John Jones, GVA’s chairman of property management consultancy, has been put on garden leave after stating his intention to undertake a management buyout of the division.
It is understood that no formal business proposal was submitted or put forward but that it was verbally stated by Jones internally that undertaking an MBO was his intention, leading to the company making the move.
Senior director Jones has been with the company for almost 26 years, since 1992.
GVA’s property management division employs around 250 people and manages a portfolio with over 18,000 occupiers.
The portfolio it manages has a combined annual rent roll of over £500m and the business generates more than £20m of revenue.
It is led by head of property and centre management and senior director, Lisa Riva, who has been at GVA alongside Jones since 1997.
The company has been undertaking a strategic review of the business to look at making it more profitable, efficient and effective, assessing its leadership and examining its processes.
GVA chief executive Gerry Hughes said: “Property management is a core and growing part of our business. We will continue to provide best in class service and value for our clients.”
Although property management is not a highly profitable business area by margin, the recurring and stable income that it generates for GVA and for all firms means that it is generally seen as fundamental to the long-term success of large advisory businesses.
For this reason, when undertaking valuations of property management departments, higher multipliers are applied to them than those that produce more unreliable profits, such as investment departments.
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