Carillion and CBRE to manage £695m council portfolio
A JOINT venture between Wolverhampton construction and support services company Carillion and property consultancy CBRE has been chosen by Stockport Council to manage its £695m property portfolio.
The council plans to form a partnership, called the Stockport Strategic Property Partnership (SSPP), with the joint venture and hopes it can shave 30% of the cost of managing its estate by 2015-16.
Carillion said the deal could be worth more than £100m to the joint venture over ten years.
The new arrangement replaces a service being delivered by Norfolk Property Services.
The council said Carillion and CBRE will carry out assessments of the authority’s land and property assets and “will access private sector expertise, funds and innovative models for service delivery”.
It added: “Carillion:CBRE have designed a self-financing and self-sustaining SSPP model, that avoids placing additional pressure on the council’s revenue budget by its creation.”
Carillion chief executive, Richard Howson, said: “I believe this further success in the local authority outsourcing market once again reflects our ability to provide integrated service solutions that enable local authorities to reduce costs without sacrificing service quality.”
Staff will be transferred from the current provider, NPS, to the new provider. Full consultation continues to take place with employees and trade unions. The SSSP should be up and running by September.
