Service Charge Expenditure Report Cambridge Leisure Park, Cambridge. Cover - Text Anchor SHAPING THE FUTURE FOR GOOD

Transcription

1 Service Charge Expenditure Report Cambridge Leisure Park, Cambridge Cover - Text Anchor SHAPING THE FUTURE FOR GOOD

2 Content - Text Anchor Contents Land Securities 2

3 Welcome - Text Anchor Final Thoughts Cambridge Leisure Park I am pleased to report that for the year 2015/16 we have successfully achieved a saving against the budgeted service charge costs of 13%. During the past 12 months we have had a change of General Manager. Yvonne Moulton departed in August 2015 and I took over in November Our priority was to focus on the customer journey, ensuring that customers visiting the park had a positive experience. We have made changes to the cleaning schedules to better suit the park s needs. We have worked hard to deliver experiential experiences for our customers, trying to create an unexpected wow factor when they arrive. Highlights included our Christmas Lights switch on and our Easter Egg Hunt. Planned essential works during the year included repairs to the smoke vents, the addition of automatic doors being added to the main internal complex building and moving to energy saving lighting in service and back of house areas. Diane Quick General Manager Land Securities Cambridge Leisure, Management Suite, Clifton Road, Cambridge, CB1 7DY D/L: +44 (0) Mobile: +44 (0) diane.quick@landsecurities.com Operating as one team with our service partners, we remain focused on continuous improvement to ensure we provide the best service possible to our Tenants and Customers. Yours sincerely Diane Quick Certification Certification Period: 1 April 2015 to 31 March 2016 Building: Cambridge Leisure Park, Cambridge 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 01/04/2015 to 31/03/2016, 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 81, 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: Andy Williams F.C.C.A Senior Finance Manager Retail Land Securities Group PLC Land Securities 3

4 Introduction - Text Anchor Service Charge Expenditure Report Introduction Land Securities 4

5 It s all gone green Everything that we all do has an impact on the environment, however small. As a responsible company, Land Securities are always striving to reduce our impact on the environment, which is why this year s Service Charge Expenditure Report will be provided exclusively in an electronic version via our Customer Service Charge Portal. While doing this, we have taken the opportunity to refresh the look and feel of the document, making it more engaging and easier to use. Inside this document 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 Apportionment Service Charge Operational Overview of Variances Actuals This report has been produced by Land Securities, the Landlord of the property, and relates to the service charge period of 1 April 2015 to 31 March Royal Institute 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 Land Securities 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 - Land Securities pays the service charge for any void or empty unit and any service charge contribution 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 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. Contacts Diane Quick General Manager Land Securities Cambridge Leisure, Management Suite, Clifton Road, Cambridge, CB1 7DY D/L: +44 (0) Mobile: +44 (0) diane.quick@landsecurities.com Claire Magorrian Property Management Surveyor Land Securities 5 Strand, London, WC2N 5AF D/L: +44 (0) claire.magorrian@landsecurities.com Nicole Trotman Property Accountant Land Securities 5 Strand, London, WC2N 5AF D/L: +44 (0) nicole.trotman@landsecurities.com Land Securities 5

6 Explanation of Schedules Service Charge Booklet Explanation of Schedules Land Securities 6

7 Explanation of the Schedules 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. Schedules The service charge schedules are set out as follows; CARPARK COMPLEX ESTATE HOTEL INTLEISU LEISUREB NORTHACC PROMOTIO REFUSE BUILDING SECURITY SHARED Maintenance and repairs, cleaning and electricity charges for the Underground Car Park. Entire Estate Maintenance, repairs to lights and cleaning for the Estate/South East Quadrant. General repairs and maintenance to the lighting and car parking areas at the rear of the Travelodge Hotel. Electricity supply to internal common areas, maintenance and repairs including lift contracts and cleaning for the internal elements of the Leisure Block. Maintenance, repairs, lighting, fire alarm and safety line maintenance and building works for the Leisure Block. Maintenance, repairs to lights and cleaning for the North Access Road. Marketing and promotions for the park. Waste charges for the Complex. Maintenance, repairs to lights and cleaning of the Service Yard/Bin Areas for the shared Residential/Retail building. 3.5% of Security manpower and associated costs for the South East Quadrant. Planned maintenance and repair costs for the foot gate and shared area between Jos Management and Spires. Land Securities 7

8 Budget Forecast - Text Anchor Service Charge Expenditure Report Actuals Land Securities 8

9 Actuals - % Allocations Cambridge Leisure Park Year Ending 31 March 2016 Total Actuals: 658,317 Management & Insurance 99, % Utilities 27, % Soft Services 433, % Hard Services 45, % Exceptional Expenditure 52, % Other Contributions ( 561) 0.0% 0.0% ( 561) 8.0% 52, % 45, % 99, % 27, % 433,729 Figures rounded to the nearest decimal point. Land Securities 9

10 Actuals - Expenditure Summary Cambridge Leisure Park Year Ending 31 March 2016 Service Charge Expenditure Schedule Actual ( ) Actual ( ) Budget ( ) Variance ( ) Variance (%) 15 Months to March 2015 Management Management Fees 64,874 64, % 79,299 Accounting Fees 0 2,200 (2,200) (100.0%) 5,975 Site Management Resources 28,862 56,705 (27,843) (49.1%) 52,688 Health, Safety & Environmental 3,009 3,100 (91) (2.9%) 2,774 Management Sub-total 96, ,879 (30,135) (23.8%) 140,735 Utilities Electricity 22,013 32,846 (10,833) (33.0%) 44,389 Water 5,341 4, % 7,441 Utilities Sub-total 27,354 37,546 (10,192) (27.1%) 51,830 Soft Services Security 211, ,659 (7,367) (3.4%) 229,393 Cleaning & Environmental 161, ,434 9, % 156,130 Marketing & Promotions 60,807 60, % 68,344 Soft Services Sub-total 433, ,093 2, % 453,867 Hard Services Mechanical & Electrical Service 18,358 27,485 (9,127) (33.2%) 22,234 Lift & Escalators 11,184 25,182 (13,998) (55.6%) 26,953 Fabric Repairs & Maintenance 16,289 47,071 (30,781) (65.4%) 83,065 Hard Services Sub-total 45,832 99,738 (53,906) (54.0%) 132,252 Income Income From Commercialisation (561) (80) (481) 601.3% 0 Income Sub-total (561) (80) (481) 601.3% 0 Insurance Engineering Insurance 2,563 3,381 (818) (24.2%) 1,623 Insurance Sub-total 2,563 3,381 (818) (24.2%) 1,623 Exceptional Expenditure Major Works 52,064 58,500 (6,436) (11.0%) 0 Other Exceptional Items % (2,060) Exceptional Expenditure Sub-total 52,656 58,500 (5,844) (10.0%) (2,060) Total 658, ,057 (98,739) (13.0%) 778,246 Land Securities 10

11 Actuals - Expenditure Summary Cambridge Leisure Park Year Ending 31 March 2016 Allocation of Costs (1 of 2) TOTAL CARPARK COMPLEX ESTATE HOTEL INTLEISU LEISUREB NORTHACC PROMOTIO REFUSE RESIDENT SECURITY SHARED SOUTHACC Management Management Fees 64, , ,651 1, ,994 6, Management Fees 64, , ,651 1, ,994 6, Site Management Resources 28, , Staff Costs 29, , Site Offices/Accommodation (140) 0 (140) Health, Safety & Environmental 3, , Health & Safety 3, , Management Sub-Total 96, , ,651 1, ,994 6, Utilities Electricity 22,013 1,496 20, Electricity Lighting 21,666 1,558 19, CRC Electricity 348 (62) (581) Water 5, , Water 5, , Utilities Sub-Total 27,354 1,496 25, Soft Services Security 211, , , Security 211, , , Cleaning & Environmental 161,630 7,401 68,383 2, , , ,436 1, Cleaning 83,931 7,401 43,534 2, , , , Waste Management 55, , Housekeeping / Sundry Costs 16, , (1,497) Landscaping (External) 6, , (668) Marketing & Promotions 60, , Marketing/Promotions 60, , Soft Services Sub-Total 433,729 7, ,341 2, , ,249 60,807 55,436 1,546 7, Land Securities 11

12 Actuals - Expenditure Summary Cambridge Leisure Park Year Ending 31 March 2016 Allocation of Costs (2 of 2) TOTAL CARPARK COMPLEX ESTATE HOTEL INTLEISU LEISUREB NORTHACC PROMOTIO REFUSE RESIDENT SECURITY SHARED SOUTHACC Hard Services Mechanical & Electrical Services 18,358 (1,840) 7, ,712 4, Fire Precautions Maintenance 1,476 0 (20) , Fire Precautions Repairs 2, , General Engineering Maintenance 11,045 (1,420) 11, General Engineering Repairs 1, , Lighting/Electrical Maintenance 5, , Lighting/Electrical Repairs (3,867) (420) (7,255) 0 0 4,188 (90) (290) Lift & Escalators 11, , Lift/Escalator Maintenance 6, , Lift/Escalator Repairs 4, , Fabric Repairs & Maintenance 16,289 1,483 11, (9,971) 5, (3,235) 0 10,250 0 Internal Maintenance (13,584) 3, (817) 0 10,250 0 External Maintenance 16,223 1,079 11, ,614 2, (2,419) Hard Services Sub-Total 45,832 (357) 19, ,926 10, (2,898) 0 10,250 0 Income Income From Commercialisation (561) (561) Promotional Income (561) (561) Income Sub-Total (561) (561) Insurance Engineering Insurance 2, , Lift/Escalator Insurance 2, , Insurance Sub-Total 2, , Exceptional Expenditure Major Works 52, , ,997 35, Plant Replacements 24, , Major Building Works 27, , ,997 11, Other Exceptional Items Third Party Costs Exceptional Expenditure Sub-Total 52, , ,997 35, TOTAL 658,318 9, ,430 3, ,208 47,422 1,635 67,240 61,655 (1,233) 8,277 10,274 0 Land Securities 12

13 Apportionment Service Charge Expenditure Report Service Charge Apportionment Land Securities 13

14 Service Charge Apportionment Year Ending 31 March 2016 Please note that this apportionment represents the position at 31st 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. Apportionment The Service Charge is apportioned on the basis of fixed percentages in the leases which have been adjusted for minor alterations to the overall Gross Internal Area. These adjustments have been undertaken with reference to the original fixed percentages in the leases to ensure the apportionment is fair. Expenditure is apportioned within a number of schedules. Schedule 1 (COMPLEX) relates to the entire estate whilst schedules 2-12 are apportioned between those businesses benefitting from the services provided. LEISURE LEISURE NORTH RETAIL UG CAR SHARED ADDRESS COMPLEX BLOCK BLOCK INT BUILDING ESTATE ACCESS ROAD WASTE PARK MARKETING SECURITY ACCESS WAY TRAVELODGE TOTAL Hotel inc Retail 68, , ,068 Hotel Retail 8, , ,193 Bowling 64,427 11,812 15, , , ,534 Cinema 72,614 13,182 17, , , ,116 Cinema - Café 1, ,577 Health Club 39,259 7,198 9, , , ,839 G1 10,467 1, , , ,884 G1A - External G2 12,270 2, , , ,792 G2A - External G3 7,749 1, , , ,500 G3A - External G4 8,279 1,647 2, , , ,970 G5 6,868 1,259 1, , , ,743 G5A - External G6 3, ,463 F1 4, , , ,192 F4 2, ,946 Retail Unit 1 & 2 6, (312) , , ,794 Retail Unit 3 1, (89) ,792 Residential 17 Flats , , ,698 8, , Residential (476) Retail flats (357) , ,133 Auction Rooms , , ,224 Junction 51, ,344 Warehouse Basement Spaces , ,100 ATM Kiosk Unit F2/F3 23,246 4,262 5, , , , ,430 47,422 54,209 (1,233) 3,069 1,635 61,655 9,870 67,240 8,277 10, ,318 Land Securities 14

15 Variances - Text Anchor Service Charge Expenditure Report Summary of Variances Land Securities 15

16 Summary of Variances Cambridge Leisure Park Service Charge Actuals 757, ,318 (13.0%) Budget ( ) Actuals ( ) % Variance against forecast Land Securities 16

17 Summary of Variances Cambridge Leisure Park There are positive and negative variances contained within the summary schedule, the major financial variances are explained as follows: 126,879 96,744 (23.8%) Management Accounting fees ( 2.2k) Audit fees have been removed from Leisure service charge budgets. These will be certified in-house moving forward, in line with the rest of the portfolio. Budget ( ) Actual ( ) Variance % Site Management resources ( 27.8k) There has been a change in General Manager. The outgoing GM left in August with new GM on secondment from November ,354 37,546 Budget ( ) Actual ( ) (27.1%) Variance % Utilities Electricity ( 10.8k) Underspend predominantly due to a fall in actual consumption against forecast. In addition to this the unit rate achieved by Land Securities was lower than anticipated. Additionally there were savings made due to new LED lamps. Land Securities 17

18 Summary of Variances Cambridge Leisure Park There are positive and negative variances contained within the summary schedule, the major financial variances are explained as follows: 431, , % Soft Services Security ( 7.4k) On-site security manager left role in November 15 giving us an opportunity to review and restructure to better suit our needs. Budget ( ) Actual ( ) Variance % Cleaning & Environmental 9.2k Additional cleaning hours added as originally under-resourced. Gritting/snow clearance - 8 visits budgeted for, freezing temperatures triggered 20 taking us over-budget. Additional pest control contract costs as scope was increased to maintain entire site. 45,832 99,738 Budget ( ) Actual ( ) (54.0%) Variance % Hard Services Mechanical & Electrical Services ( 9.1k) We made savings on general engineering and lighting repairs as fewer repairs were required than anticipated. Lifts & Escalators ( 14k) The under expenditure is due to fewer lift and escalator repairs required than anticipated. Fabric Repairs & Maintenance ( 30.8k) 30k accrual from previous SC 2014/15 to install safety film to the windows of the main complex in line with Health & Safety requirements. Complete in 15/16 year. 52,656 58,500 Budget ( ) Actual ( ) (10.0%) Variance % Exceptional Expenditure Major Building Works ( 6.4k) Internal fire door repairs, smoke vents and external wall cleaning completed. Overall expenditure was less than budget due to savings on original quotations. Land Securities 18

19 Land Securities Group PLC 5 Strand, London WC2N 5AF T +44 (0) E investor.relations@landsecurities.com W Service Charge Expenditure Report Cambridge Leisure Park, Cambridge Publication No. SCE15/