Marks & Spencer rates SGP
SGP Property & Facilities Management has been awarded a new ratings liability contract with leading retailer Marks & Spencer. M&S is one of the UK’s largest retailers with over 600 stores in the portfolio, 22 stores located in Northern Ireland and a further 19 stores in Eire.
Following a competitive tender process the contract was awarded on 1st April 2010, coinciding with the 2010 rating list re-evaluation. SGP holds the contract jointly with Philip Long & Co who will survey and undertake the rateable value assessment appeals.
‘We are very pleased to have the opportunity to work with one of the most respected retailers in the UK. The award of this contract recognizes the significant effort we employ in scrutinising rating liabilities to reach positive outcomes for our clients, for example on empty relief applications,’ said Kevin Elliott, MD of SGP. ‘We are working closely with our colleagues at Philip Long & Co to ensure that we deliver maximum value for the Marks and Spencer property portfolio.
SGP acquires ex-Jarvis PFI contracts
SGP is pleased to announce the completion of the acquisition of 3 PFI contracts, together with 2 related Special Purpose Companies (SPCs) from the administrators of Jarvis Plc.
The three contracts are: Sir John Colfox School in Bridport, Dorset, Cardinal Heenan High School in Leeds and the West Berkshire Community Hospital in Newbury. 86 staff have transferred in to SGP and each of the contracts has a minimum of 15 years on the contract term remaining.
In addition to the contracts already acquired we have reached agreement with Jarvis' administrators to manage, under licence, a further 5 FM contracts, together with the related SPCs, pending acquisition. These 5 contracts employ some 160 staff and also have over 15 years on the contract term remaining. We are hopeful in bringing these to a successful conclusion within the coming weeks.
The aggregate consideration for all of the 8 contracts and 7 related SPCs is expected to be £3.0 million in cash on completion and will be financed from existing bank facilities, of which £1.2 million plus costs has been incurred to date.
The three completed contracts are: Sir John Colfox School in Bridport, Dorset, Cardinal Heenan High School in Leeds and the West Berkshire Community Hospital in Newbury.
SGP anticipates the acquisitions to be earnings enhancing in the second half of 2010 and beyond. The 8 contracts will add some 35% to SGP revenue (excluding customer recharges) in a full year and will significantly increase its presence in the PFI market. Following the acquisition of the 8 contracts the proforma revenue generation from long term PFI contracts is expected to be some 60% of the total revenue (excluding customer recharges) of SGP.
