Service Charge Expenditure Report Palace Street

Transcription

1 London

2 Land Securities, meet Landsec Our new brand isn t just a new name and logo, it s founded on a brand idea and a philosophy that moves us on from the idea of placemaking into a focus on customers and experiences. Everything is experience Anchor-Meet 2

3 Garret O Neill, One New Change Anchor-Welcome Welcome to Landsec 3

4 Overall the reconciliation for the year ending 31 March 2017 is 1.2% below the forecasted budget. Welcome to the 2016/17 Service Charge Reconciliation Booklet for 16 Palace Street. As with previous years, this booklet has been prepared to provide our customers with the details of actual service charge expenditure over the last financial year. Overall the reconciliation for the year ending 31 March 2017 is 1.2% below the forecasted budget and the main areas of variance are outlined within this booklet. During the latter part of 2016 and early part of 2017 we re-tendered across our main service contracts delivering services to our London portfolio of properties. The primary reason, as always, is to ensure that we are securing the highest levels of service at the most cost efficient contract value. Additionally, over the past twelve months we have successfully completed the refurbishment of the building shower rooms. Karen Steer Operations Manager I hope you find the information in this booklet useful and that it meets the level of detail you require. If you do however have any other specific needs or questions about the information provided, please do not hesitate to contact me. Warm regards Karen Steer Operations Manager 4

5 Inside this document Certification Our Obligations As a responsible Landlord we have a duty of care to act with professional care, diligence, integrity and objectivity in managing the provision of services within the property. For best practice, we endeavour to provide our Customers with the following key elements; Service Charge Customer Statement Service Charge Expenditure Report Service Charge Allocation and Service Charge Operational Overview of Variances Actuals This report has been produced by Landsec, the Landlord of the property, and relates to the service charge period of 1st April st March This service charge statement was prepared on an accruals basis. Royal Institution of Chartered Surveyors (RICS) Code of Practice, Third Edition This report has been produced having regard to the best practice guidelines for service charges in commercial property and endorses the principles set out in the third edition of the RICS Code of Practice. Both Landsec and the Tenant are still bound by the existing lease terms, which take precedence over the Code of Practice, but would encourage our occupiers, like ourselves, to be guided by The Code wherever possible. Schedule of Assumptions and Exclusions Empty Unit Voids and Caps - We pay the service charge for any void or empty unit and any service charge contribution which is reduced as a result of any form of concession or capping. Service Charge Exclusions - The service charge costs will NOT include: Initial costs in relation to the original design and construction Setting up costs that are part of the original development Improvement costs above normal maintenance, repair or replacement except where an improvement can be justified to provide benefit to the occupiers Redevelopment costs Costs which relate to individual occupiers Payment of Interest - It is our policy not to apply interest to on-account service charge contributions. However, we do not apply any of our bank charges back to the service charge. VAT The Landlord has chosen to opt to tax. All service charge expenditure is shown exclusive of VAT. VAT will be charged at the appropriate rate on all service charge payments demanded/ invoiced by the Landlord. Certification Period 1 April 2016 to 31 March 2017 Building I hereby certify that the attached statement of reconciled service charge expenditure records the true cost to the Landlord of providing the services to the property for the period 01/04/2016 to 31/03/2017, in accordance with the terms of the lease and, where practicable, the RICS Code of Practice Service Charges in Commercial Property (Third Edition). At year end there are amounts totalling 88, which have been provided for in the service charge expenditure - these allowances have been made to account for expenditure where invoices have not been received. Signed: Semiha Richens Senior Finance Manager - London Landsec 5

6 Alia Hashem, N0VA, Victoria Anchor-Schedules Explanation of Schedules 6

7 Explanation of the Schedules Schedules The service charge schedules are set out as follows; OFFICES RETAIL Interproperty Transfers via: ESTATE LOADBAY PROMOTIONS RAMP POST ROOM CAR PARK Services which benefit all office customers within the property. Services which benefit the retail customers only. Services which benefit all office customers within the property. Services which benefit users of the Cardinal Estate loading bay Services which benefit retail customers only Services which benefit all office customers within the property. Services which benefit all office customers within the property. Services provided to the car park area and contributed to by users only. The cost summaries on the following pages show the actuals for the service charge year and identify the allocation of costs across the various elements of the property (i.e. schedules). Where there is more than one schedule there is a separate column on the Allocation of Costs Summary for each. This is to ensure that costs are appropriately allocated and that customers only contribute toward the services from which they benefit. 7

8 Perry Locke, 62 Buckingham Gate Anchor-Actuals Actuals

9 Actuals - Overview Year Ending 31 March ,607,600 Total Actuals Figures rounded to the nearest decimal point. Management and Insurance 178, % Utilities 279, % Soft Services 345, % Hard Services 473, % Other Contributions 330, % 9

10 Actuals - Expenditure Summary Year Ending 31 March 2017 Service Charge Expenditure Schedule Management Actual ( ) Budget ( ) Variance ( ) Variance (%) Actual ( ) Management Fees 50,699 50, % 52,153 Site Management Resources 113, ,304 5, % 95,650 Health, Safety & Environmental 9,046 9,531 (485) (5.1%) 8,530 Management Sub-total 172, ,534 5, % 156,333 Utilities Electricity 201, ,994 (19,624) (8.9%) 211,200 Gas 47,832 48,930 (1,098) (2.2%) 53,557 Fuel Oil (Heating) 0 5,000 (5,000) (100.0%) 0 Water 29,820 21,244 8, % 19,653 Utilities Sub-total 279, ,167 (17,146) (5.8%) 284,409 Soft Services Security 228, ,297 4, % 209,236 Cleaning & Environmental 116, ,951 (16,167) (12.2%) 127,769 Soft Services Sub-total 345, ,248 (11,535) (3.2%) 337,005 Hard Services Mechanical & Electrical Service 382, ,279 7, % 321,079 Lift & Escalators 19,406 25,997 (6,591) (25.4%) 23,704 Suspended Access Equipment 12,351 17,004 (4,654) (27.4%) 13,847 Fabric Repairs & Maintenance 59,002 48,973 10, % 19,772 Hard Services Sub-total 473, ,254 6, % 378,401 Insurance Engineering Insurance 6,154 6,629 (475) (7.2%) 8,169 Insurance Sub-total 6,154 6,629 (475) (7.2%) 8,169 Exceptional Expenditure Major Works % 115,033 Exceptional Expenditure Sub-total % 115,033 Other Contributions Interproperty Transfers 330, ,115 (1,740) (0.5%) 346,071 Other Contributions Sub-total 330, ,115 (1,740) (0.5%) 346,071 Total 1,607,600 1,626,947 (19,347) (1.2%) 1,625,421 10

11 Actuals - Expenditure Summary Year Ending 31 March 2017 Allocation of Costs (1 of 2) TOTAL CARPARK ESTATE LOADBAY OFFICES POSTROOM PROMOTIO RAMP RETAIL Management Management Fees 50, , ,039 Management Fees 50, , ,039 Site Management Resources 113, , ,169 Staff Costs 73, , ,053 Site Offices/Accommodation 39, , Health, Safety & Environmental 9, , Health & Safety 9, , Management Sub-Total 172, , ,208 Utilities Electricity 201, , Electricity Lighting 54, , Electricity - Lifts/Escalators 31, , Electricity - Heat/Aircon/Comfort Cooling 103, , CRC Electricity 11, , Gas 47, , Gas 43, , CRC Gas 4, , Water 29, , ,001 Water 29, , ,001 Utilities Sub-Total 279, , ,001 Soft Services Security 228, , Security 228, , Cleaning & Environmental 116, , Cleaning 81, , Waste Management 17, , Housekeeping / Sundry Costs 12, , Landscaping (External) 1, , Seasonal Decorations 3, , Soft Services Sub-Total 345, ,

12 Actuals - Expenditure Summary Year Ending 31 March 2017 Allocation of Costs (2 of 2) TOTAL CARPARK ESTATE LOADBAY OFFICES POSTROOM PROMOTIO RAMP RETAIL Hard Services Mechanical & Electrical Services 382, , ,403 Fire Precautions Maintenance 18, , ,059 Fire Precautions Repairs 2, , General Engineering Maintenance 54, , General Engineering Repairs 25, , Lighting/Electrical Maintenance 12, , Lighting/Electrical Repairs 18, , Heat/Air Con/Comfort Cooling Maintenance 188, , Heat/Air Con/Comfort Cooling Repairs 62, , Lift & Escalators 19, , Lift/Escalator Maintenance 18, , Lift/Escalator Repairs Suspended Access Equipment 12, , Suspended Access Equipment 12, , Fabric Repairs & Maintenance 59, , Internal Maintenance 11, , Internal Repairs 35, , External Maintenance 6, , External Repairs 5, , Hard Services Sub-Total 473, , ,403 Insurance Engineering Insurance 6, , General Engineering Insurance/Inspection 6, , Insurance Sub-Total 6, , Other Contributions Interproperty Transfers 330,375 23, ,832 10, ,128 21,566 29,520 0 Interproperty Transfers 330,375 23, ,832 10, ,128 21,566 29,520 0 Other Contributions Sub-Total 330,375 23, ,832 10, ,128 21,566 29,520 0 Total 1,607,600 23, ,832 10,583 1,253,762 28,128 21,566 29,520 23,462 12

13 Flossy Nwofor, 100 Victoria Street Anchor-Apport Service Charge 13

14 Service Charge Year Ending 31 March 2017 FACTORS ACTUALS Estate Loading Estate Loading Address Costs Office Retail Car Park Postroom Bay Promotions Ramp Costs Office Retail Car Park Postroom Bay Promotions Ramp TOTAL MSU Cardinal Place - 10 Cardinal Walk 26.91% 0.00% 92.52% 0.00% 0.00% % 92.65% 26.91% 58,358-21, ,583 19,981 7, ,574 Part Ground Floor 1.20% 1.70% 0.00% 0.00% 1.72% 0.00% 0.00% 1.20% 2,609 21, ,727 1st Floor & 4 Car Spaces 14.63% 20.63% 0.00% 14.81% 20.91% 0.00% 0.00% 14.63% 31, ,633-3,518 5, , ,069 2nd Floor & 3 Car Spaces 12.84% 18.11% 0.00% 11.11% 18.36% 0.00% 0.00% 12.84% 27, ,091-2,638 5, , ,534 4th Floor & 2 Car Spaces 12.85% 18.12% 0.00% 7.41% 18.37% 0.00% 0.00% 12.85% 27, ,236-1,759 5, , ,823 5th Floor & 3 Spaces 9.64% 13.60% 0.00% 11.11% 13.78% 0.00% 0.00% 9.64% 20, ,466-2,638 3, , ,732 Basement Storeroom % 0.21% 0.00% 0.00% 0.00% 0.00% 0.00% 0.15% 326 2, ,027 Part Ground Floor & Car space 5.94% 8.38% 0.00% 11.11% 8.50% 0.00% 0.00% 5.94% 12, ,098-2,638 2, , ,770 Unit 21A Crescent Café 1st Floor 2.14% 0.00% 7.34% 0.00% 0.00% 0.00% 7.35% 2.14% 4,630-1, , ,567 Basement Storeroom % 0.74% 0.00% 0.00% 0.00% 0.00% 0.00% 0.52% 1,133 9, ,525 Basement Storeroom % 0.32% 0.00% 0.00% 0.00% 0.00% 0.00% 0.23% 498 4, ,623 Roof Level Store Room 0.04% 0.00% 0.14% 0.00% 0.00% 0.00% 0.00% 0.04% Basement Storeroom % 0.07% 0.00% 0.00% 0.00% 0.00% 0.00% 0.05% Car Space % 0.00% 0.00% 3.70% 0.00% 0.00% 0.00% 0.00% Car Space % 0.00% 0.00% 3.70% 0.00% 0.00% 0.00% 0.00% Car Space % 0.00% 0.00% 3.70% 0.00% 0.00% 0.00% 0.00% , 3rd Floor C/S 96/97/ % 18.12% 0.00% 11.11% 18.36% 0.00% 0.00% 12.85% 27, ,151-2,638 5, , ,605 Car Space % 0.00% 0.00% 3.70% 0.00% 0.00% 0.00% 0.00% Car Space 63,64,65,67, % 0.00% 0.00% 18.52% 0.00% 0.00% 0.00% 0.00% , , % 100% 100% 100% 100% 100% 100% 100% 216,832 1,253,762 23,462 23,746 28,128 10,583 21,566 29,520 1,607,600 14

15 Jordon Joseph, Anchor-Variances Summary of Variances 15

16 Year Ending 31 March 2017 Service Charge Actuals % Variance against forecast -1.2% -10% to -5% -5% to 0% 0% to +5% +5% to +10% 1,626,947 Forecast ( ) ,607,600 Actuals ( )

17 Year Ending 31 March 2017 Variances listed below are where actual spend was +/- %5 or +/- 20k to budget. There are positive and negative variances contained within the summary schedule, the major financial variances are explained. Management Utilities 167, ,167 Budget ( ) Budget ( ) 172, ,021 Actual ( ) Actual ( ) 5,292 ( 17,146) Variance ( ) Variance ( ) Site Management Resources Following the disposal of assets across the London portfolio there has been a small increase across the estate during this financial year due to re-allocation of costs. Health, Safety & Environmental Forecasted budget allocation was not required, resulting in a saving in this area during the 2016/17 year. Electricity Energy reduction measures have contributed to lower electricity consumption and a saving against forecasted budget this financial year. Water Water includes circa 8k from February 2016 resulting in an overspend to budget. Actual consumption for the 2016/17 period was in line with forecasted figures. Fuel Oil Contingency figure under this heading which was not required during this budget year. 17

18 Year Ending 31 March 2017 Variances listed below are where actual spend was +/- %5 or +/- 20k to budget. There are positive and negative variances contained within the summary schedule, the major financial variances are explained. Soft Services Hard Services 357, ,254 Budget ( ) Budget ( ) 345, ,510 Actual ( ) Actual ( ) ( 11,535) 6,256 Variance ( ) Variance ( ) Cleaning & Environmental We have seen significant savings in this area following re-tender of Cleaning and Landscaping contracts. Lift & Escalators There are significant savings in this area, following the successful re-tender of the lift contract for the London portfolio. Suspended Access Equipment Forecasted repair budget for access equipment was not required during this financial year, providing a saving in this area. Fabric Repairs & Maintenance The small overspend in this area is partly attributable to the re-carpeting of the staircases completed during this year, along with the statutory fabric building survey. 18

19 Year Ending 31 March 2017 Variances listed below are where actual spend was +/- %5 or +/- 20k to budget. There are positive and negative variances contained within the summary schedule, the major financial variances are explained. Insurance 6,629 Budget ( ) 6,154 Actual ( ) ( 475) Variance ( ) We have seen a significant reduction in insurance costs this year further to a review of our London portfolio policy. 19

20 Contacts Publication No SCE16/17 Karen Steer Operations Manager Landsec, London SW1E 5JD D/L: +44 (0) Mobile: +44 (0) landsec.com Andy Slatter General Manager Landsec, London SW1E 5JD D/L: +44 (0) Mobile: +44 (0) landsec.com Ann-Marie Khan Operations Director Landsec 100 Victoria Street, London SW1E 5JL D/L: +44 (0) Mobile: +44 (0) landsec.com Land Securities Group PLC 100 Victoria Street, London SW1E 5JL +44 (0) landsec.com