Team Valley, Gateshead

Transcription

1 Team Valley, Gateshead Service Charge Reconciliation 01 April March 2015

2 Service Charge Reconciliation Contents Executive Summary Service Charge Variance Summary Property Cost Summary Explanation of Variances Additional Information Apportionment Schedule Contacts

3 Executive Summary For the year ended 31 March 2015, the service charge out-turn for Retail World, Team Valley, Gateshead was:- Actual Expenditure 280,433 Budget expenditure 364,045 Variance ( 83,612) I am writing to inform you that at the conclusion of the service charge period, the actual expenditure was 280,433 which equates to an under-spend of 83,612 (23%) on the budget for the year. This is primarily as the result of the budgeted cost for the forward funded car park resurfacing exercise being fully paid prior to the start of the service charge period Please find on the following pages, the Service Charge Summary and an explanation of the variances from the Service Charge Budget. Robin Brydon Management Surveyor

4 Service Charge Variance Summary Actual ( ) 2014 Variance ( ) 2014 Variance (%) 2014 Budget ( ) 2014 Actual ( ) 2013 Management Fees 18, % 18,636 17,076 Site Management Resources 23,778 (1,000) (4.0)% 24,778 21,365 Health, Safety & Environment % Management 43,272 (749) (1.7)% 44,021 39,347 Electricity 11,611 (9,080) (43.9)% 20,691 16,530 Water % Utilities 11,894 (8,797) (42.5)% 20,691 16,879 Security 66,196 2, % 63,850 64,594 Cleaning & Environmental 77,268 (13,887) (15.2)% 91,155 70,298 Soft Services 143,464 (11,541) (7.4)% 155, ,892 Mechanical & Electrical Service 7,993 (7,577) (48.7)% 15,570 20,997 Fabric Repairs & Maintenance 14,974 (1,034) (6.5)% 16,008 22,268 Hard Services 22,967 (8,611) (27.3)% 31,578 43,265 Income from Commercialisatio (2,521) 1,479 (37.0)% (4,000) (2,868) Income (2,521) 1,479 (37.0)% (4,000) (2,868) Major Works 54,078 (48,922) (47.5)% 103, ,039 Other Exeptional Items 7,279 (6,471) (47.1)% 13,750 10,467 Exceptional Expenditure 61,357 (55,393) (47.4)% 116, ,506 Special Unit Account (600) % (600) (600) Special Unit Contra % TOTAL 280,433 (83,612) (23.0)% 364, ,021

5 Property Cost Summary Management Fees 18,636 18,636 0 Management Fees 18,636 18,636 0 Staff Costs 23,778 23,778 0 Site Management Resources 23,778 23,778 0 Health & Safety Health, Safety & Environmental Management 43,272 43,272 0 TOTAL ALL SPECIAL UNIT Electricity - Lighting 9,862 9,862 0 Electricity Tax CRC 1,749 1,749 0 Electricity 11,611 11,611 0 Water Water Utilities 11,894 11,894 0 Security 66,196 66,196 0 Security 66,196 66,196 0 Cleaning 49,235 49,235 0 Waste Management 3,408 3,408 0 Housekeeping / Sundry Costs 1,011 1,011 0 Landscaping (External) 23,614 23,614 0 Cleaning & Environmental 77,268 77,268 0 Soft Services 143, ,464 0 General Engineering Maintenance 1,892 1,892 0 Lighting / Electrical Maintenance 8,478 8,478 0 Lighting / Electrical Repairs (2,377) (2,377) 0 Mechanical & Electrical Services 7,993 7,993 0 External Maintenance 14,974 14,974 0 Fabric Repairs & Maintenance 14,974 14,974 0 Hard Services 22,967 22,967 0 Promotional Income (2,521) (2,521) 0 Income from Commercialisation (2,521) (2,521) 0 Income (2,521) (2,521) 0 Major Building Works 54,078 54,078 0 Major Works 54,078 54,078 0 Third Party Costs 7,279 7,279 0 Other Exeptional Items 7,279 7,279 0 Exceptional Expenditure 61,357 61,357 0 Sub Total 280, ,433 Special Unit Account (600) 600 Grand Total 280, ,

6 I hereby certify that, according to the information available to me, the attached statement of service charge expenditure records the true cost to the landlord of providing the services to the property for the period. Signed Andy Williams, Senior Finance Manager Retail For and on behalf of Robin Brydon

7 Explanation of Variances Electricity 11,611 20,691 ( 9,080) (43.9%) There has been a significant underspend on the account for electricity supply as a result of actual consumption levels being much lower than those that were forecast. Security 66,196 63, % The budget for the Euro Car parks contract was set slightly less than required and there was also the need for additional hours over and above those contracted. This led to the slight overspend on the overall security budget. Cleaning & Environmental 77,268 91,155 ( 13,887) (15.2%) The budgeted provision of 15,000 for a proposed back of house/centralised tenant waste management initiative was not utilised as there was not sufficient support from occupiers who continued to use their own nationally appointed contractors. Mechanical & Electrical Services 7,993 15,570 ( 7,577) (48.7%) The cost of the lighting survey was significantly lower than the figure that we originally budgeted for due to a competitive tender exercise being undertaken. There have also been other savings made against the budget. Major Works 54, ,000 ( 48,922 (47.5%) The savings under this heading relate to the budgeted cost of year 4 of the car park resurfacing exercise which was actually fully recovered prior to the start of the service charge year as referenced in the Executive Summary. Other Exceptional Items 7,279 13,750 (6,471) (47.1%) This cost heading relates to the service charge payable to the Head Landlord and covers services provided across the wider Team Valley Trading Estate. The budget was set based on the previous year s actuals but the 2014/15 actuals only reflect the on account charges.

8 Additional Information Accounting Principles This service charge statement was prepared on an accruals basis and all figures are shown net. Land Securities Plc has chosen to opt to tax Retail World Team Valley. Apportionment Service Charge expenditure is apportioned according to gross internal ground floor area. Service Partners Key services are provided by the following service providers: Service Service Partner Contract Duration Next Retender Cleaning & Landscape Maintenance Litterboss 3 years 2016 Parking Controls Euro Car Parks On-going N/A Security - CCTV monitoring, mobile patrols Valley Watch On-going N/A and gate locking Lighting maintenance CDL 5 years Out to tender

9 Apportionment Schedule Tenant Address Factors All Tenants (Area) Sq ft All Tenants Special Unit TOTAL 279, , Forecast All Tenants Special Unit TOTAL Homebase Limited Unit 1 Retail World 46,188 33,448 33,448 DSG Retail Limited Unit 2 (New) Retail World 29,050 21,037 21,037 Hobbycraft Trading Limited Unit 2A (New) Retail World 10,031 7,264 7,264 Property Portfolio (No 15) Limited Unit 3 Retail World 15,040 10,892 10,892 Wren Living Limited Unit 4 Retail World 10,032 7,265 7,265 Vacant Unit 5 Retail World 9,923 7,186 7,186 New Look Retailers Ltd Unit 6 Retail World 9,986 7,232 7,232 Asda Stores Limited Unit 7A1 Retail World 20,007 14,489 14,489 GPS (Great Britain) Limited Unit 7A2 Retail World 7,986 5,783 5,783 Everything Everywhere Ltd Unit 7A3 Retail World 2,010 1,456 1,456 Vacant Unit 7A4 Retail World A Share & Sons Ltd Unit 7B Retail World 10,123 7,331 7,331 Marks & Spencer Simply Foods Limited Unit 7C Retail World 10,123 7,331 7,331 B&M Retail Limited Unit 8 Retail World 19,044 13,791 13,791 Storey Carpets Limited Unit 8A Retail World 11,280 8,169 8,169 Boots UK Limited Unit 9 Retail World 12,552 9,090 9,090 Poundstretcher Properties Ltd Unit 10 Retail World 10,133 7,338 7,338 Sportsdirect.com Retail Limited Unit 11 Retail World 10,114 7,324 7,324 Smyths Toys UK Limited Unit 12 Retail World 15,019 10,876 10,876 TK Maxx Unit 13A Retail World 20,000 14,484 14,484 Next Group PLC Unit 13 & 13B Retail World 19,976 14,466 14,466 Childrens World Limited Unit 14 Retail World 30,092 21,792 21,792 Carpetright PLC Unit 15 Retail World 9,354 6,774 6,774 Dean House PLC Unit 15a Retail World 5,500 3,983 3,983 Mamas & Papas (Retail) Limited Unit 16 Retail World 7,500 5,431 5,431 First Choice Holiday Hypermarkets Limited Unit 16A Retail World 7,225 5,232 5,232 Halfords Limited Unit 17 Retail World 14,959 10,833 10,833 McDonald's Restaurants Limited Unit 18 (Fast Food) Retail World 11,172 8,091 8,091 Telefonica UK Limited Unit 19 Retail World 1,994 1,444 1,444 Cardpoint Remote Ltd ATM Facility at Unit 19 Retail World , , ,433 Please note that this apportionment represents the position at 31 March Where there have been changes in apportionment or tenancies during the year then the figures shown are only indicative. Along with balancing invoices/credit notes, we have issued individual statements showing a full breakdown relevant to each tenant.

10 Contacts Deepan Khiroya Portfolio Director T: M: E: Deepan is responsible for asset management including dealing with occupational space requirements, lettings, tenant mix, refurbishment and development matters. Robin Brydon Management Surveyor T: M: E: Robin is responsible for overseeing the day to day management of the Park, ensuring acceptable standards of service are achieved, controlling costs within budget and ensuring they are correctly allocated. In addition he also considers and approves tenants applications for Landlord consents in respect of assignments, sub-lettings, alterations and deals with general enquiries regarding lease obligations and responsibilities. Marcea Clarke Property Accountant T: E: Marcea is responsible for the administration of the service charge the apportionment of charges, the annual reconciliation and the calculation of service charge invoices.