Capita Symonds and DTZ last two standing in race for contract to manage around £400m of National Grid estate
Consultants Capita Symonds and DTZ are vying for a contract to take over the management of around £400m worth of the National Grid’s estate, with a decision on which firm has bagged the job expected imminently.
Building understands the consultants are the last two standing in the race for the National Grid contract, which will see the winning bidder take over the management of around 560 of the electricity infrastructure operator’s properties, thought to be valued at around £400m.
The partner will be responsible for managing nationally all lettings, asset management, small and medium site sales as well as and town planning work for sites, National Grid said.
Announcing the procurement last November, National Grid said the company had decided to move away from working with multiple portfolio advisers, each covering different parts of the country and different sectors, and instead take on a partner that would act as an “integrated real estate adviser”.
National Grid said this would “improve efficiency by reducing operating costs, maximising rental income, accelerating site sales and delivering overall portfolio performance improvements”.
“Working with one adviser means we can also develop a more comprehensive and complete vision of the entire portfolio, which will allow us to identify strategic portfolio opportunities,” National Grid said.
National Grid’s estate is made up of 600 surplus brownfield sites, many of which were once former gasworks - the around 40 sites not part of the contract offer more high value opportunities and will remain within the management of the National Grid’s joint venture model.
National Grid has said this will focus on delivering greater value from sites such as Southall, Isle of Grain, Battersea and Northfleet working with private sector partners, with opportunities being prepared to bring them to the market this year.
Over the past 15 years, National Grid has been working to clean up its estate, secure planning consents, remediate sites and undertake site sales. To date this has generated around £1.7bn of proceeds.
A National Grid spokesman said: “Following an extensive selection process, National Grid will be in a position to announce the selected company in late April 2012.
“National Grid is not in a position to announce its choice or comment on any speculation before the process has been concluded.”