The Director of Regeneration and Place has agreed to approve the award of a contract to Jones Lang LaSalle Limited via the Crown Commercial Services Framework for Estate Management Services, Lot 1 Total Estate Management, with a contract value of £223,500 for a term of 18 months.

In May 2023 the Council acquired the Grange and Pyramids Shopping Centres as part of the Council’s wider regeneration aspirations.  As part of the purchase the Council commissioned the management company, Jones Lang LaSalle Limited (JLL), which was used by the previous owner, to provide a range of services for the facilities, property and asset management and rating services for the facility.  This was to ensure continuation of service and also enabled the Council to meet the short timeframe for purchase.

The contracts for these services expired on 3rd May 2024 and in respect of the facilities an asset management functions a further six month extension was agreed and more recently a further contract has been awarded until November 2025.  For the Asset Management and Rating services a six month extension to the original contract was agreed, but it appears that it was never implemented.  In order to cover costs already incurred and also to retain the service moving forward, the Council is seeking to implement new a contract to cover the period from May 2024 until November 2025 to bring it back in line with the other functions.

Officers are working on a competitive procurement process to provide one contract which would cover the Shopping Centre, Mallory, Irvine, The Hythe and the Europa Centre and potentially any other properties the Council may acquire which require asset, property and facilities management support.  This will take some time to put in place, so it is proposed that a direct award contract via the Crown Commercial Services (CCS) Framework for Estate Management Services, Lot 1 Total Estate Management (Ref - RM6168) is put in place with JLL for a period of 18 months.  This will cover the period from 3rd May 2024 to 3rd November 2025 in order that continued service can be provided in the interim period.

JLL has provided a fee proposal as follows:

Asset Management

£5,000 per month (£60,000 per annum) plus either:

• Where JLL have oversight only of transactions but do not undertake the initial negotiations as these are undertaken by the letting agents or
• lease advisory consultants. For the avoidance of doubt these fees will be paid in addition to any specialist letting/lease advisory fees.

In addition there will be additional costs for the following services:

Lettings, stepped rents, turnover rents, surrenders, value -add initiatives, temporary lettings/renewals, administrations and rent payment plans, lease renewals, lease regear, rent reviews, licences,  tenancy at Wills.

Rate Liability/Account Management

 A fixed fee of £5,000 per annum plus VAT.

The overall contract is capped at £223,500 and the fees set out above are as per the previous agreement.

As the existing contract has expired, the Council needs to continue to work with JLL until such time as a new contract can be procured.

The decision has been taken under Part 3 Section C - Overview and Scheme of Delegations of Authority to Officers as the decision is not reserved to a Committee or Sub-Committee and the Director is satisfied that paragraphs 2(a) to 2(c) apply.

Background Papers

·  Fee proposal submitted by JLL.