Land Securities announced that its property outsourcing business, Land Securities Trillium, has yesterday agreed a major new deal with Norwich Union to manage and improve its core occupational estate. The 25-year deal involves the transfer of 111,500 m² of office accommodation with an investment value in excess of £150 million and Land Securities Trillium investing £92 million in the refurbishment of Norwich Union’s 30,890 m² Norwich headquarters, which is to be carried out by Land Securities’ Development business unit.
Land Securities Trillium will receive an initial income of circa £20 million per annum from the contract, which will increase over the next three years as the Norwich project is completed.
Norwich Union´s three main objectives in undertaking this deal are to achieve a consistently high standard of accommodation throughout the country; to transfer the risk associated with delivering necessary improvements to achieve this high standard; and to bring future cost certainty to their core property portfolio. As the UK market leader in property outsourcing, Land Securities Trillium is well placed to achieve these objectives. It currently manages over 8,400 client properties throughout the UK, has delivered substantial improvements to clients over the past six years and provides clients with property costs that are transparent and certain.
Ian Ellis, Chief Executive of Land Securities Trillium, said, 'We are delighted to have commenced this long term partnership with Norwich Union. As with all our property outsourcing transactions, this has been tailored to meet the client’s business drivers and demonstrates how, as a Group, we can provide a bespoke property solution. The deal with Norwich Union is about managing and improving their properties and delivering better workplaces for their employees.”
Stuart Smith, Director of Occupied Property Strategy of Norwich Union, said, 'We are delighted to be working with Land Securities Trillium to provide a better environment for our staff. The transfer of these properties to Land Securities Trillium will allow Norwich Union to focus on our core business of delivering service to our customers.”
Source: Land Securities