Service Charge Booklet Parrs Wood Entertainment Centre, Manchester. Cover - Text Anchor SHAPING THE FUTURE FOR GOOD

Transcription

1 Parrs Wood Entertainment Centre, Manchester Cover - Text Anchor SHAPING THE FUTURE FOR GOOD

2 Content - Text Anchor Contents * The appendices document is formed of a separate document and is available in the supporting documents section of the online customer portal. Land Securities 2

3 Welcome - Text Anchor A Warm Welcome Parrs Wood Entertainment Centre Welcome to the 2016/17 Service Charge Booklet for Parrs Wood Entertainment Centre. As with previous years, this booklet has been prepared to provide occupiers with details of planned service charge expenditure over the next financial year has been a busy year at Parrs Wood, we have tendered the contracts for Soft and hard Services to ensure that our service providers are delivering a service that is at the correct service level, competitive and providing value for money. We have seen a lot of improvements also throughout with our brand partners Bella Italia, Barlow Croft, Cineworld, Pizza Hut, Nandos and the Travelodge all refurbishing their units to a high standard, refreshing the offer, look and feel of the centre. Our target of raising a 1,000 for our charity Mencap was exceeded thanks to the effort of the management team alongside our brand partners and service providers, funds were also raised for our local charity Francis House Children s Hospice and Street Child. We donated funds to refurbish a classroom for our local High School showing that we do take Corporate Responsibility seriously and care about local community. In we will be completing several projects, some of those that were not able to be completed in due to tendering costs: An automatic electronic barrier will be fitted to the service yard to address the Health, Safety & Security concerns of this vulnerable area by providing a secure and controlled environment. Safety access points will be installed on the roof areas that require access for maintenance and where the current access methods do not comply with H&S regulations. I hope you find this booklet useful and informative and, as always, if you have any queries concerning the content then please do not hesitate to contact me. Mark Welsby General Manager Land Securities Management Suite, Parrs Wood Entertainment Centre, Wilmslow Road, East Didsbury, Manchester, M20 5PG D/L: +44 (0) Mobile: +44 (0) mark.welsby@landsecurities.com Declaration Service Charge Period: 1 April 2016 to 31 March 2017 Property: Parrs Wood Entertainment Centre Yours sincerely Mark Welsby I hereby certify that, according to the information available to me, the attached statement of service charge expenditure report and accompanying information records the budget costs of providing services to the property for the period 01/04/16-31/03/17, in accordance with the terms of the lease and, where practicable, the RICS Code of Practice Service Charges in Commercial Property, Third Edition. Signed: Name: Mark Welsby Date: 31 January 2016 Land Securities 3

4 Introduction - Text Anchor Introduction Land Securities 4

5 The right space in the right place Our retail portfolio meets the evolving requirements of our customers and consumers. Our retail park portfolio is focused on meeting consumers convenience shopping needs, and our leisure properties and shopping centres are all vibrant destinations that provide consumers with a great experience. Our deep understanding of consumer expectations of convenience, comfort and entertainment means that our properties are managed to support our retail partners in achieving strong performance. 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 The Budget This report has been produced by Land Securities and relates to the service charge period of 1 April 2016 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 unlet 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. Customer Service Charge Statement Both the customer service charge statement and the first quarterly invoice will be issued together on 1 March Contacts Mark Welsby General Manager Land Securities Management Suite, Parrs Wood Entertainment Centre, Wilmslow Road, East Didsbury, Manchester, M20 5PG D/L: +44 (0) Mobile: +44 (0) mark.welsby@landsecurities.com Robin Brydon Property Management Surveyor Land Securities Fountain Park, Dundee Street, Edinburgh, EH11 1AF D/L: +44 (0) Mobile: +44 (0) robin.brydon@landsecurities.com Funke Ajibola Senior Property Accountant Land Securities 5 Strand, London, WC2N 5AF D/L: +44 (0) funke.ajibola@landsecurities.com Land Securities 5

6 Schedule - Text Anchor Explanation of Schedules Land Securities 6

7 Explanation of the Schedules The cost summaries on the following pages show the budget 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; COMMON AREAS SHARED Services which benefit all tenants with the exception of the Bellhouse (Barlow Croft), Travelodge and Stable Block and account for 83.55% of total costs. Covers management, utilities, soft services and hard services of the areas referred to in the lease as access roads, boundary paths, walkways and landscaped areas which the Bellhouse (Barlow Croft), Travelodge and Stable Block contribute towards. This accounts for 16.45% of the service charge budget and is broken down further to accommodate the Bell House (Barlow Croft) and Stable Blocks contribution to shared areas, 15.08% and 3.2% of the 16.45% respectively. Land Securities 7

8 Budget Forecast - Text Anchor Budget Land Securities 8

9 Budget - % Allocations Parrs Wood Entertainment Centre Year Ending 31 March 2017 Total Budget: 628,126 Management 111, % Utilities 14, % Soft Services 299, % Hard Services 57, % Income ( 5,500) (0.9%) Exceptional expenditure 165, % Other Contributions ( 13,164) (2.1%) 26.3% 165,000 (0.9%) ( 5,500) 9.1% 57,050 (2.1%) ( 13,164) 17.7% 111, % 299, % 14,319 Percentages rounded to the nearest decimal point. Land Securities 9

10 Budget - Expenditure Summary Parrs Wood Entertainment Centre Year Ending 31 March 2017 Service Charge Budget (1 of 2) Actual ( ) Budget ( ) Budget ( ) 15 months to Variance ( ) Variance (%) March 2015 Management Management Fees 42,660 47,487 (4,827) (10.17%) 58,394 Management Fees 42,660 47,487 (4,827) (10.17%) 58,394 Accounting Fees 0 2,000 (2,000) (100.00%) 2,500 Audit Fees 0 2,000 (2,000) (100.00%) 2,500 Site Management Resources 58,028 49,525 8, % 53,781 Staff Costs 48,073 35,869 12, % 50,545 Site Offices/Accommodation 9,955 13,656 (3,701) (27.10%) 3,236 Health, Safety & Environmental 10,343 2,449 7, % 3,688 Health & Safety 10,343 2,449 7, % 3,688 Management Sub-Total 111, ,461 9, % 118,362 Utilities Electricity 13,852 10,957 2, % 15,168 Electricity Lighting 12,942 9,955 2, % 13,764 CRC Electricity 910 1,002 (92) (9.18%) 1,404 Energy Costs Holding Account % 0 Water % 635 Water % 635 Utilities Sub-Total 14,319 11,291 3, % 15,803 Soft Services Security 190, ,355 4, % 214,993 Security 190, ,355 4, % 214,993 Cleaning & Environmental 80,325 64,899 15, % 86,005 Cleaning 49,000 47,999 1, % 54,019 Housekeeping / Sundry Costs 2,025 2,800 (775) (27.68%) 3,416 Landscaping (External) 14,300 14, % 28,570 Seasonal Decorations 15, , % 0 Marketing & Promotions 28,555 42,189 (13,634) (32.32%) 51,500 Marketing/Promotions 28,555 42,189 (13,634) (32.32%) 51,500 Soft Services Sub-Total 299, ,443 5, % 352,498 Land Securities 10

11 Budget - Expenditure Summary Parrs Wood Entertainment Centre Year Ending 31 March 2017 Service Charge Budget (2 of 2) Actual ( ) Budget ( ) Budget ( ) 15 months to Variance ( ) Variance (%) March 2015 Hard Services Mechanical & Electrical Service 34,099 30,251 3, % 19,025 Fire Precautions Maintenance 5,000 5,000 (0) (0.00%) 1,885 General Engineering Maintenance 5,975 4,401 1, % 5,251 General Engineering Repairs 2, , % 0 Lighting/Electrical Maintenance 4,676 4,799 (123) (2.56%) 9,624 Lighting/Electrical Repairs 15,753 16,051 (298) (1.86%) 2,265 Fabric Repairs & Maintenance 22,950 17,500 5, % 22,630 Internal Maintenance % 0 External Maintenance 22,950 17,500 5, % 22,630 Hard Services Sub-Total 57,050 47,751 9, % 41,655 Income Income From Commercialisation (5,500) (5,500) (0) 0.0% (6,129) Promotional Income (5,500) (5,500) (0) 0.0% (6,129) Income Sub-Total (5,500) (5,500) (0) 0.0% (6,129) Exceptional Expenditure Major Works 165, ,000 40, % 0 Plant Replacements 25,000 40,000 (15,000) (37.50%) 0 Major Building Works 140,000 85,000 55, % 0 Exceptional Expenditure Sub-Total 165, ,000 40, % 0 Special Unit Contribution Special Unit Contribution (13,164) (13,164) (0) 0.0% (15,976) Other Contributions Sub-Total (13,164) (13,164) (0) 0.0% (15,976) TOTAL 628, ,282 67, % 506,214 Land Securities 11

12 Budget - Expenditure Summary Parrs Wood Entertainment Centre Year Ending 31 March 2017 Allocation of Costs (1 of 2) TOTAL BELL COMMON SHARED STABLES Management Management Fees 42, ,227 5, Management Fees 42, ,227 5, Site Management Resources 58, ,482 9, Staff Costs 48, ,165 7,908 0 Site Offices/Accommodation 9, ,317 1, Health, Safety & Environmental 10, ,140 2, Health & Safety 10, ,140 2, Management Sub-Total 111,030 1,176 92,849 16, Utilities Electricity 13, ,574 1, Electricity Lighting 12, ,813 1, CRC Electricity Water Water Utilities Sub-Total 14, ,964 1, Soft Services Security 190,511 3, ,620 20, Security 190,511 3, ,620 20, Cleaning & Environmental 80,325 1,721 68,925 9, Cleaning 49,000 1,389 39,800 7, Housekeeping / Sundry Costs 2, , Landscaping (External) 14, ,100 1, Seasonal Decorations 15, , Marketing & Promotions 28, , Marketing/Promotions 28, , Soft Services Sub-Total 299,391 5, ,100 29,648 1,169 Continued on next page >>> Land Securities 12

13 Budget - Expenditure Summary Parrs Wood Entertainment Centre Year Ending 31 March 2017 Allocation of Costs (2 of 2) TOTAL BELL COMMON SHARED STABLES Hard Services Mechanical & Electrical Servic 34,099 2,501 17,516 13, Fire Precautions Maintenance 5, , General engineering maintenance 5, , General Engineering Repairs 2, , Lighting/Electrical maintenance 4, ,104 2, Lighting/Electrical Repairs 15, ,703 4, Fabric Repairs & Maintenance 22, , External Maintenance 22, , Hard Services Sub-Total 57,050 2,501 40,466 13, Income Income From Commercialisation (5,500) 0 (5,500) 0 0 Promotional Income (5,500) 0 (5,500) 0 0 Income Sub-Total (5,500) 0 (5,500) 0 0 Exceptional Expenditure Major Works 165, ,888 3, Plant Replacements 25, ,888 3, Major Building Works 140, , Exceptional Expenditure Sub-Total 165, ,888 3, TOTAL 641,290 10, ,767 65,242 2,156 SPECIAL UNIT ACCOUNT (13,164) 0 (13,164) 0 0 TOTAL 628,126 10, ,603 65,242 2,156 GRAND TOTAL 628,126 10, ,603 65,242 2,156 Land Securities 13

14 Allocation - Text Anchor Service Charge Apportionment Land Securities 14

15 Service Charge Apportionment Parrs Wood Entertainment Centre Year Ending 31 March 2017 This apportionment represents the position at 18 December 2015 Apportionment The Service Charge expenditure is apportioned according to gross internal floor area. FACTORS SQ FT FORECAST ADDRESS COMMON SHARED BELL STABLES COMMON SHARED BELL STABLES TOTAL Unit 1 Parrs Wood Leisure Park 35,791 35, ,316 9, ,675 Unit 1A External Seating Area Parrs Wood Leisure Park Unit 2 Parrs Wood Leisure Park 56,551 56, ,083 14, ,870 Unit 3 Parrs Wood Leisure Park 3,986 3,986 11,283 1, ,326 Unit 4 Parrs Wood Leisure Park 5,013 5,013 14,191 1, ,501 Unit 5A Parrs Wood Leisure Park 3,350 3,350 9, ,359 Unit 5B Parrs Wood Leisure Park 3,000 3,000 8, ,277 Unit 6 Parrs Wood Leisure Park 3,878 3,878 10,978 1, ,992 Unit 3 External Seating Area Parrs Wood Leisure Park Unit 4 External Seating Area Parrs Wood Leisure Park Unit 5A External Seating Area Parrs Wood Leisure Park Unit 5B External Seating Area Parrs Wood Leisure Park Unit 6 External Seating Area Parrs Wood Leisure Park Unit 7 Parrs Wood Leisure Park 27,561 27,561 78,019 7, ,226 Unit 8 Parrs Wood Leisure Park 60,027 60, ,922 15, ,619 Unit 10A Parrs Wood Leisure Park 35, , ,125 The Stables Parrswood Leisure Park 7, ,156 2,156 Parrswood High School Parrswood Leisure Park , ,157 35,325 7, ,767 52,078 10,125 2, ,126 Land Securities 15

16 Variances - Text Anchor Summary of Variances Land Securities 16

17 Summary of Variances Parrs Wood Entertainment Centre Service Charge Budget Indicative variances are shown based on the current year budget. 560, , % Budget ( ) Budget ( ) % Increase in budget Land Securities 17

18 Summary of Variances Parrs Wood Entertainment Centre The significant positive or negative financial variances are explained as follows: 111,030 Budget 9.4% 9,569 Variance ( ) Variance % Management A full review of service charge management and direct costs was undertaken in Total management costs are now allocated across management fees and direct costs which is consistent with the rest of the Land Securities portfolio. Total management costs allow for a 4.93% increase compared to 2015/16; however, by introducing the direct costs, management fees have reduced accordingly. Further details of management fees and direct costs can be found in the appendices. Accounting Fees External 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. Site Management Resources Newly appointed General Manager has completed their probationary period. Furthermore a decrease in management fee has been partly offset with an increase in site management resources. The 2016/17 budget includes an increased IS cost recovery in a move towards recovering the full costs of IS support required to manage our Centres. Health, Safety & Environment Legionella testing is to be carried out on common area water supplies and an invasive species survey has been included into the tree survey costs. Includes a provision for implementing energy and water reduction recommendations arising out of ISO50001 certification. Land Securities 18

19 Summary of Variances Parrs Wood Entertainment Centre The significant positive or negative financial variances are explained as follows: 14,319 Budget 26.8% 3,028 Variance ( ) Variance % Utilities Electricity Increase in Electricity due to under budgeting in previous year. Budgets for 2016/17 are set on the basis of prior year actual consumption with reference to the fully delivered unit cost of purchasing energy. 299,391 Budget 2.0% 5,948 Variance ( ) Variance % Soft Services Security The soft services contracts were tendered in March 2015 and commenced commence in May The budget includes contract cost increases. Land Securities is committed to ensuring fairness through our supply chain and this budget includes a provision for moving towards payment of a Living Wage. Land Securities 19

20 Summary of Variances Parrs Wood Entertainment Centre The significant positive or negative financial variances are explained as follows: 57,050 Budget 19.5% 9,299 Variance ( ) Variance % Hard Services Mechanical & Electrical Services Budget includes increase in contract following contract retender in March Includes costs for the remedial works required from the five year electrical tests. Includes costs for essential repair works for the lightning protection system. Fabric Repairs & Maintenance Budget includes increase in contract following contract retender in March Costs to replace damaged fire doors, and a glazing/signage survey that is required. 165,000 Budget 32.0% 40,000 Variance ( ) Variance % Exceptional Expenditure Major Works Replacement of the CCTV cameras Installation of a barrier system in the service yard, Roof Access H&S system installations/ ladders, Balance of resurfacing car park access ways costs Fire stopping to steel work that is required. Land Securities 20

21 AMS Text Anchor Asset Management System (Major Works) Land Securities 21

22 Asset Management System (Major Works) Service Budget ( ) Budget ( ) Budget ( ) Budget ( ) Budget ( ) 2016/ / / / /2021 Major Building Works Resurface car park 55, Fire stopping to steel work 22, Barriers to service yard - H&S risk 28, Roof access system and ladders required H&S risk 35, Resurface car park bays 0 170, Decoration to external cladding (black strip) , Reline car Park ,000 Total Major Building Works 140, ,000 17, ,000 Major M&E Works Replace CCTV cameras 25, Total Major M&E Works 25,000 TOTAL 165, ,000 17, , , , , , ,000 80,000 60,000 40,000 20, / / / / /21 Land Securities 22

23 Asset Management System (Major Works) AMS expenditure Goods Lift Modernisation Install automatic traffic barriers 28,000 Budget Cost Due to a security risk assessment on the service yard area a security barrier will be installed at the entrance to the yard to control traffic entering and leaving the service yard. There will also be controls to prevent unauthorised pedestrian access. Install roof access systems and ladders Budget Cost 35,000 A health & Safety roof audit identified various points on the roof access that are required to be installed to bring the roof access in line with acceptable risks for access. Replacement of CCTV Cameras Budget Cost 25,000 The current analogue cameras are connected to a VCL matrix which has had to be removed due to it developing a fault and due to now being obsolete cannot be repaired. Therefore all remaining analogue cameras will need to be migrated onto an IP platform, which has already been installed. Car park access ways resurfacing Budget Cost 55,000 The car park access ways resurfacing costs were tendered in ,000 is the balance required to complete the works with 108,000 sourced from local authority contributions. Fire Stopping to steel work Budget Cost 22,000 A recent survey identified areas where fire stopping coatings require applying to the steel works. Land Securities 23

24 Add Info Text Anchor Additional Information Land Securities 24

25 Additional Information Service Partners Key services are provided by the following service providers: Service Service Partner Contract Duration Next Re-tender Cleaning OCS 3 Years May 2018 Security Man Commercial 3 Years May 2018 M&E Services NG Bailey 3 Years May 2018 Car Park Vinci Park 3 Years May 2018 CCTV Reflex Systems 3 Years May 2018 All service contracts were tendered in March 2015 with the contracts commencing in May 2015 for a three year period. Sustainability We have replaced our aging lamp bulk heads which are now obsolete in the service corridor and roof areas with led equivalents. This will help us realise a reduction in energy usage/consumption with the addition of PIR sensors fitted to reduce consumption further when areas are not being used. We expect to see our consumption levels drop over the period with costs saving being realised, and with the remaining obsolete lamp fittings in common areas replaced in the period further reductions in consumption and energy costs achieved. We work closely with Greater Manchester Police and the local Fire Brigade offering the site as a training resource for them and by representing the leisure sector with the Manchester business continuity forum run by Manchester City Council. Due to being a successful centre with high footfall we also have very close links with the Greater Manchester counter terrorism team and work with them on security initiatives. We will create and implement an energy and water reduction plan arising out of ISO50001 certification. We continue to support our national charity Mencap and local charity Francis House Children s Hospice including them in the many events we organise. We support our local high school Parrs Wood High School in many ways offering support and by sponsoring a class room refurbishment. Land Securities 25

26 Additional Information Marketing Planned expenditure for 2016/17 is as follows. The landlord contributes 23% to these costs: Budget Advertising / Centre Promotion 9,500 Market Research 2,500 Sales Promotions 9,500 Digital Marketing 3,000 Staff Costs 3,885 Consumer PR 2,700 Corporate Responsibility 2,000 Creative 2,000 Print & Production 2,000 TOTAL 37,085 Land Securities 26

27 Appendices Service Charge Management Principles and Explanatory Notes Appendices Document The appendices document is formed of a single document, Service Charge Management Principles and Explanatory Notes, that is available in the supporting documents section of the online customer portal. - RICS Code of Practice - Service Charge Policy Statement - Generic Explanatory Notes - Utilities - Sustainability - Health and Safety - Consumer Marketing - Insurance - Senior Management Contact Details Appendices - Text Anchor Land Securities 27

28 Land Securities Group PLC 5 Strand, London WC2N 5AF T +44 (0) E investor.relations@landsecurities.com W The O2 Centre, Finchley Road Publication No. SCB2016/