Our services are wide ranging to suit the client’s needs:
Portfolio strategy
Real estate, by its very nature is a long-term and relatively illiquid asset. Businesses, on the other hand, need to be fast moving, flexible and responsive. Real estate should not hold back the business in its pursuit of growth. Rather, it should be a propagator of growth. To achieve this it is imperative that the real estate portfolio is aligned with the current and future needs of the business. Strategies can be devised to identify core holdings, churn and flexible holdings and to ensure that future growth or consolidation is anticipated.
At King Sturge, we apply our strong research, consultancy and advisory skills, coupled with our excellent market knowledge to support our clients in defining a clear real estate strategy for their business.
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Capital vs income
Through the combination of expertise in our Corporate Real Estate, Financial Services and Corporate Finance groups, who work as a single bespoke team depending on the nature of the requirement, we can advise in relation to strategies for the freeing up of capital held in real estate assets, creation of joint venture and other off-balance sheet transactions and the disposal/transfer of risk for leasehold liability portfolios. We can also appraise "own versus lease" scenarios.
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Location planning
Drawing upon the capabilities of our Research Consultancy group and utilising a highly statistical GIS-based approach, overlaid with the significant market knowledge of our local offices, we can advise in relation to complex location and relocation decisions.
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Portfolio health check
How many corporate occupiers fully understand the real estate portfolios they hold? We can appraise existing property data, gather missing or incomplete information, undertake condition surveys to understand repairing requirements or dilapidations liabilities etc. We can advise in relation to compliance with legislation, for example relating to energy efficiency certification, or compliance with your own company’s best practice standards. There is no matter in the real estate arena that we cannot professionally appraise, allowing us to report to you with opportunities for benefits realisation.
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Referencing & database
King Sturge can bring together data from a variety of sources, and gather missing or incomplete data, to create a single consolidated database of real estate information, including critical dates, rent and financial information, leases, floorplans, permissions and certificates, budgets and reports, all capable of being viewed by a client and permitted others, over a Sharepoint (secure web based portal).Where required, our integrated property management and accounting system can deal with all Treasury Management matters.
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Leasehold Liabilities
The past five years has seen the emergence of a market whereby corporates holding surplus, non operational property, usually on a leasehold basis, can package the portfolio and transfer this to a third party (who we shall call the purchaser) for a reverse premium, in return for which the third party will take on the liabilities and manage these through. In the public sector, the PRIME portfolio (with which King Sturge were involved) and STEPS portfolio, have led the way for combined freehold and leasehold liability transfers to the private sector. One of the earliest private sector transactions was the Columbus portfolio of Abbey National properties, acquired by Mapeley in 2000. This was combined leasehold and freehold portfolio, with approximately £500 million of freehold assets, alongside 900 leasehold office and retail premises. Since then, BT pursued a similar substantial freehold and leasehold portfolio in 2001 and this has been followed by the Liberty 1 & 2 portfolios, sold by RBS, in relation to which King Sturge have advised the purchaser, Ackerman. Since then, leasehold-only transactions, utilising the legal processes developed for the above transactions, have started to take effect, with the first major deal being a portfolio transferred by Rentokil to Sparklestone in 2006. The Corporate Real Estate team at King Sturge have advised buyers and sellers of such portfolios and are actively progressing various such instructions at present.
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Due diligence
Whether relating to a company merger, sale or acquisition, or just for better corporate governance, we can support in relation to all areas of due diligence surrounding real estate assets and liabilities, including Condition Surveys, Financial Budgeting and Valuations, Referencing and Database creation or a general Portfolio Health Check. Through the combination of expertise in our Corporate Real Estate, Financial Services and Corporate Finance groups, who work as a single bespoke team depending on the nature of the requirement, we can advise in relation to strategies for the freeing up of capital held in real estate assets, creation of joint venture and other off-balance sheet transactions and the disposal/transfer of risk for leasehold liability portfolios.
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Procurement strategies
We recognise that there are many ways for a corporate occupier to structure their estates management and facilities management supply chain. Some prefer the creation of a strongly centralised in-house model. Others have sought to slim down internally and now pursue an outsourced model. There is no single right answer. We can support a client in making such decisions in a Strategic Consulting capacity, utilising our expertise, gained across a range of industry sectors and over many years, presenting a business case, with costed and risk assessed recommendations.
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Space planning & utilisation
Efficient utilisation of space and creative space planning and design can drive significant value out of the real estate portfolio, at the same time as enhancing the quality of workspace for employees. At King Sturge we have in-house space architecture and design capability and can provide consultancy and benchmarking services to ensure that your portfolio is being used efficiently relative to industry peers. Alternatively, we can work with your own architects, designers or space planners to offer real estate advice supporting (or challenging) their conceptual ideas.
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Account management - portfolio wide
King Sturge provides the full range of account management services to both private and public sector corporate clients.
Private sector account management - links
Public sector account management - links
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Asset management - property specific
Our teams include experienced asset management surveyors who take pride in pursuing all opportunities to their fullest extent, maximising value through a strong combination of professional capability, market knowledge and negotiating approach. Where necessary, the wider Professional Services and Commercial Agency resources of King Sturge can be brought in to support the delivery of our advice to you.
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Financial budgeting & valuations
Real estate usually represents the second or third largest overhead to business. The accounting complexities caused by holding some assets as freeholds and others leasehold, and the various heads of expenditure across rent, rates, insurance, service charge and facilities management charges, gives rise to significant budgeting uncertainties for many corporate occupiers. We can support the corporate in the production of robust benchmarked budgets for all heads of expenditure and supplement this with the provision of valuations, of both freehold and leasehold assets and liabilities to fulfil accounting requirements including provision accounting. Where formal valuations are required, including for Due Diligence purposes, our Valuation group can provide specialist input.
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Change Management
Technological changes and the globalisation of our economy, mean businesses have to change and evolve at an ever faster pace. King Sturge can support business in a Strategic Consulting capacity, applying a systematic approach to ensure any property related changes are handled in a safe, efficient, consistent manner. We can apply our technology platforms, including Corspace, to ensure that the client is kept updated, critical paths are adhered to and key milestones are reached.
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Programme implementation
For clients with large portfolios, the implementation of a new programme across the business of has significant implications for the real estate portfolio. King Sturge personnel are conversant with advanced programme management protocols, allowing us to support a client in a Strategic Consulting capacity in relation to the delivery of such programmes.Examples have included the delivery of millennium compliance, sustainability and environmental programmes across managed portfolios, and supporting a client in relation to the implementation of new integrated business management and accounting software. The introduction of Energy Performance Certificates is currently creating considerable interest.
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Estates management
For those clients who have adopted the decentralised or outsourced model, King Sturge can provide a full range of estate management services, including Treasury Management, for portfolios across the United Kingdom.We create a dedicated Account Management team, led by a Client Partner and managed on a day-to-day basis by an Account Manager, drawing together appropriate expertise to reflect the size, geographical location and property type of the portfolio in question. Where necessary, the wider Professional Services and Commercial Agency resources of King Sturge can be brought in to support the delivery of our advice to you.
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Treasury management
A fundamental part of our Account Management service for many (but not all) clients is our ability to take control of the financial management associated with the real estate portfolio.Utilising our integrated Property Management and Accounting software, Tramps, we can take responsibility for payment of all rent, rates and service charge liabilities, on the due dates, taking advantage of any instalment arrangements that are available, to optimise cash flow. Equally, we can arrange for the collection of all financial liabilities from subtenants in a timely fashion. All collections and payments are driven directly from the verified property data held on the Tramps database, ensuring a resilience and accuracy. Regular monthly or quarterly reports can be provided to fulfil your own requirements, tying in with the Budgets if we have prepared these for you.
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Transaction management
Expansion or contraction of business brings with it the acquisition and disposal of property. This can be time-consuming and often stressful for the corporate process, particularly across a wide portfolio. The King Sturge Corporate Real Estate group acts as a transaction manager, overseeing the activity of agents, solicitors, planning consultants, surveyors and others involved in the transactional process, ensuring valuable time is not lost and every opportunity is seized, whilst keeping the client appraised of progress. We maximise our efficiency by drawing upon our technology solutions, allowing the client to review the status of any given transaction in real-time.
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CRE Project Management
Projects can range in size, from the site acquisition and subsequent construction of a new corporate headquarters, to the fit out of a unit shop or individual office floor. Whatever the extent of the project, King Sturge has the project management capability and expertise to ensure that it is conducted in a streamlined and efficient manner with the desired outcomes achieved within the timescales and the cost projections envisaged.
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Rent reviews and lease renewals
Where business premises are held on a lease, this inevitably gives rise to periodic rent reviews and lease renewals with the landlord, involving negotiations of a technical, legal and valuation nature. At King Sturge, we see these unavoidable negotiations as an opportunity to further the real estate portfolio with the business. Every rent review and lease renewal is taken as an opportunity to review the strategy for the property in the portfolio context, re-establish its status in the eyes of the business and through dogged professional determination, ensure that negotiations are optimised and hence value is created for the business. Our Lease Consultancy specialists will often take responsibility for individual reviews and renewals, reporting to the Account Manager or to the client directly depending on requirements.
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Business rating
In the United Kingdom, Business Rates represent a significant real estate outgoing for the corporate occupier. Our Business Rating team is able to advise in relation to all aspects of value and liability, whether for a single property or a significant portfolio. Where required, we can also take full control of the Treasury Management of your business rates liability, optimising your cash flow and minimising your own resource inputs.
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Insurance and health & safety
For the corporate occupier, real estate represents the workspace in which its business and employees function. No real estate, no business. Equally, the protection of the employees and assurance of their health and safety is of critical importance.King Sturge can support the corporate occupier in an account management capacity, liaising with your corporate insurance brokers, to provide real estate advice to define your insurance needs. We also work with various specialist health and safety organisations to define health and safety programmes, including initial risk assessment and subsequent management regimes.
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Service charge scrutiny
Service charge often represents a significant real estate outgoing, and one which is outside the direct control of the corporate, and in the hands of the landlord of their managing agent. King Sturge Corporate Real Estate team is able to use its significant expertise in the management of corporate portfolios, coupled with the understanding of best practice service charge management in our Asset Management group, to advise corporate occupiers on their service charge liabilities and seek to negotiate reductions where inappropriate levels of charge have been levied. As a firm, King Sturge are a leading representative in the Real Service initiative, a group constituted by major landlords and their managing agents, seeking to ensure best practice in the delivery of service charge management. We have also contributed to the pan industry Service Charge Code and the Code of Leasing Practice, both aimed at improving standards and transparency throughout the leasing and management process.
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P&M/Capital allowances
King Sturge Plant & Machinery can advise you on all aspects of value including capital allowances.
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Repair, maintenance & dilapidations
In the United Kingdom, it is usual for the occupier tenant to have responsibility for repair and maintenance under their lease. This brings with it the potential for significant financial burdens and often, if you are not well-prepared, can produce major surprises.Whether through a Portfolio Health Check, part of a Due Diligence process, in an Account Management capacity or as an ad hoc project, King Sturge can assist you in undertaking condition surveys, reporting to you in relation to repairing requirements and preparing costed budgets to assist in your financial budgeting. Our building consultancy team can provide detailed professional support in relation to dilapidations claims and disputes, as well as the project management of more complex construction, refurbishment or other projects.
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Secondments
We recognise that there are occasions when you need qualified and experienced resource, and you need it fast. Recruitment takes time, and attracting the right calibre of person for what might be a short term project, may not be feasible.For us, the opportunity to second staff into a client organisation for a period of time is one we welcome. It gives our staff valuable new and wider experience and gives King Sturge, as a firm, a chance to further our understanding of your business and the way you work, so we can improve our future service to you.
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