Decision

The Director of
Regeneration and Place has agreed to approve the award of a
contract to Jones Lang LaSalle Limited via the Crown Commercial
Services Framework for Estate Management Services, Lot 1 Total
Estate Management, with a contract value of £223,500 for a
term of 18 months.
 

Reasons for the decision

In May 2023 the
Council acquired the Grange and Pyramids Shopping Centres as part
of the Council’s wider regeneration aspirations.  As part of the purchase the Council commissioned
the management company, Jones Lang LaSalle Limited (JLL), which was
used by the previous owner, to provide a range of services for the
facilities, property and asset management and rating services for
the facility.  This was to ensure
continuation of service and also enabled the Council to meet the
short timeframe for purchase.
 
The contracts for
these services expired on 3rd May 2024 and in respect of the
facilities an asset management functions a further six month
extension was agreed and more recently a further contract has been
awarded until November 2025.  For the
Asset Management and Rating services a six month extension to the
original contract was agreed, but it appears that it was never
implemented.  In order to cover costs
already incurred and also to retain the service moving forward, the
Council is seeking to implement new a contract to cover the period
from May 2024 until November 2025 to bring it back in line with the
other functions.
 
Officers are working
on a competitive procurement process to provide one contract which
would cover the Shopping Centre, Mallory, Irvine, The Hythe and the
Europa Centre and potentially any other properties the Council may
acquire which require asset, property and facilities management
support.  This will take some time to
put in place, so it is proposed that a direct award contract via
the Crown Commercial Services (CCS) Framework for Estate Management
Services, Lot 1 Total Estate Management (Ref - RM6168) is put in
place with JLL for a period of 18 months.  This will cover the period from 3rd May 2024 to
3rd November 2025 in order that continued service can be provided
in the interim period.
 
JLL has provided a fee
proposal as follows:
 

Asset Management
 
£5,000 per month
(£60,000 per annum) plus either:
 

Where JLL have
oversight only of transactions but do not undertake the initial
negotiations as these are undertaken by the letting agents or
lease advisory
consultants. For the avoidance of doubt these fees will be paid in
addition to any specialist letting/lease advisory fees.

 
In addition there will
be additional costs for the following services:
 
Lettings, stepped
rents, turnover rents, surrenders, value -add initiatives,
temporary lettings/renewals, administrations and rent payment
plans, lease renewals, lease regear, rent reviews,
licences,  tenancy at Wills.
 

Rate Liability/Account Management
 
 A fixed fee of £5,000 per annum plus VAT.
 
The overall contract
is capped at £223,500 and the fees set out above are as per
the previous agreement.
 

Alternative options considered

As the
existing contract has expired, the Council needs to continue to
work with JLL until such time as a new contract can be
procured.