John McCready, the head of the government’s new property unit, said “every option is on the table” as he called on the private sector to come forward to help his drive to cut the government’s £25bn annual property running costs by at least a fifth.
Speaking at a Movers and Shakers breakfast at the Dorchester hotel in central London this morning, McCready said private sector’s expertise and skill would be crucial.
He told attendees that too many companies were proposing leaseback arrangements that would actually push up his cost of administration.
However, he praised the private sector for its innovation in property management, adding: “The real issue today is not about capital values it’s about occupancy. The private sector has transformed itself through space utilisation. There is a real ability for the private sector and the public sector to work together.”
Responding, Chelsfield chief Sir Stuart Liptoin said: “The government is in need of a new business plan. There is a real opportunity of defining what we do. I’m looking for John to lead a revolution. He should assemble the best team he can with a few troublesome outsiders.”
Land Securities chief executive Francis Salway said government would best cut costs by focusing on density of occupation. But Salway warned: “You can’t radically increase occupational density without spending money on refitting.”
He also urged local authority chief executives to embrace developement and said council support was crucial in deciding where to make investments
damian.wild@estatesgazette.com
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