Cost-saving plans attract criticism at Public Property Summit
At the Public Property Summit being held today and tomorrow at London’s Business Design Centre, John McCready has laid out his plans for public-sector property vehicles across the UK in his keynote speech.
McCready is head of the government’s property unit within the Department for Business, Innovation and Skills. He confirmed plans to set up two public-sector property vehicles in London and Bristol as outlined in the recent Spending Review, and said that once the model had been proved, the plan was to roll out this concept to other UK cities.
McCready also confirmed that the government felt now was not the best time for sales of public-sector assets, particularly in the UK regions, as the market was not sufficiently strong. This view was echoed in another session at the Summit by Robert Peto, vice chairman of capital markets at DTZ and RICS president, who added that he felt the valuation of some public-sector properties was too optimistic.
McCready said the government’s freeze on new leases and renewing existing leases had already saved £24m. This freeze was criticised by Helical Bar chief executive Mike Slade, who said in another speech at the Summit that the plan was too dramatic. Private-sector companies faced being left with buildings where it would be very difficult to find new tenants or a viable plan for redevelopment, he argued.
Slade also criticised the government’s plan to relocate civil servants from London to other areas of the UK. Helical Bar would be continuing with its plan to develop regional office hubs, he added, but he said it would take five years to make them work.
NovaLoca is looking forward to meeting you at the Summit – you can register online and come and say hello to us at stand C9!
