BNP Paribas proposes Manchester office closure
BNP Paribas Real Estate this week outlined proposals to shut its Manchester and Cardiff offices, according to PropertyWeek.com.
Staff were informed of the proposal to close the two offices this week. In total the closures would see the removal of between 15 and 20 positions.
A closure would be seen as a further blow to the regional property market, with large international firms – both investors and service providers – preferring to focus on Central London and the South East.
It is understood that there are no proposals to close any other regional offices. BNP Paribas Real Estate also has regional offices in Southampton, Bristol, Birmingham, Sheffield, Leeds, Newcastle and Edinburgh.
The move is part of BNP Paribas Real Estate’s plans to restructure its UK business, revealed last week. This will see it focus on profitable businesses such as Central London, and also move away from businesses that are long-term loss-making.
The restructuring proposals currently being put forward could lead to the redundancy of 70 positions.
A spokeswoman for the company said of the restructuring proposals: “BNP Paribas Real Estate can confirm that it is proposing to remove approximately 70 roles in the UK,” the spokeswoman said.
“The proposal is to restructure the business in order to continue to provide the best service to clients. The company will continue to invest in areas in which it can provide a sustainable service to meet the needs of its clients.
“This reorganisation is part of a strategy developed by the board of BNP Paribas Real Estate UK. It is not a decision made by the parent company, BNP Paribas, in the framework of its previously announced adaptation plan to the new regulatory environment.”
BNP Paribas Real Estate made earnings before interest and tax of £2.9m in 2010, according to Property Week’s latest agency survey, ranking it 12th in the UK, from revenue of £63m. This compared to EBIT of £3.2m from £63m of revenue in 2009. On an overall basis, the UK accounted for 12% of the firm’s EUR618m revenue in 2010.
The company went into the summer in a seemingly bullish position, having tabled a deal that would have seen it buy struggling rival DTZ from the listed company’s majority shareholder, Saint Georges Participations, with a price of 60p a share mooted.
But while talks on a takeover were initiated, no formal proposal was made, and after five months it was announced that DTZ would put itself up for sale, a process which resulted in its eventual takeover by Australian services firm UGL in a deal that saw shareholders receive nothing.
