

Midlands The Birmingham Building Consultancy team comprises 5 Chartered Building Surveyors and two trainees. The majority of qualified staff originate in Building Surveying practices, which complements the multi-disciplinary nature of Savills Birmingham Office. Team members do not restrict themselves to particular aspects of Building Surveying, and at any one time each member will have a diverse range of instructions covering different property sectors and types of instructions, including refurbishment and extension projects, dilapidations, space planning and pre-acquisition surveys. Specialisms held within the team include Architectural Conservation and Environmental Assessment. The team work throughout the greater Midlands area and, as part of the national service line, work more widely, including assisting the London team with the initial GPU instruction in London. As examples of the team’s work, current instructions include the refurbishment and fit-out of an office in Coventry, an extension to an office at University of Warwick Science Park, the demolition and decontamination of a 65 acre former car factory site in Birmingham and the assessment of a national property portfolio to establish its suitability for fitment of PV arrays. Savills was commissioned by the National Health Service Institute to undertake space utilisation analysis and subsequent space planning following their move to the University of Warwick Science Park, with the relocation coinciding with a significant reduction in staff numbers and a change to in-house hosting of seminars and similar events. The changes to their working practices dictated a high proportion of flexible space, and the solutions adopted by Savills saw them incorporate sufficient floor space for all events, and staff accommodation, into a building approximately 30% smaller than their previous home. Savills were already acting, on behalf of the landlord, as project manager for the refurbishment of their new building and the NHSI’s fit out requirements were incorporated into the Cat A refurbishment contract. Savills was instructed by Mapeley, landlord of City Centre House, Birmingham, to undertake a partial refurbishment of the building with the HMRC remaining in situ. Savills undertook space planning, design and specification and also acted as contract administrator. The works required careful phasing and close liaison with the tenant’s representatives to ensure minimal disruption to the office’s operation.

South West Savills Bristol Building Consultancy team comprises 3 fee earners with a combined property experience of over 80 years. The team covers Bristol, South Wales and the South West and have a range of instructions in various locations including Bristol, Taunton and Plymouth. The team has a diverse range of clients including public sector, property

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companies, institutional investors, developers and corporate occupiers. We provide design, development and feasibility advice to developers, owner occupiers and tenants. We also deal with dilapidations, condition schedules and fabric surveys. The team has acted for the GPU in the Bristol Pilot scheme providing consultancy and strategic advice for the Government Estate in the Bristol area, the Welsh Assembly Government and Bristol City Council, and acted for the SW Regional Development Agency (SWRDA) until it was disbanded by the coalition. In terms of more specific projects, Savills have been retained by HEFCE, who occupy 40,000 sq ft at Northavon House which is within the University of the West of England Campus. UWE have expressed a desire to surrender the lease as they require the building for their own use. HEFCE are aware of this and are keen to relocate as their building is underutilised, this would produce a rental saving of £740,000 pa. The Savills team has advised on future space requirements for a reduced organisation and on dilapidations and reinstatement relating to Northavon House. Acting for the GPU under the Bristol pilot scheme Savills Bristol has worked closely with the GPU regional office to review the Bristol and Bath Government Estate comprising some 2.8M sq ft. With input and advice from office team, rating consultancy and the landlord and tenant team, we have reviewed the key holdings to identify the core estate and potential early exits in order to achieve savings in the rental budget. We have reviewed the Burghill Road site, to examine the feasibility of creating a Government campus on this long leasehold site in the NW of the city. We have undertaken initial capacity assessments on the whole Government estate in order to identify surplus capacity within individual buildings, and opportunities to increase density of occupation by encouraging sharing of space between Departments.

South and East Savills Building Consultancy team consists of specialists in advising on office space planning, refurbishment/fit out design and managing relocations and office construction projects. The team has built an enviable and substantial track record within the workplace market, acting for a wide range of office occupiers. Staff cover all disciplines required by GPU including Building Surveyors, Chartered Project managers and Quantity Surveyors with a compliment of over 50 staff in London and the South East of England. A number of the team are leading industry experts in their disciplines including office space planning and dilapidation matters and can advise on lease end or break clause strategies. We are currently advising GPU on refurbishment and exit options at 36 Whitehall and 1 Palace Street, London. Similar to our role in Bristol outlined above, Savills building consultancy team in London are currently assessing the space utilisation and space planning options for 36 Whitehall, London on behalf of GPU. A full team of mechanical, electrical and structural engineers are appointed together with Breeam assessor and cost advisors to show the current and achievable capacity and the cost implications of these options. In addition, the team has advised numerous clients in the South East regarding their occupancy requirements, dilapidations advice and property exit strategies including management of the office relocation and fit out process. Examples include Murco Petroleum from their dated offices in Finchley to new efficient offices in St Albans (23,000 sq ft) where their dilapidation liability was substantially reduced and were able to move to smaller accommodation. We also advised Zurich Insurance on their space utilisation and

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requirements relocating staff from five locations to new office premises amounting to over 15,000sq.m in Farnborough and Fareham. Paradigm Housing was also advised on their use of space at their existing offices in High Wycombe and assessments made on a number of property options. Paradigm relocated to new offices at Woburn Green near High Wycombe following the sale of their existing office.

(iii) Accelerated lease exits options

The strategic optioneering required under this service line is predominately an agency function, and will be led by Savills lead Agency Director in each region. Strategy will be broadly driven by a combination of rental differentials between passing and forecast market figures and what can and cannot be implemented under existing lease teams, as well as consideration of costs as covered in section (iv). Therefore, and particularly when considering potential chains of Departmental moves, and the overall feasibility of them, our advice will need to be based on a review of leases for a number of properties and occupiers. Therefore, Savills Agency teams will also need to draw on the expertise and experience of Savills Lease Consultancy teams, and we have outlined below details of the experience and track record of both, in each region. This should be read in conjunction with Savills planning, development and building consultancy expertise, covered in the relevant sections within this submission.

North West Savills North West agency team comprises 6 fee earners with over 78 years combined property experience in the region. Clients include local authorities, housing associations, major corporate occupiers as well as private and institutional Landlords. In 2011 the Savills North West Office was awarded “The Best Regional Property Advisor” by the Estates Gazette, as voted for by the North West business community, and in 2010 we received the award for the “Best Office Agency Team” at the Insider property awards. There is a vast amount of Government property holdings located within the North West and these vary from large city centre offices to small town centre holdings. Savills Lease Consultancy benefits from first hand knowledge on many of these properties. The team is small but experienced benefiting from over 25 years experience in the Northern Markets. Having represented both landlords and tenants on all types of properties throughout the northern regions, the team would be able to provide an invaluable insight and knowledge to the varying properties. The team works very closely with its agency colleagues and represent many of the major landlords and occupiers within the region. Clients in the region include amongst others Axa Real Estate, Threadneedle, AVIVA, Argent, Standard Life, American Express, Lancashire County Council and HSS Hire. In addition within the team previous experience includes asset management, rent reviews, lease renewals , acquisitions and disposals on many of the of the regions Government buildings, including the Regional Head Quarters for the Crown Prosecution Service, Inland Revenue and Customs & Excise. Our experienced team has a valuable insight having previously been one of the main points of contact for the Region on the Inland Revenue and Custom and Excise portfolio

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prior to PFI transfer and a main asset manager for the North West and Midlands for the CPS for circa 5 years. In addition our team has previously undertaken work on behalf of the DVLA, The Court Service, Job Centre plus and DWP in various properties throughout the North of England. Consequently our team benefits from first hand knowledge of many of these buildings and their associated landlords. In terms of direct experience, the Savills team has been advising the tenant on one of the largest and landmark holdings in Manchester city centre. Our experience and knowledge of the market and the landlord prevented any increases in rent being incurred on this property. Part of the property has been sublet and reviews were then undertaken with the sub-tenants and overall the clients’ operational costs were kept to a minimum. In terms of out of town locations, our in depth knowledge of the market and relationship with the landlord was of a financial benefit when representing a national occupier on the rent review on their 40,000sq ft office building, and as a result prevented any rental increase. Negotiations were then entered into with the landlord over restructuring the lease and as a result far greater cost effective terms for the tenant were achieved and savings of circa £500,000 were attributed. In addition, and with particular reference for GPU, we provided lease consultancy clients need for the property had ceased however the lease still had a number of years remaining. The property was located in a small town in the North West and vacancy rates were consistently high. The landlord had advised the tenant that they were not willing to concede a surrender. Following our appointment our team sourced a new strong covenanted tenant and successfully negotiated the introduction of this tenant for a new longer lease in return for our client being released from their existing liability.

North East

Savills Agency department in the region is based in Leeds, and has over 35 years of experience in the Yorkshire and Northern region office market, including in Newcastle. The team has advised many occupiers on relocations in both the public and private sector. We are currently aware of several Grade A requirements in the Leeds market including Leeds City council (120,000 ft² currently on hold), Walker Morris Solicitors (90,000 ft²), N Power (120,000ft²), Gaz de France (35,0000 ft²) and Hammonds (50,000 ft²), and in Newcastle including The Newcastle Building Society (35,000 ft²), Ernst and Young, Dickinson Dees (15,000 ft²), B Sky B (60,000 ft²) and NHS, albeit currently under review. This knowledge will put us in a good position in terms of considering options for reuse of current Government space. Also, the Savills team has recently undertaken on behalf of NSPCC a full and comprehensive analysis of the Newcastle in town and out of town office market, including supply, take up and availability. We have valued the one of the most prominent Grade A city centre office buildings, comprising circa 120,000 sq ft and have valued circa 700,000 sq ft of vacant and leased offices on a pre-eminent business park. In the wider North East area we have recently completed the valuation of a portfolio comprising commercial development land, office and industrial units, a shopping mall and an out of town retail/leisure unit.

Our current contracts include providing full portfolio restructure over a 3 year period (mainly acquisition and lease consultancy work). The team is currently 12 months into this

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contract and has acquired over 13 service centres and 3 regional headquarters to date. This project has been co-ordinated from Leeds, but stretches across the region. The Leeds Agency department is managing this national restructure and overseeing all acquisitions ranging from 3,500 sq ft up to 15,000 sq ft. The acquisition process has required us to conduct market searches and report on assets in various UK cities including Blackpool, Hull, Bradford and Leeds. In addition, the services have included negotiating terms such as rents and incentives which can be achieved in the various locations, and working towards a specific timescale that the NSPCC have in place over the next 2.5 years. In terms of lease consultancy, there is a vast amount of Government property holdings located within the North East and these vary from large city centre offices to small town centre holdings. Savills Lease Consultancy benefits from first hand knowledge on many of these properties. The team is small but experienced benefiting from over 25 years experience in the Northern Markets. Having represented both landlords and tenants on all types of properties throughout the northern regions, the team would be able to provide an invaluable insight and knowledge to the varying properties. The team works very closely with its agency colleagues and represent many of the major landlords and occupiers within the region. Clients in the region include amongst others Axa Real Estate, Threadneedle, AVIVA, Argent, Standard Life, American Express, Lancashire County Council and HSS Hire. In addition within the team previous experience includes asset management, rent reviews, lease renewals, acquisitions and disposals on many of the of the regions Government buildings, including the Regional Head Quarters for the Crown Prosecution Service, Inland Revenue and Customs & Excise. Our experienced team has a valuable insight having previously been one of the main points of contact for the Region on the Inland Revenue and Custom and Excise portfolio prior to PFI transfer and a main asset manager for the North West and Midlands for the CPS for circa 5 years. In addition our team has previously undertaken work on behalf of the DVLA, The Court Service, Job Centre plus and DWP in various properties throughout the North of England. Consequently our team benefits from first hand knowledge of many of these buildings and their associated landlords. As a specific example, Savills was instructed on behalf of GE Real Estate to undertake the reviews on a flagship seven storey Grade A office building on the Edge of Leeds city centre, comprising 40,000 sq ft of space. Savills successfully negotiated the rent reviews for each holding within the property and documented the matter.

Midlands Savills Birmingham office agency capability is underlined by calibre of current client and instruction base. In Birmingham City Centre the team are advising, leading UK property company British Land on 103 Colmore Row and 284,000 sq ft office scheme situated in a 100 % pitch close to St Philips Square. Similarly they re are retained by German fund CRI regarding the letting of remaining space in One Snowhill existing occupiers include Barclays Bank and leading accountancy practice KPMG, the building is considered one of Birmingham’s flagship office schemes. Other notable City centre clients include Henderson, Catalyst Capital, Axa Insurance and Quintain Estates. Demonstrating a comprehensive knowledge and experience in wider Midlands market, Savills are retained on leading business Park Schemes including Blythe Valley Park (by

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Liberty Property Trust/Doughty Hanson); a 200 acre park with occupiers include Oracle, Ove Arup, Siemens and Kier Group at junction 4 of the M42, and Whitley Business Park, Coventry (by St Modwen), a 90 acre park occupiers include Jaguar Landrover. The Savills team is also active in providing balanced advice the Birmingham Office to numerous corporate occupiers on all aspects of office occupation. Notable clients include Yell, Lafarge, lawyers Anthony Collins and Brit Assurance. Despite challenging market conditions Savills Birmingham office agency team have enjoyed a number of notable recent successes including 26,000 sq ft sale of self contained office to Construction Company the Kier Group and a further 25,000 sq ft sale of new build offices in Coventry to Jaguar Landrover... Co-stars recent survey saw the team placed second within Birmingham for corporate acquisition work. The Birmingham Lease Consultancy team consists of a Director and Associate Director. We act for a large number of Institutional Landlords, Property Companies, Corporate Client and Universities and Colleges throughout the wider Midlands area. Key clients include Aberdeen Asset Management, CBRE Investors, HSS Hire, National Grid, Standard Life, Cheval, Birmingham City University and Stratford upon Avon College. The team is currently acting on behalf of National Grid to regear a subtenant lease on 60,000 sq ft of prime office space in Solihull Town Centre with a lease extension option operable in March 2010, and the NG head lease limited to 4.5 years to expiry. The role encompassed negotiation of revised lease terms, liaison with superior landlord and monitoring legal process, and the agreement now successfully concluded.

South West Savills Bristol office agency team comprises 3 fee earners with a combined property experience of over 30 years. The team covers Bristol and the South West and has a range of instructions in various locations including Bristol, Cheltenham, Swindon, Taunton and Plymouth. We have a diverse range of clients including public sector, property companies, institutional investors, developers and corporate occupiers. Savills provides advice on property disposal, acquisition, occupational strategy, development and investment, and currently have some 50 individual disposal instructions amounting to circa 256,000 sq ft across the region, with a further 500,000 sq ft in the development pipeline. The team has a significant track record in the local market. As an example, Savills Bristol was instructed to acquire a new HQ office building at One Glass Wharf, Bristol for Burges Salmon solicitors. The instruction included advising on procurement strategy, identification of a long list of site within 10 minutes walk of Temple Meads station, assimilating the long list into a shortlist of 4 sites. The team was then engaged in producing a detailed request for proposal document and design brief for the requirement, carrying out a marketing exercise to secure the most competitive offers from the 4 shortlisted developers. We then negotiated heads of terms for the leasehold interest, and advised the client on the selection of One Glass Wharf as the preferred site to acquire 175,000 sq ft as their new Bristol HQ. The project involved office agency, development consultancy, and investment teams and required liaison between the Bristol and London offices. Similarly, acting for the GPU on the Bristol pilot scheme, Savills Bristol have worked closely with the GPU regional office to review the Bristol and Bath Government Estate comprising some 2.8M sq ft. With input and advice from building consultancy, rating consultancy and the landlord and tenant team, we have reviewed the key holdings to

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identify the core estate and potential early exits in order to achieve savings in the rental budget. Using input from the building consultancy and planning teams we have reviewed the Burghill Road site, to examine the feasibility of creating a Government campus on this long leasehold site in the NW of the city. We have undertaken initial capacity assessments on the whole Government estate in order to identify surplus capacity within individual buildings, and opportunities to increase density of occupation by encouraging sharing of space between Departments. We have also acted for the Welsh Assembly Government and Bristol City Council, and acted for the SW Regional Development Agency (SWRDA) until it was disbanded by the coalition. In terms of our knowledge of the market, and the local public sector occupiers, we are aware that HEFCE occupy 40,000 sq ft at Northavon House which is within the University of the West of England (UWE) Campus. UWE have expressed a desire to surrender the lease as they require the building for their own use. HEFCE are aware of this and are keen to relocate as their building is underutilised, this would produce a rental saving of £740,000 pa. Similarly, the Environment Agency occupies Horizon House, a new highly sustainable Grade A exemplar office building of 70,000 sq ft. The lease has 20 years to run, therefore to be retained as CORE under the Bristol Pathfinder, but believed to have spare capacity which can be utilised. We believe that there is spare capacity as indicated in the Bristol Pathfinder scheme. Likewise, the Planning Inspectorate occupy a large single building of 120,000 sq ft at Temple Quay House, some of which is currently sub-let to other Government agencies under various MOTO agreements. The building has capacity to accommodate additional occupancy, or potential for early disposal which would save circa £3M pa. There are several commercial requirements currently in the market including AXA, although their 70,000 sq ft city centre requirement is currently on hold, Veale Wasbrough Vizards, who have a lease expiry in 3 years, but are out in the market now for 35,000 sq ft in the city centre, and Crestan Group, a travel company seeking 25,000 sq ft to amalgamate several offices. Savills specialist Lease Consultancy team in the South West consists of 3 Directors, based in Bristol. They work closely with our agency team on a day-to-day basis to deliver value through the negotiation process. Clients include Burges Salmon at Narrow Quay, Bristol, comprising 75,000 sq ft where they have successfully provided advice in respect of all rent reviews, short Licences and Lease Renewals both within and outside the 1954 Landlord & Tenant Act security of tenure provisions. In 2010, they successfully completed the surrender of all Burges Salmon’s leases at Narrow Quay with Standard Life Investments, and worked in conjunction with their agency colleagues ensuring the successful relocation of Burges Salmon to Temple Back, Bristol providing in excess of 120,000 sq ft corporate Head quarters.

South and East Savills South and East Office Agency Team comprises 7 professionals with a combine property experience of 85 years. We have a diverse range of clients including local authorities, housing associations, universities, property companies, institutional investors, developers and corporate occupiers. The team compliments Savills West End and City agency teams, who cover central London, and many of whom have been involved with our instruction on the GPU pilot scheme in London.

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Throughout the South and East of the country, we provide advice on property disposal, acquisition, occupational strategy, development and investment. Outside the centre of the capital, we currently have over 70 individual disposal instructions totalling 2.6 million sq ft of existing stock and 6.8 million sq ft of development stock / pre-let schemes. Over the last 18 months we have transacted over 1.8 million sq ft of space giving us a 30% market share. The team has extensive market knowledge and expertise in all major southeast commercial centres. This includes detailed knowledge of supply and demand dynamics, together with the main buildings and occupiers within each centre. We maintain a comprehensive database of transactions and lease events covering all commercial centres within the region dating back more than 20 years. We have particular experience in towns such as Croydon, where the Home Office / UKBA have a large amount of space in various buildings (circa 500,000 sq ft), Reading, Oxford and Watford to name a few. As an example of the team’s experience, Savills was appointed by Norwich Union (now Aviva) to advise upon the disposal of its surplus office portfolio totaling 150 sites and more than 200 leases, across the UK resultant from various mergers. Our appointment was to take over full responsibility to manage the properties, create and implement disposal strategies, advise on rent reviews, dilapidations, lease renewals and manage all financial and audit reporting obligations. Within 18 months, approximately 20 of the largest liabilities were disposed of, totalling more than 350,000 sq ft. Savills successfully delivered to Norwich Union an annual rental saving of £10,000,000 and an FRS 12 future liability saving of more than £32,000,000. In addition, Savills was appointed by major international company operating in the defence and education sectors to advise upon a UK wide occupational property strategy covering 2.5 million sq ft in 250 properties. The purpose of the strategy was to rationalize the portfolio, dispose of surplus space and advise on occupancy standards and best practice. The instruction involved members of our agency, lease advisory, building consultancy, planning and development teams.

(iv) Agency and cost mitigation advice

This service will require a joined up approach between our agency teams and our building and cost consultancy specialists. The result will be accurate advice to the GPU teams in each region as to the marketability and potential value of assets, and the cost implications of taking them to market.

North West In terms of cost mitigation, the Manchester based Building Consultancy team comprises 10 Chartered Surveyors and three support staff. The team is split broadly into two specialist groups, one focussing on the offices sector and the other dealing with Industrial, Retail and general professional work. Within both the Office and Industrial sectors, the team has significant experience acting on behalf of Freehold and Leasehold occupiers and also on behalf of Landlords. The Savills team undertakes significant projects across the North West and beyond, with substantial recent and current projects in Manchester, Liverpool and Preston and with many other projects throughout the region. The primary focus is on existing property

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and within this sphere the team has developed a strong focus on the identification of sustainable and cost effective long term refurbishment solutions with an emphasis on the effective interrogation of dated services. They have considerable experience of Listed property and the team has a strong costing capability which is further supported by a quantity surveying team based in Savills Liverpool office. As an example, Savills undertook a detailed costed feasibility study in relation to No.1 Tithebarn House, Liverpool, on behalf of Legal and General, as part of the acquisition survey of this 110,000sqft city centre office building. The building dated from the early 1970's and many of the services installations were existing. Following purchase by L&G, Savills acted as Contract Administrator and Lead Designer, implementing a £4.8 million refurbishment scheme whilst the building remained 50% occupied. Key to the approach was the detailed understanding of shortfalls in the performance of the mechanical services and where the building's performance has now been brought up to modern standards, without the need for wholesale replacement. The design included the lowering of the reception to pavement level to provide full accessibility. Savills North West agency team comprises 6 fee earners with over 78 years combined property experience in the region. Our clients include local authorities, housing associations, major corporate occupiers as well as private and institutional Landlords. In 2011 the Savills North West Office was awarded “The Best Regional Property Advisor” by the Estates Gazette, as voted for by the North West business community, and in 2010 we received the award for the “Best Office Agency Team” at the Insider property awards. The team is well suited to meet the agency demands of the GPU in the region, and is fully immersed in the local market. The large Government occupiers that currently operate in Greater Manchester area include The Benefits Agency, British Council, Customs and Excise, Employment Service/Tribunal, Probation Service, Inland Revenue, The Insolvency Service, DWP, Valuation Office, NHS North West, Government Office North West, Department of Transport. Over the last 2 years there has been an effort to centralise some of the Government Departments into buildings were the Government has long term commitments. This led to the refurbishment and re-occupation of Piccadilly Gateway by various departments. Large Government premises of particular note in Manchester are Albert Bridge House, which comprises 120,000 sq ft and is occupied by and HM Revenue and Customs, and Piccadilly Gateway owned by the British Rail Board which has Government leases of 13 years remaining at a passing rent of £2.87m pa. Savills track record in the area is very strong, and we work regularly with our building consultancy, planning and development teams. Savills advised UBS (and later Max properties) on the revitalisation of Concord Business Park which was a failing 80’s business park. The estate comprised 5 self contained office buildings totalling some 125,000 sq ft. As a result of the project management work undertaken by Savills building surveying team and the marketing initiatives put in to place by the agency teams substantial lettings have been achieved to Shell UK, SERCO and Thyssen Krupp. Savills have advised on master planning and marketing of development and disposal of Number 1 First Street. A short term letting until May 2013 of 140,000 sq ft was agreed with Manchester City Council for the temporary relocation of the town hall. The council are now prepared to prematurely hand back floors to the landlord on demand as new tenants are identified for the building.

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North East In terms of cost mitigation, Savills Northern region Building Surveying Team of 12 qualified building surveying staff plus support staff is based in Leeds, and covers Sheffield and Newcastle, as well as working closely with our Manchester department. The team advises on aspects of building surveying but particularly focus on project based work. Savills in house team specialise in space planning, pre-acquisition surveys, dilapidations, new build project management and design and refurbishment of all types of commercial property. Members of the Savills team were involved in the re-clad of the 200,000sq ft Central House in Harrogate, at a contract value £2.4m. All works were undertaken and completed whilst the building remained fully occupied. We acted as Employers Agent and cost consultant, exploring cost options and the implications on tenants. The outcome saw retention of the curtain walling frame, following recladding, and we then installed new double glazed units and spandrel panels. The team is also employed by Land Securities in relation to the Northern Region. We are currently working on two shopping centres in Liverpool where we deal with everything from replacing old external fire escapes, re-flooring the malls, dilapidations and refurbishing units for reletting. We also act as contract administrator, which involves procuring, monitoring, certifying and valuing works as they proceed. Savills Agency department in the region is based in Leeds, and has over 35 years of experience in the Yorkshire and Northern region office market, including in Newcastle. The team has advised many occupiers on relocations in both the public and private sector. We are currently aware of several Grade A requirements in the Leeds market including Leeds City council (120,000 ft² currently on hold), Walker Morris Solicitors (90,000 ft²), N Power (120,000ft²), Gaz de France (35,000 ft²) and Hammonds (50,000 ft²), and in Newcastle including The Newcastle Building Society (35,000 ft²), Ernst and Young, Dickinson Dees (15,000 ft²), B Sky B (60,000 ft²) and NHS, albeit currently under review. This knowledge will put us in a good position in terms of considering options for reuse of current Government space.

Our current contracts include providing full portfolio restructure over a 3 year period (mainly acquisition and lease consultancy work). The team is currently 12 months into this contract and has acquired over 13 service centres and 3 regional headquarters to date. This project has been co-ordinated from Leeds, but stretches across the region. The Leeds Agency department is managing this national restructure and overseeing all acquisitions ranging from 3,500 sq ft up to 15,000 sq ft. The acquisition process has required us to conduct market searches and report on assets in various UK cities including Blackpool, Hull, Bradford and Leeds. In addition, the services have included negotiating terms such as rents and incentives which can be achieved in the various locations, and working towards a specific timescale that the NSPCC have in place over the next 2.5 years. Savills also sold City House 110,000 ft² to Bruntwood in 2010. The team is currently providing agency and development advice in order to bring the building back to a marketable state. This involves specification advice, access / egress advice, floor splits, and preferred M & E.

Midlands Savills Birmingham Building Consultancy team comprises 5 Chartered Building Surveyors and two trainees. The majority of qualified staff originate in Building Surveying practices, which complements the multi-disciplinary nature of Savills. Team members do not restrict themselves to particular aspects of Building Surveying, and at any one time each member will have a diverse range of instructions covering different property sectors and types of

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instructions, including refurbishment and extension projects, dilapidations and pre- acquisition surveys. Specialisms held within the team include Architectural Conservation and Environmental Assessment. The team work throughout the greater Midlands area and, as part of the national service line, work more widely, including assisting the London team with the initial GPU instruction in London. As examples of the team’s work, current instructions include the refurbishment and fit-out of an office in Coventry, an extension to an office at University of Warwick Science Park, the demolition and decontamination of a 65 acre former car factory site in Birmingham and the assessment of a national property portfolio to establish its suitability for fitment of PV arrays. Savills Birmingham office agency capability is underlined by calibre of current client and instruction base. In Birmingham City Centre the team are advising, leading UK property company British Land on 103 Colmore Row and 284,000 sq ft office scheme situated in a 100 % pitch close to St Philips Square. Similarly they re are retained by German fund CRI regarding the letting of remaining space in One Snowhill existing occupiers include Barclays Bank and leading accountancy practice KPMG, the building is considered one of Birmingham’s flagship office schemes. Other notable City centre clients include Henderson, Catalyst Capital, Axa Insurance and Quintain Estates. Demonstrating a comprehensive knowledge and experience in wider Midlands market, Savills are retained on leading business Park Schemes including Blythe Valley Park (by Liberty Property Trust/Doughty Hanson); a 200 acre park with occupiers include Oracle, Ove Arup, Siemens and Kier Group at junction 4 of the M42, and Whitley Business Park, Coventry (by St Modwen), a 90 acre park occupiers include Jaguar Landrover. The Savills team is also active in providing balanced advice the Birmingham Office to numerous corporate occupiers on all aspects of office occupation. Notable clients include Yell, Lafarge, lawyers Anthony Collins and Brit Assurance. Despite challenging market conditions Savills Birmingham office agency team have enjoyed a number of notable recent successes including 26,000 sq ft sale of self contained office to Construction Company the Kier Group and a further 25,000 sq ft sale of new build offices in Coventry to Jaguar Landrover. Co-stars recent survey saw the team placed second within Birmingham for corporate acquisition work. The team have reviewed principal Government occupations in the city. For example, the Home Office space at Hill Street, Victoria Square is currently over-rented for a secondary location on edge of CBD, and it is worth exploring a lease regear option, if this is not already underway. There might also be a refurbishment and lease regear or rent erosion deal to be done on the Immigration Service space at Sandfor House in Solihull, as the building is dated and in need of refurbishment.

South West Savills Bristol Building Consultancy team comprises 3 fee earners with a combined property experience of over 80 years. We cover Bristol, South Wales and the South West and have a range of instructions in various locations including Bristol, Taunton and Plymouth. The team has a diverse range of clients including public sector, property companies, institutional investors, developers and corporate occupiers. We provide design, development and feasibility advice to developers, owner occupiers and tenants. We also deal with dilapidations, condition schedules and fabric surveys. Our national resource is

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available to provide specialist input on rights of light, service charges, party walls and capital allowances. As an example, Savills provided initial feasibility and design advice for the conversion of existing steel portal frame office buildings at Briarland Office Park, Thornbury into high quality office accommodation. Upon obtaining planning permission we provided project management to oversee the development of 30,000 sq ft of offices on the site, subsequently fully let to a range of local and national tenants. Savills Bristol office agency team comprises 3 fee earners with a combined property experience of over 30 years. The team covers Bristol and the South West and has a range of instructions in various locations including Bristol, Cheltenham, Swindon, Taunton and Plymouth. We have a diverse range of clients including public sector, property companies, institutional investors, developers and corporate occupiers. Savills provides advice on property disposal, acquisition, occupational strategy, development and investment, and currently have some 50 individual disposal instructions amounting to circa 256,000 sq ft across the region, with a further 500,000 sq ft in the development pipeline. The team has a significant track record in the local market. As an example, Savills Bristol was instructed to acquire a new HQ office building at One Glass Wharf, Bristol for Burges Salmon solicitors. The instruction included advising on procurement strategy, identification of a long list of site within 10 minutes walk of Temple Meads station, assimilating the long list into a shortlist of 4 sites. The team was engaged in producing a detailed request for proposal document and design brief for the requirement, carrying out a marketing exercise to secure the most competitive offers from the 4 shortlisted developers. We negotiated heads of terms for the leasehold interest, and advised the client on the selection of One Glass Wharf as the preferred site to acquire 175,000 sq ft as their new Bristol HQ. The project involved office agency, development consultancy, and investment teams and required liaison between the Bristol and London offices. Similarly, acting for the GPU on the Bristol pilot scheme, Savills Bristol has worked closely with the GPU regional office to review the Bristol and Bath Government Estate comprising some 2.8M sq ft. With input and advice from building consultancy, rating consultancy and the landlord and tenant team, we have reviewed the key holdings to identify the core estate and potential early exits in order to achieve savings in the rental budget. Using input from the building consultancy and planning teams we have reviewed the Burghill Road site, to examine the feasibility of creating a Government campus on this long leasehold site in the NW of the city. We have undertaken initial capacity assessments on the whole Government estate in order to identify surplus capacity within individual buildings, and opportunities to increase density of occupation by encouraging sharing of space between Departments. There are several commercial requirements currently in the market including AXA, although their 70,000 sq ft city centre requirement is currently on hold, Veale Wasbrough Vizards, who have a lease expiry in 3 years, but are out in the market now for 35,000 sq ft in the city centre, and Crestan Group, a travel company seeking 25,000 sq ft to amalgamate several offices.

South and East Savills London and South East Building surveying team consists of specialists in advising on office space planning, refurbishment/fit out design and managing relocations and office

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construction projects. We have built an enviable and substantial track record within the workplace market, acting for a wide range of office occupiers. Our staff cover all disciplines required by GPU including Building Surveyors, Chartered Project managers and Quantity Surveyors with a compliment of over 50 staff in London and the South East of England. A number of our team are leading industry experts in their disciplines including office space planning and dilapidation matters and can advise on lease end or break clause strategies. We are currently advising GPU on refurbishment and exit options at 36 Whitehall and 1 Palace Street, London. Similar to our role in Bristol outlined above, Savills building consultancy team in London are currently assessing the space utilisation and space planning options for 36 Whitehall, London on behalf of GPU. A full team of mechanical, electrical and structural engineers are appointed together with Breeam assessor and cost advisors to show the current and achievable capacity and the cost implications of these options. In addition, the team has advised numerous clients in the South East regarding their occupancy requirements, dilapidations advice and property exit strategies including management of the office relocation and fit out process. Examples include Murco Petroleum from their dated offices in Finchley to new efficient offices in St Albans (23,000 sq ft) where their dilapidation liability was substantially reduced and were able to move to smaller accommodation. We also advised Zurich Insurance on their space utilisation and requirements relocating staff from five locations to new office premises amounting to over 15,000sq.m in Farnborough and Fareham. Paradigm Housing were also advised on their use of space at their existing offices in High Wycombe and assessments made on a number of property options. Paradigm relocated to new offices at Woburn Green near High Wycombe following the sale of their existing office. Savills South and East Office Agency Team comprises 7 professionals with a combine property experience of 85 years. We have a diverse range of clients including local authorities, housing associations, universities, property companies, institutional investors, developers and corporate occupiers. The team compliments Savills West End and City agency teams, who cover central London, and many of whom have been involved with our instruction on the GPU pilot scheme in London. Throughout the South and East of the country, we provide advice on property disposal, acquisition, occupational strategy, development and investment. Outside the centre of the capital, we currently have over 70 individual disposal instructions totalling 2.6 million sq ft of existing stock and 6.8 million sq ft of development stock / pre-let schemes. Over the last 18 months we have transacted over 1.8 million sq ft of space giving us a 30% market share. The team has extensive market knowledge and expertise in all major southeast commercial centres. This includes detailed knowledge of supply and demand dynamics, together with the main buildings and occupiers within each centre. We maintain a comprehensive database of transactions and lease events covering all commercial centres within the region dating back more than 20 years. We have particular experience in towns such as Croydon, where the Home Office / UKBA have a large amount of space in various buildings (circa 500,000 sq ft), Reading, Oxford and Watford to name a few. As an example of the team’s experience, Savills was appointed by Norwich Union (now Aviva) to advise upon the disposal of its surplus office portfolio totalling 150 sites and more than 200 leases, across the UK resultant from various mergers. Our appointment was to take over full responsibility to manage the properties, create and implement disposal

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strategies, advise on rent reviews, dilapidations, lease renewals and manage all financial and audit reporting obligations. Within 18 months, approximately 20 of the largest liabilities were disposed of, totalling more than 350,000 sq ft. Savills successfully delivered to Norwich Union an annual rental saving of £10,000,000 and an FRS 12 future liability saving of more than £32,000,000. In addition, Savills was appointed by major international company operating in the defence and education sectors to advise upon a UK wide occupational property strategy covering 2.5 million sq ft in 250 properties. The purpose of the strategy was to rationalize the portfolio, dispose of surplus space and advise on occupancy standards and best practice. The instruction involved members of our agency, lease advisory, building consultancy, planning and development teams.

(v) Town planning and redevelopment opportunities

We have focused our response to this section principally on town planning credentials however clearly there will be overlap with our development viability experts, in terms of the advice that we provide, and we have provided details of our expertise in this regard in our response to (vi) below. Savills strength in planning and development is a key feature of our proposal, and the expertise and resources that we can provide will be paramount to delivering accelerated exits for GPU by demonstrating value enhancement options for landlords.

North West The Manchester Planning Team is led by Jeremy Hinds, a Director of Savills Commercial Ltd. Jeremy runs a team of 15 professional staff, closely assisted by Trevor Adey and Tim Price, both Associate Directors. The team works closely with other divisions in Savills, particularly the investment, agency and asset management teams, and so has dealings with many aspects of the commercial property industry. The team advises developers, landlords, operators and financial institutions on a varied development portfolio on sites across the North West and the UK. The team is currently advising on major schemes in Sefton and Cheshire East where residential-led mixed use developments are being promoted. Savills Manchester office is currently advising Flintshire County Council on the regeneration and redevelopment of Buckley Town Centre. Our advice has included providing property market and development advice, valuation and development appraisals to support the creation of a master plan for the town centre, land assembly and the procurement of a development partner. WE are also advising LPC Living in relation to the Ordsall Estate, a deprived area of Salford predominantly in local authority ownership. LPC Living has signed a Development Framework Agreement with Salford City Council to regenerate the whole of Ordsall. Over the next five years over 1,000 new family homes will be built along with a new primary school, a new health and community centre, a new supermarket and district centre and improved infrastructure. Savills is assisting LPC Living in this venture, most recently securing planning permission for a retail and residential led redevelopment of the former Radclyffe Primary School site. The Manchester Planning Team successfully guided this major scheme through the planning process, working in close partnership with Salford Urban Vision (an arms length

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company set up by Salford City Council to deliver its development control function and other services) and other Council departments.

North East The ten-strong Northern planning team includes eight chartered planners who are currently acting for a diverse range of clients in both the public and private sectors. Clients include developers and house builders; retailers; healthcare providers; education providers; energy and utility companies; and public sector organisations. The team provides advice on a wide range of development proposals for urban and rural projects; large or small. Services include the preparation of planning applications; planning appeals and expert witness; strategic land promotion; retail studies; master planning; and planning obligation negotiations. The planning team works closely with colleagues in other disciplines, such as the rural, commercial and research teams. This ensures that the planning advice we provide is complemented by up to date market knowledge. We regularly co-ordinate the work of technical consultants to assist in the promotion of planning projects. In terms of specific case studies, Savills is currently instructed by MEPC in respect of the redevelopment of 6.8 hectares of land at Wellington Place in Leeds City Centre. Working as part of a multi-disciplinary team on one of the largest redevelopment sites in the city, outline planning permission for an office-led mixed-use development comprising over 300,000 sq m of floorspace was secured in March 2008. Since then, Savills have also obtained a number of reserved matters consents for individual plots of the development. The team has also recently secured planning permission on behalf of Barwood Land & Estates for a residential-led sustainable urban addition to Raunds in Northamptonshire. This included 310 homes, a care homes, and 20,000ft2 of employment uses. It was recommended for approval by East Northants Borough Council, refused by members, and approved by the Secretary of State following a recovered appeal.

Midlands Savills planning team for the Midlands region is based in Birmingham and comprises two Directors, an Associate and Planner with combined professional experience in excess of 57 years. The team covers the whole of the Midlands and has particular strengths in Birmingham, the Black Country and Coventry where the majority of the public sector assets are located, particularly key office properties and Central Government assets. We also have a Nottingham Planning team comprising a Director and Senior Planner with combined experience of more than 20 years focused on the East Midlands, with particular expertise in Nottingham, Derby and Leicester. The Midlands Planning team has advised on all aspects of planning for commercial and residential property in urban and rural locations. This has included securing outline planning permission for Advantage West Midlands (RDA) for a 100,000 sq m office and R&D park on 40Ha of Green Belt, and outline and detailed permissions for 55,000 sq m of grade A office space for a commercial developer in central Birmingham. With endorsement by the Learning and Skills Council, the team has extensive experience of advising public sector education clients, with regard to property strategies and successful implementation of those strategies across the Midlands resulting in the successful delivery of new education buildings in locations including: Birmingham, Walsall, Sandwell, Nottingham, Leicester, Nuneaton and Hinckley. The Planning team has also worked on

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behalf of the Homes and Communities Agency on strategic projects to identify priority areas for investment. Savills has provided strategic and detailed town planning advice to Birmingham City University with regard to its estates strategy since 2003 alongside our Development and Professional colleagues. Our role has included preparing planning briefs which were endorsed by the local planning authority in respect of surplus sites to inform the disposal process and to support the achievement of best value. This has included a site for a tall building in Birmingham City Centre, a listed former monastic college, and a former hall of residence that enabled a strategic regeneration opportunity to be assembled. Planning advice has been provided to inform both site disposal and site acquisition contracts. Outline and full planning permissions have been secured for new buildings to create a new campus within a major regeneration area. Planning advice has been provided to secure highways stopping-up to enable development and we have advised on matters of detailed interface with neighbouring third party developments to protect University freehold and leasehold interests. Similarly, Savills provided a complete planning service to City College, Coventry, to manage the relocation of the College from 3 separate sites to a single new site. We determined the planning strategy, identified the optimal relocation site and worked with agency colleagues to secure the acquisition of the new site and disposal of all existing sites. We made representations in respect of the Development Plan and Supplementary Planning Guidance documents to pave the way for new development and secured outline and detailed planning permissions for a multi-phased new campus development. We prepared informal planning briefs to support the disposal process and monitored purchasers through their planning conditionality. When one purchaser defaulted on their contract, we provided planning Expert evidence to the arbitration process leading to successful completion of the sale. The project was successfully concluded on time and to budget.

South West Our planning team in Bristol acts for a diverse range of clients in both the public and private sectors throughout the South West and Wales. The Bristol Planning Team comprises seven planners, with a further ... in Exeter. We are involved in all forms of land uses across the region including foodstore and retail-led mixed used town centre regeneration schemes, such as Millbay, Hereford Livestock Market, and large scale regeneration schemes including Ebbw Vale Steelworks and Coed Darcy Urban Village. The Team has also advised the HCA in respect of the Hanham Hall residential development and the Gloscat Campus in Gloucester, and the Cornwall PCT and Community 1st Cornwall in respect of the redevelopment of St Lawrence’s Hospital, Bodmin. We provide planning advice on a wide range of development proposals on brownfield and greenfield sites. This includes major mixed use projects in towns and cities, together with smaller proposals in rural areas. The Planning team works closely with Savills Development and Commercial colleagues to provide co-ordinated and practical planning solutions that deliver enhanced value and viable development opportunities, and which are complemented by up to date commercial market knowledge. This has included providing advice to SWRDA, HCA and NHS Estates with a view to maximising the value of existing land and property assets in order to achieve their disposal or the delivery of regeneration projects, often in partnership with the private sector. Our Environmental Impact

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Assessment team can prepare environmental statements which are now an essential part of all major new development proposals. We are aware of many public sector occupied or owned sites in the region. Of particular interest are the assets transferred from SWRDA to the HCA. These include land at Temple Quay where we have advised SWRDA and in Taunton (Firepool) where we are advising the Council and Project Taunton. Clearly other Government Departments have significant assets in the region. These include prime properties such as the TA on Whiteladies Road, Bristol and also significant tracts of land owned by the MOD with strategic potential.

South and East Savills South East Planning team consists of 86 professionals across London, Wimborne, Southampton, Guildford and Sevenoaks. We also work closely with our 11-storng team in Oxford, and our 8 professionals in Cambridge. The team is part of one of the largest and most experienced planning practices in the UK with over 150 professional staff. We work with Local Authorities, developers, landowners, funders, Government agencies, educational institutions and other professional bodies in order to maximise the potential of projects, exceed client demands and deliver exemplary results. We have fifty professional staff based in London (offices in the West End and the City) with more planning staff in offices in Oxford, Wimbourne, Southampton and Sevenoaks. We have a broad range of professional expertise and a wide range of project experience across London and the South East. We are involved in some of London’s most prestigious projects and have excellent relationships with the London Boroughs and the GLA, plus Councils across the south east of England. Our approach is to provide hands-on, Director- led advice, drawing on a senior team from a wide range of backgrounds (many from London Boroughs with high level connections). For these reasons we believe we are well placed to listen to GPU’s aspirations and deliver results that maximise the potential of GPU’s assets going forward. In terms of specific project experience, Savills was a key member of the consultant team (appointed by competitive tender) to help the GLA prepare an Opportunity Area Planning Framework for Waterloo. Key features included a new city square, public realm improvements, redevelopment of the station and tall buildings above and around the station. Savills Planning and National Development teams are now working on behalf of Network Rail to prepare a Planning Brief and Development Framework for the redevelopment of Waterloo Station. Savills also provided specialist advice whilst acting for Wycombe District Council on a key strategic site at Handy Cross, Wycombe. The team achieved a resolution to grant permission from the Planning Committee for the development of a new regional coachway, hotel and 33,000 sq m of business development. The team’s expertise established a sound economic case for out of town office development, which included the preparation of an impact assessment and a full sequential test to underpin the client’s development aspirations.

(vi) Development appraisal valuations

Development consultancy, including valuation and agency, is a core strength of Savills throughout the UK. Our specialist teams advise locally and nationally on the full scope of

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services, and in conjunction with our planning colleagues, provide a ‘cradle to grave’ service for our public and private sector clients. These services include viability appraisals, assessment of revenue and sales projections, construction costs, site-specific risks, competing sales and cash flow analysis. We also provide expert advice on land assembly, including sites in multi-ownership; strategic development; identifying development potential; promoting strategic development; joint venture vehicles and option agreements; and the negotiation and selection of partners on the most favourable terms for clients. We have outlined below our specific regional capabilities and experience.

North West Savills has a 12-strong Development and Valuation team based in its Manchester office and covering the North West. The team deals with all aspects commercial and residential development and valuation and also has specialisms in hotels & leisure and healthcare. The team provides advice to a range of clients including developers and house builders; retailers; leisure operators; healthcare providers; education providers; and public sector organisations. Services include land and property agency (sales and acquisitions; valuations; development appraisals; land assembly; option agreements development consultancy; joint venture structuring; developer procurement; and development funding and financing advice. The team is also currently advising the Royal Institution of British Architects (RIBA) on the development of an international architecture centre in Liverpool. Our advice has included assessing the feasibility of a number of options for the RIBA including extensive financial viability testing on the £10m conversion of a Grade 2* listed building and various new build options with a GDV of £12-20m.

North East Savills North East Development and Valuation team is headed by Matthew Jones and consists of a team of 4 surveyors providing both commercial and residential development valuation advice. Our range of specialism’s in the commercial sector cover all the principal asset classes, including offices, retail, industrial, leisure and hotels. Our residential valuation team provides a comprehensive service assisting a wide range of clients covering the asset classes including residential, residential development, residential investment and agriculture. We advise a number of public bodies including the HCA on a number of projects in the area and Tees Valley District Council on their proposed enterprise zone and York City Council on their proposed new community stadium. In terms of specific project experience, the team acted for the HCA in providing appraisal and valuation advice with regard to the redevelopment of Grove Hill, Middlesbrough. The project involved a critical assessment of Barratt’s proposed scheme of 700+ units, developing and appraising options for the Eastbourne Road local centre, the development of a financial model which helped to inform the scale, nature and timing of public sector investment. In addition, we are instructed by Places for People to provide Development Consultancy advice for the redevelopment of Smith’s Dock, North Shields, on the northern banks of the River Tyne in Newcastle. The site was purchased with planning permission for in excess of 1,000 apartments and 280 houses in 1997. Our advice was sought to provide strategic consultancy advice on the redesigning and development of the subject scheme, in addition

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to providing valuation viability and Section 106 negotiation advice. The site extends to some 30 acres with extensive frontage onto the River Tyne.

Midlands Savills development and valuation services for the Midlands are provided out of the multi- disciplinary team in Birmingham. The team consists of 11 development consultancy specialists, who work closely with planning, agency and investment teams, as well as development colleagues in other Savills offices, such as the 6-man team in Oxford, to provide coordinated advice to ensure that is both grounded in market reality and within the scope of the achievable in planning terms. We provide strategic advice, on this basis, to a number of clients in both the public and private sectors. Public sector clients include the Housing and Communities Agency to whom we have provided strategic economic, planning and investment advice, and Stoke City Council whom we advise on the delivery of a major new office quarter and, more particularly, on the rationalisation of their estate and the relocation to new offices, providing the supporting business case for doing so. The team’s project specific experience includes working with Stoke City Council to provide viability appraisals to assess funding requirements and identify any funding gaps. Specific development appraisals have been undertaken to support business case for relocation of the Council's offices and to determine developer return. We have also been retained to review alternative uses and values for principal asset that is to be vacated. Similarly, we have worked for many years with Birmingham City University. The have provided advice with respect to the future use and potential relocation of the Conservatoire, a specialist but out-dated 12,000 sq m facility forming part of the proposed redevelopment of Paradise Circus within Birmingham city centre. Our role has included analysis of alternative uses and options for redevelopment on a sole and comprehensive basis, consideration of relocation options and costs, and advice on CPO route to establishing best value.

South West Savills South West development team is based in Bristol, and consists of 8 professionals, and is complimented by a further 5 in Exeter. The team’s core activities include the sale and purchase of consented and strategic development land, valuations for all purposes as well as development consultancy, land assembly and regeneration advice. The Savills team also uses its expertise to advise on a much wider range of issues facing landowners developers and commercial operators. Our experience of mixed development schemes – combined with the specific skills involved in residential, leisure, retail and commercial development – puts the Savills team at the leading edge of development consultancy in Bristol, the South West and South Wales. In terms of project specific examples, Savills was appointed to act for English Partnerships in the disposal of Hanham Hall, chosen as the first Carbon Challenge site in the UK. Savills worked closely with EP regarding the development brief for the site and advised on an appropriate marketing strategy; the disposal had a particularly high profile given the objective to deliver housing to comply with Level 6 of the Code with Sustainable Homes. The disposal took place under the OJEU process with Savills handling enquiries from across the UK and Europe. On receipt of bids, Savills were responsible for analysing the development appraisals submitted and drafting a formal disposal report and valuation,

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including detailed development valuation appraisals. The site was sold to Barratt Homes who are now in the construction process. Savills was one of two property consultants appointed by the HCA in the South West region to undertake due diligence on bids for ‘Kick-Start’, the initiative to provide funding re-start development on previously ‘stalled’ sites. The role included analysing revenues, construction costs, delivery timetables and land values in order to assess scheme viability and the need for gap funding. A report was submitted to the HCA summarising scheme viability, deliverability, value for money, level of funding required and key areas of risk. Savills negotiated on behalf of the HCA with bidders to agree the terms and level of funding; in many cases Savills were able to secure improved terms for the HCA.

South and East Savills London and South East development team is based principally in Savills London head offices. It consists of 20 professional staff based in the capital, together with 46 development and valuation surveyors across Southampton, Sevenoaks, Guildford, Oxford and Cambridge. In terms of development consultancy and appraisal, the team is able to advise on projects from inception, advising on land assembly, value, acquisition and viability, through planning to delivery, across a wide spectrum of development. Our ability to commit specialist resources enables us to assist clients in the creation of viable mixed use and commercially-led schemes with long term value, driven by our approach to place-making and sustainability. Projects often also require political and socioeconomic analysis, and community and stakeholder engagement. We are able to lead on these elements as well as working with specialist consultants. Savills has a comprehensive understanding of the structuring and delivery of public and private sector funding. Our teams are skilled in project valuation appraisal, modelling and sensitivity and the establishment of viable schemes. We have a detailed knowledge of grant, gap and equity funding and are able to shape proposals to work within the constraints of public finance. We are able to match this with a full appreciation of the requirements of banks and equity investors. Similarly, our teams are experts in the acquisition and disposal of sites, whether small, residential plots, to major strategic land deals, and high value city centre sites. Not only does this involve detailed understanding of the development process and values generated, but also expert knowledge of the major developers and funders in the relevant market place. Our coverage includes London as well as regional centres and towns in the region, such as Reading, where we are currently advising on four sites ranging from a major new science park development, to a 300-unit residential scheme, and a town centre mixed use development. As an illustration of projects with which we are involved, Savills is currently advising Network Rail regarding the redevelopment of Waterloo Interchange and the selection of a developer partner. The scheme will include air rights development and comprise a mix of uses including office, hotel and residential and has the capacity for circa 4 million sq ft of accommodation. Savills has been providing development consultancy advice and working with Network Rail, Savills Planning and a number of engineers and consultants towards a practical solution for the transport element which allows significant commercial and residential development above and around the Station.

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Similarly, Savills were instructed by SEEDA and Portsmouth City Council in relation to the regeneration of Tipner, Port Solent and Hornsea Island. Savills act as planning consultants, master planners and development consultants for production of high level concept statements to support the LDF, which involved comprehensive viability appraisals, detailed market research and the design of a ten year financial cash flow model including high level assessment of the extensive infrastructure needs.

(vii) Business case advice and support

Our understanding of the GPU requirement in this area is support for the in-house team in the preparation of strategy documents that are required for Cabinet Office and Treasury approval. In the Bristol and London pilot projects, this consisted of inputting value and cost assumptions for the Pathfinder document. In the event that we are successful, we anticipate a similar role under this contract, in advance of the provisional October deadline for agreement of regional strategies. Our advice will be founded in the accelerated exit strategy, agency option and cost mitigation work that will be undertaken at the outset. It will involve providing inputs to the GPU modeling function. The validity of conclusions drawn will therefore be dependent on the quality of the data that we provide at the outset. Savills Assistant Contract Director for this contract, Alex Dawson, has extensive experience in supporting Government Departments and local authorities in the preparation of accommodation strategy reports and business cases. He has advised the Ministry of Justice, Home Office and Ministry of Defence among others on several of their occupied properties and portfolios in central London. Alex also worked with the Ministry of Justice on their accommodation review across 10 regional cities and which identified opportunities to deliver £52million of savings. His advice to local authorities and other public sector bodies has included work throughout the UK, in cities including Portsmouth, Bristol, Westminster, Leeds, Newcastle, Birmingham, Manchester, Hereford and Liverpool. We have also retained the specialist services of Clive Shore, to strengthen further Savills offer in this respect. Clive assisted several Government Departments and Arms Length Bodies with their estates strategies and has produced Treasury Compliant business cases for The Department of Health/Care Quality Commission, The Youth Justice Board, MOJ/HM Courts Service, The Qualification & Curriculum Authority for Schools, The Training & Development Agency for Schools, Ofsted, Standards Board and several local Councils, including Sheffield, Nottingham, Gloucestershire, Plymouth, Suffolk and Tunbridge Wells. As an ex-Partner in the strategy practice at Accenture, Clive also has many years experience providing strategic advice to senior executives in private sector firms, including BG, EdF, National Grid, Transco, Electrabel and Shell. Many of these projects required the development of complex business cases. For the sake of completeness, in terms of our day-to-day corporate real estate advice, Savills is highly experienced in developing estates strategies for its clients, and aligning them with key drivers and requirements of clients’ core business. We employ a dedicated corporate real estate team, who are based in London and Cambridge, which provides strategic consultancy services throughout the UK and overseas, and clients include Anglian Water, BP and Imperial College. The foundation of our advice is understanding the client’s requirements and the organisation’s context surrounding the requirement. Our consultants invest significant time

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in gaining an understanding of a client’s organisation and the issues it faces. Our track record shows that this approach provides real benefit to a client and maximises the fulfilment of requirements. Examples have included formulation of an estates strategy for CB1 in Cambridge, and an investment strategy for Sherford in the West Country, undertaken by our Bristol team. Imperial College occupies some of the most valuable property space in London and competes with the other world ranking universities to attract (and retain) the best students and academics. To do this, Imperial has devised an investment strategy that includes the re-use of its property. Savills has helped to devise this strategy and it implements it on a daily basis. An important part of this work includes advising on the tactics for engagement with the planning system and the implementation of projects across its three main campuses. Savills has recently carried out a strategic review of a major international company operating in the outsourcing, defence and education sectors. This covered a diverse property portfolio of 300 properties across the UK, but centred in London and Bristol. The portfolio of properties included some with restricted access, including top secret classification. The strategic review has identified various opportunities across the portfolio which will lead to annual savings of over £7m or 20% of property costs.

(viii) Agency implementation

Savills has been ranked as the UK’s leading agent by turnover for the last 11 years by property week, and has won several regional awards including Yorkshire commercial property deal of the year 2010, Best Regional Property Advisor as voted for by the North West business community, and in 2010, Best Office Agency Team (North West) at the Insider property awards. We have leading experts in all UK regions and across all the major property sectors, including office, retail, residential, leisure, industrial, healthcare and specislists in the disposal of niche market assets. We have outlined below the expertise and experience of each of our regional teams. We also have the benefit of being able to draw upon our specialist and national auction house. Last year Savills was the second most successful auctioneer of any residential and commercial property auction houses in the UK, during which our total sales amounted to £215 million from 884 lots. The team covers the entire UK and we sell properties ranging in price from £1,000 to £6 million via 8 auctions a year, all of which are held in prestigious central London hotels, but which can be staged elsewhere in the UK. Our average auction success rate in 2011 currently stands at 88%, which is among the best in the business. Auctions can often drive higher prices than via sealed bid and private treaty, and full exposure and best price is guaranteed. An auction sale cuts out buyer procrastination associated with many other sales methods and ensures the property is sold in an impartial open competitive forum without any favouritism or discrimination within a set time scale.

North West Savills North West agency team comprises 6 fee earners with over 78 years combined property experience in the region. Our clients include local authorities, housing associations, major corporate occupiers as well as private and institutional Landlords. In 2011 the Savills North West Office was awarded “The Best Regional Property Advisor” by

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the Estates Gazette, as voted for by the North West business community, and in 2010 we received the award for the “Best Office Agency Team” at the Insider property awards. There are a vast amount of Government property holdings located within the North West and these vary from large city centre offices to small town centre holdings. Savills Lease Consultancy benefits from first hand knowledge on many of these properties. The team is small but experienced benefiting from over 25 years experience in the Northern Markets. Having represented both landlords and tenants on all types of properties throughout the northern regions, the team would be able to provide an invaluable insight and knowledge to the varying properties. The team works very closely with its agency colleagues and represent many of the major landlords and occupiers within the region. Clients in the region include amongst others Axa Real Estate, Threadneedle, AVIVA, Argent, Standard Life, American Express, Lancashire County Council and HSS Hire. In addition within the team previous experience includes asset management, rent reviews, lease renewals , acquisitions and disposals on many of the of the regions Government buildings, including the Regional Head Quarters for the Crown Prosecution Service, Inland Revenue and Customs & Excise. Our experienced team has a valuable insight having previously been one of the main points of contact for the Region on the Inland Revenue and Custom and Excise portfolio prior to PFI transfer and a main asset manager for the North West and Midlands for the CPS for circa 5 years. In addition our team has previously undertaken work on behalf of the DVLA, The Court Service, Job Centre plus and DWP in various properties throughout the North of England. Consequently our team benefits from first hand knowledge of many of these buildings and their associated landlords.

North East Savills Agency department in the region is based in Leeds, and has over 35 years of experience in the Yorkshire and Northern region office market, including in Newcastle. The team has advised many occupiers on relocations in both the public and private sector. The team was awarded Yorkshire commercial property deal of the year 2010 for the investment sale of 1 Whitehall Riverside. We are currently aware of several Grade A requirements in the Leeds market including Leeds City council (120,000 ft² currently on hold), Walker Morris Solicitors (90,000 ft²), N Power (120,000ft²), Gaz de France (35,000 ft²) and Hammonds (50,000 ft²), and in Newcastle including The Newcastle Building Society (35,000 ft²), Ernst and Young, Dickinson Dees (15,000 ft²), B Sky B (60,000 ft²) and NHS, albeit currently under review. This knowledge will put us in a good position in terms of considering options for reuse of current Government space.

Our current contracts include providing full portfolio restructure over a 3 year period (mainly acquisition and lease consultancy work). The team is currently 12 months into this contract and has acquired over 13 service centres and 3 regional headquarters to date. This project has been co-ordinated from Leeds, but stretches across the region. The Leeds Agency department is managing this national restructure and overseeing all acquisitions ranging from 3,500 sq ft up to 15,000 sq ft. The acquisition process has required us to conduct market searches and report on assets in various UK cities including Blackpool, Hull, Bradford and Leeds. In addition, the services have included negotiating terms such as

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rents and incentives which can be achieved in the various locations, and working towards a specific timescale that the NSPCC have in place over the next 2.5 years. Savills also sold City House 110,000 ft² to Bruntwood in 2010. The team is currently providing agency and development advice in order to bring the building back to a marketable state. This involves specification advice, access / egress advice, floor splits, and preferred M & E.

Midlands Savills Birmingham office agency capability is underlined by calibre of current client and instruction base. In Birmingham City Centre the team are advising, leading UK property company British Land on 103 Colmore Row and 284,000 sq ft office scheme situated in a 100 % pitch close to St Philips Square. Similarly they re are retained by German fund CRI regarding the letting of remaining space in One Snowhill existing occupiers include Barclays Bank and leading accountancy practice KPMG, the building is considered one of Birmingham’s flagship office schemes. Other notable City centre clients include Henderson, Catalyst Capital, Axa Insurance and Quintain Estates. Demonstrating a comprehensive knowledge and experience in wider Midlands market, Savills are retained on leading business Park Schemes including Blythe Valley Park (by Liberty Property Trust/Doughty Hanson); a 200 acre park with occupiers include Oracle, Ove Arup, Siemens and Kier Group at junction 4 of the M42, and Whitley Business Park, Coventry (by St Modwen), a 90 acre park occupiers include Jaguar Landrover. The Savills team is also active in providing balanced advice the Birmingham Office to numerous corporate occupiers on all aspects of office occupation. Notable clients include Yell, Lafarge, lawyers Anthony Collins and Brit Assurance. Despite challenging market conditions Savills Birmingham office agency team have enjoyed a number of notable recent successes including 26,000 sq ft sale of self contained office to Construction Company the Kier Group and a further 25,000 sq ft sale of new build offices in Coventry to Jaguar Landrover. Co-stars recent survey saw the team placed second within Birmingham for corporate acquisition work.

South West Savills Bristol office agency team comprises 3 fee earners with a combined property experience of over 30 years. The team covers Bristol and the South West and has a range of instructions in various locations including Bristol, Cheltenham, Swindon, Taunton and Plymouth. We have a diverse range of clients including public sector, property companies, institutional investors, developers and corporate occupiers. Savills provides advice on property disposal, acquisition, occupational strategy, development and investment, and currently have some 50 individual disposal instructions amounting to circa 256,000 sq ft across the region, with a further 500,000 sq ft in the development pipeline. The team has a significant track record in the local market. As an example, Savills Bristol was instructed to acquire a new HQ office building at One Glass Wharf, Bristol for Burges Salmon solicitors. The instruction included advising on procurement strategy, identification of a long list of site within 10 minutes walk of Temple Meads station, assimilating the long list into a shortlist of 4 sites. Producing detailed request for proposal document and design brief for the requirement, carrying out a marketing exercise to secure the most competitive offers from the 4 shortlisted developers. The team was engaged in negotiating heads of

GPU – National Property Services Tender Page 38 Savills Response to Mini-competition Brief

terms for the leasehold interest, and selecting One Glass Wharf as the preferred site to acquire 175,000 sq ft as their new Bristol HQ. The project involved office agency, development consultancy, and investment teams and required liaison between the Bristol and London offices. There are several commercial requirements currently in the market including AXA, although their 70,000 sq ft city centre requirement is currently on hold, Veale Wasbrough Vizards, who have a lease expiry in 3 years, but are out in the market now for 35,000 sq ft in the city centre, and Crestan Group, a travel company seeking 25,000 sq ft to amalgamate several offices.

South and East Savills South and East Office Agency Team comprises 7 professionals with a combine property experience of 85 years. We have a diverse range of clients including local authorities, housing associations, universities, property companies, institutional investors, developers and corporate occupiers. The team compliments Savills West End and City agency teams, who cover central London, and many of whom have been involved with our instruction on the GPU pilot scheme in London. Throughout the South and East of the country, we provide advice on property disposal, acquisition, occupational strategy, development and investment. Outside the centre of the capital, we currently have over 70 individual disposal instructions totalling 2.6 million sq ft of existing stock and 6.8 million sq ft of development stock / pre-let schemes. Over the last 18 months we have transacted over 1.8 million sq ft of space giving us a 30% market share. The team has extensive market knowledge and expertise in all major southeast commercial centres. This includes detailed knowledge of supply and demand dynamics, together with the main buildings and occupiers within each centre. We maintain a comprehensive database of transactions and lease events covering all commercial centres within the region dating back more than 20 years. We have particular experience in towns such as Croydon, where the Home Office / UKBA have a large amount of space in various buildings (circa 500,000 sq ft), Reading, Oxford and Watford to name a few. As an example of the team’s experience, Savills was appointed by Norwich Union (now Aviva) to advise upon the disposal of its surplus office portfolio totalling 150 sites and more than 200 leases, across the UK resultant from various mergers. Our appointment was to take over full responsibility to manage the properties, create and implement disposal strategies, advise on rent reviews, dilapidations, lease renewals and manage all financial and audit reporting obligations. Within 18 months, approximately 20 of the largest liabilities were disposed of, totalling more than 350,000 sq ft. Savills successfully delivered to Norwich Union an annual rental saving of £10,000,000 and an FRS 12 future liability saving of more than £32,000,000. In addition, Savills was appointed by major international company operating in the defence and education sectors to advise upon a UK wide occupational property strategy covering 2.5 million sq ft in 250 properties. The purpose of the strategy was to rationalize the portfolio, dispose of surplus space and advise on occupancy standards and best practice. The instruction involved members of our agency, lease advisory, building consultancy, planning and development teams.

GPU – National Property Services Tender Page 39 Savills Response to Mini-competition Brief

(ix) Other ad hoc property advice

It will be the responsibility of Savills Assistant Contract Director Alex Dawson, to match Savills resources with any additional property requirement issued by GPU. We are confident that we will be able to meet any demand that is forthcoming, however in order to cover all eventualities, we have a robust sub-contractor policy in place in the event that we need to source additional specialisms. Savills is a leading international firm of property services consultants. We have 97 offices and employ about 3,000 people throughout the UK, and 19,000 worldwide. Our strength and depth of coverage within the UK is unique.

Savills provides a full range of property services and has the capacity to undertake any property consultancy commission for public and private sector clients. We have expert resources throughout the country covering all major property sectors, including office, industrial, retail, educational, hotel, leisure, healthcare, residential, development and rural land, across the full gamut of services, including the following:

Acquisition, leasing & disposals (inc. auctions) Sustainability & energy PFI/ PPP, LABVs, PRSI and other JV structures Development & regeneration Town planning & urban design Procurement & outsourcing Valuation & professional advice Rating and TIF Strategic business & management consultancy Portfolio rationalisation & stock transfer Asset management Employer’s agent Building consultancy & project management Space planning & cost consultancy Occupational/ investment portfolio management Research & benchmarking

We provide the above services to corporates, property companies, investors, fund, developers and private individuals, as well as clients in a variety of regulated sectors including central and local Government, utilities, health, education, transport, emergency services, housing, regeneration and energy.

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Question 3: Phasing, key milestones and Governmental support needed

Please see below an indicative project plan below. This is based on the information available and our knowledge of the likely processes involved following our work on the Pilot projects. As a result, the plan is relatively high level. We have identified how we anticipate the project panning out in terms of phasing and key milestones, leading up to the October deadline. It shows the chronological delivery of services from categorisation, through CORE capacity work and SURPLUS options analysis, to preparation of business cases. It is likely that this will evolve over time, in discussion with GPU. We have shown a generic plan to apply to all regions, however there may well be regional divergence in practice, as the project develops. In terms of GPU support, the key aspects will be: - Building access and contact details - Provision and verification of data - Department liaison relating to access, data and cooperation (particularly regarding the divulgence of property strategies and requirements) - Key Government stakeholder liaison throughout project delivery. Thereafter, close cooperation between GPU and consultancy teams will be required to ensure that the data input and modeling function operates smoothly and efficiently. This will enable accurate conclusions to be drawn, and options advice discussed. In order to facilitate this, for the first phase of the project at least, it might be appropriate for us to station a small team on a full time basis within GPU offices in the appropriate regional location.

GPU – National Property Services Tender Page 41 Savills Response to Mini-competition Brief

IDTask Name g '11 05 Sep '11 12 Sep '11 19 Sep '11 26 Sep '11 03 Oct '11 10 Oct '11 17 Oct '11 24 Oct '11 31 Oct '11 07 Nov '11 14 Nov '11 21 Nov '11 W T F S S M T W T F S S M T W T F S S M T W T F S S M T W T F S S M T W T F S S M T W T F S S M T W T F S S M T W T F S S M T W T F S S M T W T F S S M T W T F S S M T W T F S S 1 Stage 1: Scoping and Data Collation

2Workshop and scoping day at Cabinet Office

3Agree key deliverables, risk matrix, reporting lines and timetable; regional Savills team meet regional GPU team

4Collate and review data; identify and fill gaps

5Update meeting: review data collated 26/09

6 Stage 2: Property Categorisation

7Initial high level view of categorisation: CORE / SURPLUS / OTHER

8Review of categorisation CORE / SURPLUS / OTHER

9 Stage 3a: CORE

10Building inspection, analysis of potential utilisation, valuation and planning, option analysis

11Update meeting: estate rationalisation moves analysis (CORE / SURPLUS / OTHER) 03/10

12Further inspections, options analysis, costs, rent, value, planning and development

13 Stage 3b: SURPLUS

14Analysis of accelerated exits, costs, planning, development, disposal

15Update meeting 07/10

16Further analysis

17 Stage 4: Finalisation and Announcements

18Consideration of Business Plan

19Update meeting 14/10

20Further Business Plan inputs

21Announcements 31/10

22 Business Case and Implementation

23Supporting Business Plan / property strategy and other inputs

24Implementation

25 Government Support / Data Gathering

26Data input from GPU and departments

27Update meeting: review data collated 26/09

28Data input, departments liaison

29Stakeholder liaison, commentary and feedback

Task Progress Summary External Tasks Deadline Project: GPU Regional Programme Date: Fri 12/08/11 Split Milestone Project Summary External Milestone

Page 1

SECTION B - Personnel

Question 4: Savills Service Team across the 5 regions

In short, we envisage replicating on a regional basis the team structure and format from the London and Bristol pilot project by putting in place regional teams consisting of experts in each of the work streams identified as required outputs within the brief. However, we will also provide an additional contract management resource, given the additional scope and scale of this project. Our understanding of the GPU approach to this project is that it is to be ‘deal lead’, focusing on accelerated moves and chains of moves, in order to drive savings out of the portfolio. For this reason, we have identified a senior agency Director, based in London, to oversee delivery. Equally important, the Contract Director has been working with GPU over the last six months, and therefore has an in-depth understanding of how the organisation operates. He will maintain a watching brief, and a quality control role, in order to ensure that Savills advice remains in tune with the needs of GPU throughout, and in particular, maintains the ‘agency edge’ required to deliver positive results. He will be assisted by a Assistant Contract Director, whose principal role will include contract administration and resource management, performance monitoring, and reporting to the Contract Director and Savills Internal Steering Committee, and direct to GPU. We propose a scheduled weekly meeting (or sometimes telephone conference call), diarised for the same time and day each week, to discuss the project status. This can be as short (or as long) as is necessary, but it should nevertheless be in the team’s diary from the outset.

Contract Director – Liell Francklin Assistant Contract Director – Alex Dawson

We also propose to maintain Savills Internal Steering Committee, that we set up in advance of the London and Bristol pilots, and which has been maintained throughout our contract. The group’s roles are as follows: • To draw on senior contacts and experience in the consideration of accelerated move options and business case preparation. • To monitor, review and confirm Savills advice to date, and our ongoing methodology and future deliverables. • High level quality assurance service to senior individuals within GPU. • The group will monitor service delivery and will also act as a knowledge hub to drive forward improvements to Savills service to the client, and best practice amongst Savills staff working on the project.

Liell Francklin, Director, Head of Agency Alex Dawson, Director, Savills Public Sector Mark Ridley, Chairman and Chief Executive, Savills Commercial

GPU – National Property Services Tender Page 43 Savills Response to Mini-competition Brief

James Sparrow, Director, Head of Savills Public Sector Theo Williams, Director, Head of Lease Consultancy Oliver Fursdon, Associate, Savills Public Sector/ Development Michael Pillow, Executive Director, Head of Building Consultancy

In terms of service delivery, we have identified regional contract managers who will have day to day responsibility for the regional teams. The table below shows the individuals responsible for leading each service output in each region. CVs are included below, in alphabetical order for ease of reference. We anticipate that there will be regular dialogue between these individuals and the corresponding GPU regional director. It is critical that Savills works very closely with GPU’s central and regional teams from the outset.

Contract Manager (South and East) – Jonathan Gardiner Contract Manager (South West) – Paul Williams Contract Manager (Midlands) – Nick Williams Contract Manager (North West) – Patrick Joynson Contract Manager (North East) – Paul Fairhurst

We have outlined the contract management and delivery structure in the Organogram provided in response to Question 6 below. Curricula vitae for these key individuals are also shown below. Given the potential scale of this project, and the depth of Savills resource, we have not sought to provide details of every individual who may have involvement in the event that we are appointed (although this information can be provided if required).

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GPU Requirement North West North East Midlands South West London/ S. East i) Categorisation Alex Dawson Alex Dawson Alex Dawson Alex Dawson Alex Dawson support Patrick Joynson Paul Fairhurst Nick Williams Paul Williams Jonathan Gardiner ii) Space utilisation and Gary Bulloch Stephen Throp Stephen Morgan Rob Huthwaite Kevin Tuck planning iii) Options advice for Patrick Joynson Paul Fairhurst Nick Williams Paul Williams Jonathan Gardiner accelerated exits James Tottle James Tottle Richard Hughes Nick Philips Alan Watson iv) Agency advice/ cost Patrick Joynson Paul Fairhurst Nick Williams Paul Williams Jonathan Gardiner mitigation * Gary Bulloch Stephen Thorp Stephen Morgan Rob Huthwaite Kevin Tuck v) Planning and Jeremy Hinds Richard Serra Paul Rouse Craig O’Brien Neil Rowley development vi) Valuation appraisals John Adlen Matthew Jones Barry Allen Julian Harbottle David Williams vii) Business case Alex Dawson, Clive Alex Dawson, Clive Alex Dawson, Clive Alex Dawson, Clive Alex Dawson, Clive planning Shore, Patrick Shore, Paul Shore, Nick Shore, Paul Shore, Jonathan Joynson & Savills Fairhurst & Savills Williams & Savills Williams & Savills Gardiner & Savills Internal Steering Internal Steering Internal Steering Internal Steering Internal Steering Committee Committee Committee Committee Committee viii) Agency Patrick Joynson Paul Fairhurst Nick Williams Paul Williams Jonathan Gardiner implementation ** ix) Additional advice Via Alex Dawson Via Alex Dawson Via Alex Dawson Via Alex Dawson Via Alex Dawson * In terms of cost consultancy, we operate service hubs in London and Manchester, via Brian Barrett and Kieran Rainsford respectively. In terms of services cost mitigation, we propose to sub contract FHP, as we have done with our work on the London and Bristol pilot projects ** In the event that Auction services are required, the service will be led by Christopher Coleman-Smith, irrespective of UK location

GPU – National Property Services Tender Page 45 Savills response to Mini-competition Brief

John Adlen MRICS Director, Strategic Development, Manchester T: +44 (0) 161 244 7791 M: +44 (0) 7870 999 141 E: [email protected]

John is Head of Strategic Development in Savills Manchester office and responsible for leading on strategic consulting projects across the North of England.

John’s expertise lies in regeneration delivery including, feasibility and viability testing, options appraisal, development appraisal and developer procurement for public and private sector clients. He has extensive experience of advising a range of regeneration bodies including the HCA, NWDA, Liverpool Vision, West Lakes Renaissance, North Staffordshire Regeneration Partnership and a number of the Housing Market Renewal Pathfinders. John is currently leading Savills work nationally on Tax Increment Financing (TIF). Recent projects include:

• Advising Redcar & Cleveland Council on the feasibility of establishing a Tax Increment Financing (TIF) scheme in South Tees, one of the first of its kind in the UK. • Carrying out due diligence on behalf of the HCA on the regeneration proposals for the Grove Hill estate in Middlesbrough which includes a 700 unit scheme by Barratt Homes.

Barry Allen MA (Cantab) MRICS Director and Head of Birmingham Office T: +44 (0) 121 634 8411 M: +44 (0) 7870 555 702 E: [email protected]

Barry is head of the Birmingham office and of regional commercial development: he specialises in development advice and agency. His work extends across office, science park, industrial, distribution and residential sectors, including the provision of expert evidence. Barry has extensive experience of working with corporate occupiers to resolve occupational issues and relocations.

He has advised on some of the largest schemes in the Midlands, including Blythe Valley Park, Castle Donington Power Station, Hams Hall, the Eastside regeneration area of Birmingham, and Rugby Radio Station.

Barry is currently working with Stoke City Council and Halton Borough Council to deliver major city and town centre regeneration projects.

GPU – National Property Services Tender Page 46 Savills response to Mini-competition Brief

Brian Barrett MRICS Director, Public Sector, London T: +44 (0) 20 7877 4519 M: +44 (0) 7710 277531 E: [email protected]

Brian is responsible for Cost Consultancy. He has over 27 years experience delivering employer’s agent and quantity surveying services to clients across all construction sectors. He has specialised in the public sector for the last 10 years. Brian has extensive experience in different forms of procurement and contractual arrangements both partnering and traditional. Recent projects include: ƒ Brian is currently providing pre-contract consultancy services for the Government Procurement Office to facilitate redevelopment appraisals at the Parliamentary Council’s Office and Department for International Development offices. ƒ Project Management, Employers Agent and Cost Consultant: ƒ Fire Control buildings for CLG located in Merton and Fareham. ƒ The London Borough of Barking & Dagenham delivering decent homes programme, 160 new homes, GLA funded climate change project on two existing tower blocks. ƒ Metropolitan Housing Trust new build housing at Chalkhill, Wembley and developments in the East Midlands. ƒ Canalside Housing Partnership, £40m stocktransfer Hackney.

Jeremy Bates MRICS Executive Director and Head of UK Agency Office Agency T: +44 (0) 20 7409 8813 M: +44 (0) 7968 550 349 E: [email protected]

Jeremy is an Executive Director of Savills Commercial and Head of Savills UK Agency practice. He is responsible for national offices, industrial, retail and leisure. His core skills cover development, sales, leasing and acquisition of offices and large scale mixed use sites. With a wide range of experience, Jeremy has been proactive in delivering development advice, disposal and acquisition of major business park and office properties throughout the UK to a number of high profile clients. He has also been particularly involved with a number of major US corporates, representing them throughout the UK and into Europe. Jeremy now specialises in providing development consultancy advice and disposal/acquisition services for a range of landowners, corporates and property companies. Jeremy’s recent projects include: ƒ Chiswick Park, London, W4 - jointly responsible for initiating Chiswick Park Property Unit Trust Fund to acquire and develop 33 acres in West London, with planning consent

GPU – National Property Services Tender Page 47 Savills response to Mini-competition Brief

for 1.9 million sq. ft of offices. Since first start on site in January 2000, 1.25m sq. ft net has been constructed of which approximately 94% is let and occupied. Chiswick Park is the first branded lifestyle office workplace in the UK. The developers are Stanhope Plc with Richard Rogers Partnership as Master plan and Building Architects. ƒ Arlington Business Park, Reading - advising Arlington Securities plc (now Goodman)for the past 14 years from land purchase through master planning, creating development standards, building design, occupier research, targeting, marketing and leasing in excess of 750,000 sq. ft net B1 offices. Currently master planning a further 200,000sq ft GEA phase on 8 acres.

Gary Bulloch MRICS

Director, Building & Project Consultancy, Manchester

T: +44 (0) 161 277 7247 M: +44 (0) 7870 555 826 E:[email protected]

Gary works within the 10 strong Manchester Building Consultancy Team and heads a team of five specialising in the commercial refurbishment and fit-out sector. Their work is wide ranging, centring on the appraisal, acquisition, design and project management of a variety of project types on behalf of both Landlords and Occupiers.

Gary’s team provides a holistic and yet extremely detailed approach covering Project Management, Cost Control and Interior Design. Gary has developed a highly regarded team with an excellent track record.

Recent projects include:

ƒ Helena Partnerships (Housing Association) – Acquisition and fit-out of 25,000sq.ft office building including café. Full design and Project Management role. Design and Project Management for the refurbishment of two further district offices and provision of interior design schemes and standard specifications for various residential schemes.

ƒ L&G - No.1 Tithebarn Street, Liverpool. Appraisal and acquisition survey of 110,000sq.ft 1970’s office building in Liverpool City Centre. Lead Design & Contract Administration of £4.8m refurbishment undertaken whilst building 50% occupied.

Chris Coleman-Smith Director / Auctioneer, Head of Auctions Department T: +44 (0) 20 7824 9036 M: +44 (0) 7967 555 637 E: [email protected]

Chris has over 30 years experience as a property auctioneer dealing with all types of residential and commercial properties for clients throughout the UK. His career began in 1978 with Hawes & Co, Estate Agents & Surveyors in New Malden,

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Surrey, initially as a residential sales manager and subsequently the commercial agency manager. In 1986 he joined Barnard Marcus as commercial auctions manager in their Mayfair office. In October 1992 he left to take up the position of property auctioneer for Willmotts, a long established West London practice, dealing principally in residential properties in London and to a lesser degree throughout England. Since June 1998 Chris has been the property auctioneer with Savills Based in Sloane Street, London SW1, dealing with the sales of property across United Kingdom. Key clients include London & Quadrant Housing association, Thames Water Property, Mountview Estates Plc, William Pears Group, Peabody Trust, Dorringtons Plc, Shepherds Bush Housing Association, various Local Authorities and Registered Social Landlords.

Alex J D Dawson MRICS Director, Public Sector Consultancy, London T: +44 (0) 20 7016 3826 M: +44 (0) 7774 827519 E: [email protected]

Alex is a Director focusing on public sector clients, with over 20 years experience advising public sector clients. He provides direct client advice with experience in consultancy, property strategy, valuation, and public private partnership structures. He is also responsible for the bid process and management of Framework Agreements with public sector clients and Savills. Recent advice has included bid preparation coordination and delivery through OJEU and framework agreement procurement requirements to public sector clients and agencies for UK wide strategic property consultancy projects. Projects have included estates review advice to the Ministry of Justice in 10 UK conurbations. This strategic review of all property occupied by organisations within the Ministry required inspection and review to identify opportunities for cost saving, and the preparation of business case for estates rationalisation. The strategy identified opportunities to deliver £52million of estate savings. Other projects have included advice to several local authority clients in relation to their property issues, advice to SOCA in relation to their UK estate, identifying and delivering opportunities for savings and estate rationalisation, advice to the Ministry of Justice, Ministry of Defence and the Home Office in relation to their central London properties, Ministry of Defence in the delivery of the MODEL Public Private Partnership to rationalise their London training estate, and on their appointment of a Development Partner via OJEU Competitive Dialogue Procedure to dispose of an MOD surplus site, leading to the delivery over 5,000 homes and additional commercial development.

GPU – National Property Services Tender Page 49 Savills response to Mini-competition Brief

Paul Fairhurst MRICS Director, Office Agency, Leeds T: +44 (0) 113 2201207 M: +44 (0) 7870 555935 E: [email protected]

Paul Fairhurst is a Director and Head of Savills Commercial in the Leeds office covering Office Agency and development. Paul has experience of many high profile office schemes in Yorkshire and the North East both in the Town Centres and the out of town office parks. His experience has involved the full development process from site purchase, scheme design, marketing and letting. He has advised numerous firms in the region on successful relocations including Ernst & Young and DWF to Bridgewater Place, Bentley Jennison to Wellington Place and DLA to West One in Leeds. He has recently advised Kennedy’s solicitors in their expansion into Sheffield at Digital Campus. He has recently sold City House in Leeds (120,000 sq ft) to Bruntwood for the Administrators of Kenmore’s portfolio and The Algernon Firth Building for Leeds University as well as acquiring the former Majestyk Nightclub in Leeds’ City Square on behalf of Rushbond Group. Paul has worked on many of Yorkshire’s key office schemes including Simons’ City Walk, Criterion Place, Tower Works and Clarence Dock. Out of town he has advised on most of the Leeds office parks including Thorpe Park (J46, M1), White Rose Office Park and Peel’s 220 acre Calder Park in Wakefield.

Oliver Fursdon MRICS Associate, Public Sector/ Development, London T: +44 (0) 207 409 5900 M: +44 (0) 7870 999 183 E: [email protected]

Oliver is an Associate focusing on providing public and private sector clients with strategic and asset management advice in relation to property portfolios, estates and individual holdings. He has provided GPU with agency, development and strategic support during the London and Bristol pilot schemes, as well as managing the contract within Savills. Oliver led the Savills team that recently won appointment to advisory frameworks for HCA, HM Treasury and the BBC. He manages Savills involvement on several other national panels, including Royal Mail, Transport for London, and Network Rail. In so doing, Oliver has gained detailed understanding of the specific requirements of public sector and regulated organisations, and the procurement process. Oliver has been involved in advising the Homes and Communities Agency on site appraisals and land purchases, as well as providing development consultancy and adverse possession advice to the Lee Valley Regional Park Authority. He has also provided market appraisal advice on a mixed used scheme in Tower Hamlets for Poplar HARCA, and on two retail-led development schemes in Epping. He is currently advising Epping Forest District Council on two town centre retail and residential development schemes, including

GPU – National Property Services Tender Page 50 Savills response to Mini-competition Brief

value and cost advice, deliverability and negotiation with developers and adjacent landowners. Other work has included providing negotiation skills and professional advice on compulsory purchase and compensation claims, valuations, insurance, and the sale of rural property to private and institutional clients and management of a variety of properties and alternative enterprises.

Jonathan Gardiner MRICS Director, Regional Offices, London T: +44 (0) 20 7409 8828 M: +44 (0) 7870 555 703 E: [email protected]

Jon is a property specialist within the South East office market with a particular focus on leasing, development and tenant representation projects. He has worked for some of the largest property companies, developers, funds, institutions and corporate occupiers providing a diverse range of advice. He has over ten years experience of working within the Thames Valley and M25 office market and has been instrumental on a number of high profile instructions including Chiswick Park (Stanhope/CHISPUT), Bath Road, Slough (SEGRO), Forbury Square (Argent), Arlington Business Park, Reading (Goodman) and Stockley Park (USS). Other recent projects include: ƒ Crossways Business Park, Dartford, advised Shepherd Developments and Durngate Property Group in the site purchase and subsequent advice in the design, master planning and marketing of a 100,000 sq ft office scheme. ƒ Stockley Park, acting for USS, advised on the marketing and leasing of 125,000 sq ft across the park including 45,000 sq ft at 5 Roundwood Avenue to Pipex Communications Plc. ƒ Midmoor House and Merevale House, Richmond, advised Walls Holdings on the site purchase and subsequent advice for a proposed new 35,000 sq ft office scheme.

Julian Harbottle MRICS Director, Development and Valuation, Bristol T: +44 (0)117 910 0329 M: +44 (0)7812 965 314 E: [email protected]

Julian is head of the Development and Valuation team in Bristol and specialises in advising on regeneration projects throughout the South West and South Wales, as well as strategic development land opportunities in the local area. Julian provides agency and consultancy advice, particularly in the residential and mixed use sectors. He has advised on many regeneration schemes over recent years, leading

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the Savills team on the disposal of Coed Darcy Urban Village (5,500 homes) and subsequently being retained by the purchaser to advise on the future land sales disposal strategy. He has particular expertise in land assembly on large strategic sites and has advised SWRDA, WAG and other local authorities on regeneration projects in Gloucester, Ebbw Vale and Bideford. Recent projects: ƒ Advising BP on the disposal of the former Llandarcy oil refinery with an allocation for 4,000 homes. ƒ Providing development consultancy advice on the Sherford, Devon, project for 5,500 homes. ƒ Advising St Modwen Developments on the disposal and delivery of the Littlecombe Urban Village in Dursley, Gloucestershire. ƒ Lead development consultancy to the Welsh Assembly Government on the regeneration of the former Corus steelworks in Ebbw Vale.

Jeremy Hinds MRTPI Director, National Planning, Manchester T: +44 (0) 161 277 7278 M: +44 (0) 798 960 4877 E: [email protected]

Jeremy is Director of Savills Retail Planning. He works closely with retail investment and retail agency teams in Savills as well as other retail property specialists. His retail team comprises over 20 professional staff located throughout Savills main offices in London, Manchester, Edinburgh and Glasgow. Jeremy is able to give commercial planning advice to meet specific retail needs of a wide range of clients in all key private sector areas of the retail sector. He frequently acts as lead consultant on development teams and is instructed to give expert evidence at public inquiries. Jeremy’s main areas of expertise are: Advising on developments for new retail floor space in out-of-centre retail parks: ƒ Southend Football Club. He promoted the retail case at a call-in inquiry for 200,000 sq ft of out-of-centre retail warehousing. ƒ Aintree Retail Park. Amended the planning conditions to allow for unrestricted retail use for 80,000 sq ft. ƒ Burton Rugby Football Club (BRFC), Burton on Trent. Advising BRFC on the redevelopment of their existing town centre site for large format retail development to fund their relocation to new purpose built stadium facilities within Burton. Advising on major development strategy ƒ Investment purchases for UBS. ƒ Investment sales for Henderson.

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Richard Hughes MRICS ACIArb Director, Landlord and Tenant, Birmingham T: +44 (0) 121 634 8427M: +44 (0) 7972 000 096 E: [email protected]

Richard Hughes is a Director based in Savills Birmingham office.

Richard is Head of the Lease Consultancy Department in the Birmingham office and is responsible for professional work across all sectors throughout the Midlands area. Richard has acted on the sale and letting of offices for a number of local and national developers, landlords and property funds. He provides advice throughout Birmingham and the midlands region.

Rob Huthwaite MRICS Director, Building and Project Consultancy, Bristol T: +44 (0) 117 910 2223 M: +44 (0) 7775 853228 E:[email protected]

Rob is responsible for leading the projects team specialising in adding value by design. He advises on development feasibility, providing early cost and design advice for all types of commercial building projects.

Rob also advises on planned preventive maintenance and programming of building and services improvements for commercial and healthcare occupiers.

Recent projects include Initial feasibility followed by detailed design for a specialist care unit scheme in Witney, West Oxfordshire, on behalf of Judlor; detailed design for a 70 bed nursing home in Fleet, Hampshire, for developer client Nelson Geneva; initial feasibility and cost advice for a mixed use proposal on a former horticultural site near Bristol for Wheatfields PG; detailed design proposals for a new specialist joinery workshop near Lydney in the Forest of Dean, for owner occupier and initial feasibility followed by detailed design for a new tyre depot, garage and filling station near Bristol International Airport.

Matthew Jones MRICS Director, Development Agency & Consultancy, Leeds T: +44 (0) 113 220 1252 M: +44 (0) 7812 965 484 E: [email protected]

Matthew specialises in all aspects of development property including the acquisition and sale of immediate development opportunities and strategic development land. He has significant experience in development consultancy work and valuations. He is Head of

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Office and a Director in the Development Department in the Savills Leeds office.

He advises a variety of clients on mixed use and residential developments throughout the North East and Yorkshire region. He handles a whole range of projects, principally providing advice in terms of mixed-use developments and sole residential development sites. In addition to advising landowners and developers, he also provides a wide range of professional services to banks, funders and developers on potential development opportunities.

Transactions over the last three years include: ƒ Assisted Private Property Trust on a strategic review of their portfolio and undertaking a disposal programme of their assets. ƒ Advice to National House Builder on the purchase of a regional house builder, including valuation and strategic land assessment. ƒ Sale of 6 acre site with residential planning consent for St Modwen Properties in North Leeds.

Patrick Joynson MRICS

Director and Head of Manchester Office Agency

T: +44 (0) 161 277 7216 M: +44 (0) 7870 555 721 E: [email protected]

Patrick heads the Manchester office which is now recognised as one of the largest and most active in the North West and the only major international real estate advisor that covers the commercial and residential markets. He provides strategic development advice on a variety of large mixed use schemes around the region as well as specialising in the disposal of business space. He has worked in Manchester for 20 years setting up the Savills office in 1996. Over which time the office has grown from 3 to 150 staff covering all sectors of the property market In addition to running the Manchester office Patrick is currently involved in providing development and agency advice on and the marketing of the following major schemes: ƒ First Street, Manchester (2.5m sq ft.) Providing development, agency and market advice to Ask Developments and Manchester City Council. First Street will be a large mixed use development to include offices, residential, leisure and retail. The gateway site will become one of Manchester city centre’s largest developments creating a new Southern Gateway to the city. ƒ Piccadilly Place, Manchester (500,000 sq ft) providing development and marketing advice to Argent and Carlyle on the development of 500,000 sq ft of office accommodation opposite Piccadilly station. ƒ The HQ Chester (200,000 sq ft) Acquired the former Cheshire police HQ site for Liberty Properties providing detailed development , agency and investment advice on Chester’s most prominent mixed use scheme which d included offices, hotel, residential and restaurants around a public piazza.

GPU – National Property Services Tender Page 54 Savills response to Mini-competition Brief

Howard Morgan MCIOB MRICS Director, Building & Project Consultancy T: +44 (0) 161 277 7246 M+44 (0) 7870 555 773 E: [email protected]

Howard heads up the Northern Building Surveying Division which includes Edinburgh, Glasgow, Leeds and Manchester. The Building Surveying teams look after all aspects of Building Surveying but particularly specialise in project based work. Savills in house teams specialise in Pre-Acquisition Surveys, Dilapidations, New-Build Project Management and Design and Refurbishment of all types of commercial property. Recent projects undertaken include: ƒ £2m new-build scheme in Rotherham ƒ £4m refurbishment of a 1970’s building in Liverpool, ƒ Extensive external and internal refurbishment of a grade 2 star listed building in Manchester along with construction of new Out of Town retail units and refurbishment of retail units.

Stephen Morgan MRICS FBEng MCIM

Director, Building & Project Consultancy, Birmingham

T: +44 (0) 121 634 8454 M: +44 (0) 7870 999 690E:[email protected]

Stephen heads the Building Consultancy and Project Management team in the Birmingham office.

Stephen has experience in the full range of project management and building surveying services including all aspects of professional and project services to commercial, public sector and institutional clients, including project management, project monitoring and pre- acquisition surveys.

Stephen also has experience as an expert witness, primarily on defects and contracts & technology issues, on both commercial and residential properties. Stephen obtained a degree in Building Surveying at Birmingham Polytechnic and a Masters degree in architectural conservation at De Montfort University.

GPU – National Property Services Tender Page 55 Savills response to Mini-competition Brief

Craig O’Brien BTP MRTPI Director, Planning and Regeneration, Bristol T: +44 (0) 117 910 0335 M: +44 (0) 7870 999 474 E: [email protected]

Craig O’Brien is head of the Savills Planning team in Bristol. He is responsible for leading the team on a variety of projects, specialising in larger scale mixed use regeneration projects, particularly retail lead town centre schemes. Craig has over 18 years experience in planning consultancy and development. He has advised on a wide variety of projects which involved managing multi disciplinary teams to prepare master plan-based outline applications and produce the environmental impact assessment of these proposals. Both involved very large retail assessments. Recent projects: ƒ Adviser to SWDRA in respect of the planning issues associated with the disposal of sites at Temple Quay, Bristol. ƒ Planning strategy advice to Muse Developments and English Cities Fund in respect of mixed use scheme at Millbay, Plymouth. ƒ Adviser to Project Taunton on the expansion scheme for Taunton town centre including planning, retail and CPO issues. ƒ Delivery of the planning permissions and CPO for Cabot Circus for the Bristol Alliance.

Michael Pillow Executive Director, Building Consultancy, London T: +44 (0) 207 409 8981 M:+44 (0) 7968 550348 E: [email protected]

Michael is an Executive Director of Savills Commercial and leads the National Building Consultancy. He is a Chartered Project Management Surveyor and has been with the Savills group since 1989. He has worked for clients across both the public and private sector. Michael is responsible for the London Building Consultancy Department, which undertakes project management, project monitoring and professional building surveying services. The department acts for developers, landlords and occupiers across a wide workload that covers new development, refurbishment and fit out. Michael has advised a wide range of clients on procurement methodology to ascertain the most beneficial and cost effective method of appointing contractors and suppliers including procurement options studies to consider the cost and benefits of traditional, construction management or design and build. Michael has also had some considerable involvement of stock condition surveys and some years ago led the team that was involved in undertaking the stock survey of the Ministry of Defence Married Quarters Estate.

GPU – National Property Services Tender Page 56 Savills response to Mini-competition Brief

Nick Phillips MRICS ACIArb Director, Landlord & Tenant / Asset Advisory, Bristol T: +44 (0)117 910 2217 M +44 (0) 77870 999 600 E: [email protected]

Nick acts for both landlord and tenant clients, negotiating rents at review and lease terms at renewal. Increasingly, he acts in an advisory role, restructuring occupational terms according to market conditions. He regularly acts as expert witness and prepares reports to arbitrators, independent experts, court and under PACT. He has worked in the South West and South Wales for over ten years, having previously qualified as a Member of the Royal Institution of Chartered Surveyors at Richard Ellis in Manchester in 1996. Recently Nick was Instructed on Wyndham Way Retail Park and Bodmin Retail Park on units with a combined rent roll of over £1m per annum. He has advised on landlord and tenant matters in six shopping centres of up to 500,000 sq ft. Nick achieved successful arbitration outcomes for two separate landlords at rent reviews in June and November 2008 in High Street, Barnstaple. He concluded a total of seven rent reviews for Burges Salmon within Broad Quay House in Bristol city centre. Nick was recently instructed on a rent review on a prime 50,000 sq ft single let office building in Cardiff.

Kieran Rainsford MRICS Director, Public Sector, Liverpool T: +44 (0) 151 331 5500 M: +44 (0) 07775 314 713 E:[email protected]

Kieran is Head of Savills Liverpool office. He has extensive experience in procurement methods both partnering and traditional and a detailed understanding of contractual arrangements from standard contracts to high level development agreements. During the last 15 years he has been involved in all types of housing association and local authority schemes. These have ranged from single building refurbishments, new build housing, decent homes projects for stock transfers and complete estate regeneration. Projects have covered all sectors and have included schemes such as hospital refurbishments, shopping centres, new schools, school re-planning, new cinemas, theatre refurbishment, offices, retail and commercial. Recent projects include: ƒ Project Managing and cost management in the delivery of decent homes refurbishment programme for both Liverpool Mutual Homes and City West. ƒ Housing Trust with a combined 30,000 properties and budget of £600m. ƒ The scheme is ongoing with a combination of low and high rise properties. ƒ Providing cost and procurement advice on a major estate regeneration in Manchester comprising 600 new flats, houses and bungalows in a mixed tenure scheme.

GPU – National Property Services Tender Page 57 Savills response to Mini-competition Brief

Mark Ridley MRICS Chairman and Chief Executive T: +44 (0) 20 7409 8030 M: +44 (0) 7870 555 771 E: [email protected]

Mark is Chairman and Chief Executive of Savills Commercial Limited. He is a highly experienced Investment Agent and has been active in the market for over 25 years. Prior to this, Mark was Head of the Manchester office which he set up in 1996. He has extensive experience in Investment, Development and Agency throughout the UK, as well as the Far East and Australia. In addition to his Management role, major recent transactions Mark has acted on include the sale of Bridgewater House, Manchester for £25 million on behalf of UBS, a multi-let office building extending to 200 000 sq ft, the funding of HQ in Chester for £60million on behalf of Liberty Property plc / RREEF, and the sale of Victoria Retail Park, Nottingham for £35 million on behalf of Hammerson. Other relevant experience includes the funding and sale of Durham City Retail Park for £48.5 million for F&C Reit, the sale of the B&Q warehouse in Stoke for £26 million on behalf of Ignis, the sale of a mixed High Street Retail portfolio for £40 million on behalf of UK Estates and the acquisition of Malvern Retail Park, Worcester for £47 million on behalf of a private investor. Formerly a Partner at Weatherall Green & Smith, Mark was previously head of the West End agency team.

Paul Rouse MRICS Director, Planning and Regeneration, Birmingham T: +44 (0) 121 634 8431 M+44 (0) 7870 555776 E: [email protected]

Paul heads the planning consultancy division of Savills Birmingham. He is highly experienced in providing strategic planning advice to a wide range of clients to protect and promote planning interests associated with the development, sale, acquisition, occupation and ownership of property. Areas of practice include planning appraisals, promoting planning applications and appeals, economic and retail need and impact assessment, site search and sequential site assessment, strategic advice, development plan promotion, expert witness and general advice with regard to planning law. He provides advice across all property types including business space, retail, housing, education, mixed uses and energy. Recent projects: ƒ Birmingham City University: outline and reserved matters planning permission for new city centre campus of 55,000 sq m. ƒ City Park Gate: outline and reserved matters planning permission for retail, hotel, office and residential development of 92,000 sq m.

GPU – National Property Services Tender Page 58 Savills response to Mini-competition Brief

Neil Rowley MRTPI Director, Planning and Regeneration, London T: +44 (0) 20 7409 5929 M:+44 (0) 7870 999 723 E: [email protected]

Neil is a Director within Savills Planning team and has a proven track record of gaining planning consents for commercial and residential development. He also has a mix of private and public sector experience. Recent and current projects where Neil is responsible for providing planning advice to a range of clients include: ƒ Former Paulton Printing Factory, Bristol – outline planning permission granted for 400 residential units, office, industrial, commercial development and Continuing Care Retirement Community. ƒ Letcombe Regis, Oxfordshire – outline planning permission was granted for a Continuing Care Retirement Community on a former agricultural research centre site. ƒ The Banstead Estate, Surrey – providing strategic advice as to the development potential of the estate. ƒ Newland Park, Chalfont St Giles – outline planning application forthcoming for residential development on former Bucks University campus. ƒ Slipper Lane, Mirfield – outline planning permission submitted for employment (B1/B2) and healthcare development.

Richard Serra MRICS MRTPI Director, Planning and Regeneration, Leeds T: +44 (0) 113 220 1271 M: +44 (0) 7807 999 154 E: [email protected]

Richard heads the Savills Northern Planning Group with teams in Leeds and Nottingham. He is a chartered surveyor and chartered town planner with over 17 years of experience in both the public and private sectors. Richard is an expert witness and is a member of the Compulsory Purchase Association. He is also the Savills national spokesperson on Community Infrastructure Levy and Tax Increment Financing. Recent projects include: ƒ Securing planning permission for the redevelopment of White Hart Lane to provide a new 56,250 seat stadium and associated development for Tottenham Hotspur FC. ƒ Securing planning permission for the three million sq ft redevelopment of Wellington Place in Leeds for MEPC. ƒ Securing planning permission for the redevelopment of the former Vosper Thorneycroft Shipyard in Southampton for Crest Nicholson Regeneration and SEEDA to provide 1,600 new homes; foodstore; hotel and marine employment quarter creating 1,400 jobs.

GPU – National Property Services Tender Page 59 Savills response to Mini-competition Brief

James Sparrow MRICS Director, Head of Public Sector T: +44 (0) 20 7409 8737 M: +44 (0) 7870 555 729 E: [email protected]

James joined Savills Commercial Limited in 1988 and qualified as a Chartered Surveyor in 1990. He is head of the Public Sector Business and an acknowledged expert in the field of stock condition, asset management and planned maintenance surveys. He regularly speaks at conferences and seminars and is consulted by Local Authorities, Housing Associations, Funders, CLG and other key Stakeholders in the sector. Recent projects include the project management of numerous large surveys including Glasgow City Council (80,000 properties), Birmingham City Council (70,000 properties), Sheffield City Council (60,000 properties), and Manchester City Council (60,000 properties). James provided advice on the procurement/deliverability issues in connection with the implementation of a £2 billion building works programme in Glasgow following the transfer of housing stock from the Council to the Glasgow Housing Association. He undertook the project management of PFI stock condition surveys for Manchester City Council and London Borough of Lewisham and has managed Stock Condition Surveys and developing stock investment strategies for numerous Housing Associations including Places for People, Home Group and Guinness Trust.

Stephen Throp MRICS

Director, Building & Project Consultancy, Leeds

T: +44 (0) 113 220 1205 M: +44 (0) 7870 999 643 E: [email protected]

Stephen is Director of the Savills Leeds Building Consultancy and Project Management Team. Stephen has over 20 years of experience and has worked on both the client and consultancy side of the business from where he has gained a wide range of commercial Building Surveying experience across all sectors of the industry. Savills in house teams specialise in Pre-Acquisition Surveys, Dilapidations, New-Build Project Management and Design and Refurbishment of all types of commercial property.

Recent projects include: ƒ Commercial Estates Group (CEG) - Central House, Harrogate (200,000 sq. ft.) - Employers Agent and cost control. Re-cladding of offices whilst tenants remained in occupation. Contract value £2.5m. ƒ British Railways Board - Southern House, Croydon (170,000 sq. ft.) – Full design, cost control and project management of the building including the installation of new windows, services, lifts and finishes in common parts and offices. Contract value £14m.

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James Tottle MRICS Director, Landlord and Tenant, Manchester T: +44 (0)161 277 7250 M: +44 (0) 7967 555 879 E: [email protected]

James is Head of the Manchester Lease Consultancy Team and a specialist in Rent Reviews and Lease Renewals. James advises corporate occupiers and property owners with interests throughout the North West. He has considerable experience in conducting Rent Reviews and Lease Renewals in Greater Manchester and the wider Northern Region.

Kevin Tuck MRICS

Director, Building Consultancy

T: +44 (0) 207 409 8938 M: +44 (0) 7870 555 894 E: [email protected]

Kevin has 25 years experience in commercial project management and building surveying. His experience extends in particular to monitoring of large construction projects, refurbishment of occupied offices, Fit Out, development management & due diligence for blue chip institutional funds. Examples of recent projects include: ƒ Paradigm Housing: Project Management and Employers Agent for full office relocation and Fit Out to new office building (BREEAM Excellent rated and Ska Silver Rated) near High Wycombe. This followed full building assessment studies and space planning options to a number of buildings. ƒ NYK Line: Relocation advice, office re-fit and project management for two companies, NYK Line and NYK Bulkship, to new offices at City Point, London, 3,067 m2 (£2.3m) ƒ Bravura Solutions: Project Management of Fit Out and relocation of offices from Bank of New York to a new location in the City of London.

Alan Watson MRICS MCIArb Director, Landlord and Tenant, London T: +44 (0) 20 7409 9935 M: +44 (0) 7870 171 667 E: [email protected]

Alan has 20 years experience of landlord and tenant matters of industrial, distribution and office premises, specifically rent reviews, lease renewals and acting as Expert Witness in third party proceedings. He also advises on Sales and Leaseback deals, surrenders and re-gearings. He is an expert in all aspects of Landlord & Tenant law, and has extensive experience in representing clients at court proceedings and oral hearings.

GPU – National Property Services Tender Page 61 Savills response to Mini-competition Brief

David Williams Executive Director, Development, London T: +44 (0) 20 7409 8709 M: +44 (0) 7879 402 559 E:[email protected]

David joined Savills in 1982 and became a member of the Commercial Executive Board in 1998. He currently advises developers, occupiers and landlords on major investment, development and relocation opportunities David coordinates and brings together other important elements of the Savills team whose sole focus is based on adding value to any sales or acquisition process. Currently David is advising Argent as leasing advisor on the offices to be built at King’s Cross, amounting to some 4,000,000sq ft., Stanhope and Schroders at Croydon Gateway, which has consent for 1,600,000 sq ft of mixed development as well advising Development Securities, Aviva and Quinlan at Paddington Central. Additionally he leads Savills team acting as land agent to the University of Reading and their landholdings which amount to over 3,000 acres. David is former Chairman of the Office Agents Society, sits on the BCO Recruitment Committee and on the board of Savills Commercial Ltd., having previously been a member of the remuneration committee for 6 years.

Nick Williams MRICS

Director, Office Agency, Birmingham

T: +44 (0) 121 634 8401 M: +44 (0) 7870 555736 E: [email protected]

Nick specialises in office agency and development consultancy. His work extends across all aspects of office related sectors. He has advised on city centre and out of town projects, including premier schemes such as Blythe Valley Park and the former Post and Mail building in Birmingham city centre. Projects have included the acquisition of 103 Colmore Row for British Land, regeneration advice on Eastside, in particular City Park Gate, and development advice on 93 acres at Jaguar Whitley, Coventry. He also provides strategic development advice on major out of town schemes such as Blythe Valley Park, Solihull and Tournament Fields, Warwick. Recent projects include: ƒ Lafarge Cement - Portland House, Solihull: Part disposal of regional headquarters office building adjacent to Birmingham International Railway Station. Now part let to waste services provider Biffa for regional headquarters. ƒ Infor Global Solutions - Nexus, Solihull: Acquisition of 60,000 sq ft on the M42 for new regional headquarters office. Advised on acquisition of Nexus, Blythe Valley Park. ƒ Sackville Properties – Tournament Fields, Warwick: Design and agency advice on 50 acre business park off Junction 15 of the M40. Recent successes include a 16,000 sq ft pre-let to Gerberit and 15,000 sq ft under offer in the latest phase of speculative development.

GPU – National Property Services Tender Page 62 Savills response to Mini-competition Brief

Paul Williams MRICS Director, Office Agency, Bristol T: +44 (0) 117 910 2226 M: +44 (0) 7972 000140 E: [email protected]

Paul is director of office agency in the Bristol office. He has more than 15 years experience in the Bristol office agency market and has a successful track record acting for both landlords and tenants in Bristol and the South West. Paul has acted on the sale and letting of offices for a number of local and national developers, landlords and property funds. He provides advice on the letting, sale and acquisition of office premises throughout Bristol, Bath and the South West region, and has acted for a number of private sector companies, providing detailed acquisition advice and negotiating terms for new leases. Projects Paul has handled include: acquiring the new Bristol HQ for accountants BDO Stoy Hayward; acquiring new Bristol offices for international cost consultants, Gardiner & Theobald and acting for Rok Development over a 5 year period handling sales and lettings on the 90,000 sq ft Eden Office Park on the Bristol fringe. Paul also provides advice on new office development schemes, including undertaking development appraisals, site layout, advice on building types, specification and sizes, and advice on rental and capital values, through to the marketing of the completed product.

Theo Williams BSc (Hons) MRICS Director, Lease Consultancy, London T: +44 (0) 20 7409 8775 M: +44 (0) 7870 555 737 E: [email protected]

Theo has over 20 years experience in the Commercial property market, providing Lease Consultancy in respect of renegotiating lease terms, on rent reviews and on lease renewal transactions acting on behalf of both Institutional Landlords, Property Companies and Corporate Clients. His focus of attention is primarily within the business space working in close liaison with agency and investment colleagues facilitating the successful implementation of active management initiatives and corporate strategy.

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Questions 5: Main point of contact

As requested, we have identified below the key day-to-day individual within Savills, who will remain the key point of contact for GPU throughout the duration of the appointment, irrespective of enquiry or region. The principal role will include contract and resource management, performance monitoring, and reporting into the Contract Director and Savills Internal Steering Committee.

Assistant Contract Director – Alex Dawson T: +44 (0) 20 7016 3826 M: +44 (0) 7774 827519 E: [email protected]

Our understanding of the GPU approach to this project is that it is to be ‘deal lead’, focusing on accelerated moves and chains of moves, in order to drive savings out of the portfolio. For this reason, we have identified a senior agency Director, based in London, to oversee delivery. Equally important, the Contract Director has been working with GPU over the last six months, and therefore has an in-depth understanding of how the organisation operates.

Contract Director – Liell Francklin T: +44 (0) 20 7409 8712 M: +44 (0) 7870 555 712 E: [email protected]

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Question 6: Organogram

GPU – National Property Services Tender Page 65 Savills response to Mini-competition Brief

Question 7: Task allocation

Director-led supervision is a key feature of Savills business structure, and as such, work does not leave Savills without it having been signed off as being of the highest quality. Similarly, we recognise that it is not an effective use of time and resources to task Directors with work that could be carried out by other team members to the necessary standard. This will include gathering of comparable market data when appraising options for disposal of a building for example. Once the initial data gathering and review work is complete, we anticipate that GPU requirements are more likely to consist of face-to-face and ad-hoc advice, via meetings, phone calls and emails, rather than preparation of reports. This means that percentage of Director involvement is likely to be higher than it otherwise would be. As such, we anticipate the approximate split of workload per grade of fee earner to be as follows:

Director: 30% Associate Director: 20% Associate: 20% Surveyor: 15% Graduate: 15%

Given the potential scale of this project, and the depth of Savills resource, we have not sought to provide at Question 4 details of every individual who may have involvement in the event that we are appointed (although this information can be provided if required). We can provide more detail on a service by service basis, or building by building, once the scope of work is defined at the initial client meeting.

GPU – National Property Services Tender Page 66 Savills response to Mini-competition Brief

SECTION C – Charging

Our fee quotation below is based on the brief provided, including the duration of the project identified within the brief. Please note that we would be pleased to discuss these in more detail at the next stage.

Question 8: Hourly Rates and Agency

In accordance with Savills appointment to the HCA Property Framework, through which this project is being procured, we propose the following rates. These represent a reduction on rates applied to the London and Bristol instruction and a total discount of approximately 33% on our usual market rates, which is reflective of our desire to work with the GPU on this project. Please note that all fees are inclusive of travel costs etc, but exclusive of VAT.

Grade Hourly Rate (£) Director 165 Associate / Senior (6-10 years PQE) 130 Principal Surveyor (3-5 years PQE) 100 Surveyor (0-2 years PQE) 85 Graduate 55

• Capital sales and acquisitions

Agency fees will be charged on a sole agency basis. Please note that any additional third party marketing costs will be charged at cost.

Property Price % fee for sale of property % fee for acquisitions £0 – 500,000 1.50 1.50

£500,000 –£1,000,000 1.15 1.15

£1,000,000 – £5,000,000 1.00 1.00

£over £5,000,000 0.75 0.75

Auctions 1.00 1.00

GPU – National Property Services Tender Page 67 Savills response to Mini-competition Brief

• Leasing:

Agency fees will be charged on a sole agency basis. Please note that any additional third party marketing costs to be charged at cost.

Rental band £pa % fee for letting % fee for acquiring £0 – 100,000 8.00 6.00

£100,000 –£1,000,000 8.00 6.00

£1,000,000 plus 7.00 5.00

• Work on site specific studies to consider alternative land uses including accompanying financial appraisals:

Hourly rates as above will be charged on alternative land use studies and financial appraisal studies. Where we are instructed to support implementation via agency roles for disposal by a conventional freehold sale or agency letting, 50% of any previously invoiced site study and financial appraisal work will be credited against any future disposal agency fee relating to the same property or site. Fees for these disposal instructions will be invoiced 50% on exchange and 50% on completion of the transaction.

Question 9: Additional discounts

• Discounted fees

We propose to offer GPU an overall discount of 10% once a threshold of £50,000 has been reached and a discount of 10% on all fees invoiced after a threshold of £100,000 has been reached. This relates to fees earned by Savills across all service lines identified within the brief, and will commence on the day of appointment and will be recalculated annually on the anniversary, in the event that the commission continues for more than 12 months. For the avoidance of doubt, Savills contract management structure and Internal Steering Committee that we have outlined in our response to question 4 will not incur a charge.

• Disposal Fee Savings

In addition, site appraisal fees will be discounted from future disposal fees as outlined in question 8 above.

GPU – National Property Services Tender Page 68 Savills response to Mini-competition Brief

• Property Cost Saving/ ‘Rent Erosion’ Fees

As an alternative or additional fee proposal, we are willing to operate a fee system based on the property cost savings achieved for GPU. These would be operated where a cost mitigation strategy is implemented, as distinct from conventional agency letting or freehold sale is implemented. Where the NPV of existing cost liabilities up to the end of a lease, or the future ten year freehold holding costs (based on a Treasury Green Book discount appraisal) are reduced due to the implementation of a strategy negotiated and agreed by Savills, an incentivised cost saving fee would be charged. Such proposals may include: • a bespoke agreement with a landlord where an ongoing cost liability (i.e. rent and other property costs) is reduced in return for tenant vacation which enable a landlord refurbishment and re-letting strategy, which results in a cost saving or capital receipt to the tenant • a marriage value/ adjoining owner/ special purchaser agreement leading to savings and the implementation of a bespoke disposal or transfer solution. Where a bespoke cost saving solution is implemented on this basis we propose to apply a fee of 5% of the saving generated. The detailed issues relating to this fee basis can be discussed in more detail at the next stage.

Question 10: Indicative prices

For this exercise, we have based indicative prices on a per region basis, assuming a total of 100 property interests in each region, with no unusual features or considerations, with the provision of services as indicated in your brief. We have estimated the number of hours required on this basis for each of the tasks, per region, costed at the weighted hourly rates per grade as indicated above and according to the fee earner grade allocation indicated in question 7. We would be pleased to discuss these in more detail at the next stage There may be economies of scale savings possible due to adjacencies of properties and regional market inputs, but some buildings and regions will be more complicated and time consuming than others. All fees will be charged on a time spent basis where indicated, and GPU will only be charged for the actual time spent. Discounts outlined in question 9 above will also apply. There will be different degrees to which these services will be applied. For example, in terms of ‘vi. valuation and appraisal advice as necessary including site specific development opportunities’, inputs could vary substantially in terms of scope and scale in relation to the CORE and SURPLUS properties, where a greater input is anticipated in respect of SURPLUS properties. Also, given the disparate size and nature of properties within the portfolio, the figures may need to be adjusted accordingly, both upwards and downwards. Please note that all fees below have been estimated on a non-discounted basis, and therefore will be subject to further reduction.

GPU – National Property Services Tender Page 69 Savills response to Mini-competition Brief

Ref Required GPU Outputs Assumption Indicative Indicative (per region) Fee (per Fee (all 5 region) regions) i Support the GPU in the categorisation 7 days £7,000 £35,000 of the Regional Estates as CORE or SURPLUS ii Space utilisation and planning 50 properties £75,000 £375,000 assessments to show current and x 1.5 day achievable capacity for all CORE each # holdings and how this could be delivered. iii Advice on options for accelerated lease 50 properties £75,000 £375,000 exits for all SURPLUS holdings, and x 1.5 day feasible scenarios for estate each # rationalisation moves and chains of moves. iv Agency advice on mitigating the cost of, 50 properties £25,000 £125,000 or disposing of, SURPLUS property x 0.5 day including mitigation of dilapidations each (Part liabilities; within iii) v Town planning advice on major 15 properties £15,000 £75,000 refurbishments, listing issues, disposal x 1 day each potential, and redevelopment opportunities; vi Valuation and appraisal advice as 25 properties £25,000 £125,000 necessary including site specific x 1 day each development opportunities; vii Support for the GPU in producing a 50 x half £25,000 £125,000 robust plan and Business Case for days # consolidating the estate; viii Supporting implementation via agency Agency scale fees less discounts roles for acquisition/ disposal, refurbishment, or other inputs as necessary ix Other property advice as specified from Hourly rates as required time to time by GPU. # Includes review meetings.

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Contact Details Alex Dawson Director - Public Sector +44 (0) 20 7016 3826 +44 (0) 7774 827 519 [email protected]