Chancellor George Osborne is expected to tomorrow confirm plans to create a centrally run property vehicle overseen by the Government Property Unit and focusing initially on the estates in
The government’s Comprehensive Spending Review will update on proposals first committed to by the previous Labour government in its final budget.
It is understood that before the end of the year the GPU, headed by John McCready, will announce private sector partners that it has engaged to work alongside the central property vehicle, which will be launched next April.
Former Labour Chancellor Alistair Darling committed to the creation of “strategic property vehicles” by April 2011 in the final Budget of the last Labour administration.
It is understood that the GPU is committed to launching a vehicle based around the Westminster estate by that date. The government’s cluster of buildings in Bristol are also set to be included with the Manchester estate being lined up as the third location to come forward at a later date.
McCready’s Government Property Unit includes former Land Securities directors Robyn Pyle, Robert Heskett and John Tauwhare as well as HM Treasury economist Claire Dartington and property lawyer Richard Fidler and around 20 staff brought over from the Office of Government Commerce.
It has been in talks with leading facilities management groups, property advisers and property developers about the opportunity to work on the proposals.
It has also begun sounding out legal advisers about structuring a brief in order that private sector partners can bid for work and be selected before the end of the year.
It is understood that FM specialists in government property including Telereal Trillium, Serco and Mitie are being considered as strategic partners as well as leading property agents.
Separately the GPU is working up plans to unlock parts of the government’s circa 10m sq ft office estate in the capital via the exercise of lease breaks to create major development sites and has been considering how the opportunities would be brought forward in joint ventures.
First under review is thought to be a redevelopment of the Department for Culture, Media and Sport’s current departmental headquarters in
A
paul.norman@estatesgazette.com
To access all EGi news stories and commercial property data sign up for a free trial today, or visit the subscription options page to find out more.
