The government is progressing with plans to outsource the bulk of its 3.4m sq ft Northern Ireland estate.
A bid process will be started in a matter of months for the 20-year total property outsourcing contract.
This week, the deadline fell for financial advisers on the government’s panel to bid for the contract to implement the outsourcing plans.
PricewaterhouseCoopers, Deloitte and Ernst & Young are all expected to bid for the advisory role and are believed to have formed consortia with agents and lawyers.
The deal, worth around £500m, will transfer the ownership and lease liabilities of more than half of the government’s £260m Northern Ireland estate to a private sector partner for 20 years. The portfolio is scattered across central and greater Belfast and includes the Stormont estate, which could form part of the outsourcing deal. It houses 18,726 civil servants.
Chesterton and Deloitte have been working for the past nine months on a feasibility study for the outsourcing. It comes as all parts of government face increasing pressure to become more efficient and cut costs.
Land Securities Trillium and Mapeley are likely to head the interested parties.
LandSec Trillium has just been selected for the Driver & Vehicle Licensing Agency’s outsourcing. It will manage the DVLA’s entire 969,000 sq ft UK estate in a 20-year deal and carry out an extensive refurbishment of its 1960s Swansea headquarters.
References: EGi News 24/01/05
