Mapeley

Mapeley, a consortium backed by Soros Real Estate Group and Fortress Investment Corp, is the preferred bidder for the Pounds 2bn contract to own and manage the Inland Revenue's 600 buildings. The 20-year project, known as Steps, covers 1.5m square metres and will be the largest property outsourcing contract awarded by the government since a similar project involving Department of Social Security three years ago.

Services to be provided include building management, maintenance and cleaning services for Inland Revenue and Customs & Excise departments.
The outsourcing of the DSS contract has been keenly watched by many private-sector corporations, which increasingly believe that they, like government, should not be in the business of owning and managing real estate unless it is their core business.

Since the DSS contract was awarded, several organisations have announced plans for similar outsourcing property. Contracts are currently being sought for the BBC, Abbey National, and London Underground.

Other partners in the Mapeley bid for Steps are Morgan Stanley Real Estate Fund, DTZ Debenham Thorpe, Grubb & Ellis Management Services and Delancey Estates.

Bidding for the contract was understood to have been keen, with Mapeley beating Trillium - the manager of the DSS estate, backed by Goldman Sachs - and Servus, backed by Nomura, the Japanese group. Manish Chande, chief executive of Trillium, said: "There must have been clear blue water between Mapeley and the other bidders. Our bid was as clean and sharp as it could be and I wish Mapeley every success."

Robin Priest, chief executive of Mapeley, confirmed the bid had been lower than that of competitors, noting that the Treasury had sought "the most economically advantageous offer".
"But we haven't done anything which prejudices service," he added.
Mr Priest said that Mapeley believed it needed to win the bid to be a contender for private-sector contracts.

"We saw this very much as a platform for future business," he said.

"The industry needs to have several players because we think the dam (of private sector demand) will soon burst."

Financial Times 4/8/2000



NATIONAL NEWS: Mapeley set for Pounds 2bn Revenue property project By NORMA COHEN Mapeley, a consortium backed by Soros Real Estate Group and Fortress Investment Corp, is the preferred bidder for the Pounds 2bn contract to own and manage the Inland Revenue's 600 buildings. The 20-year project, known as Steps, covers 1.5m square metres and will be the largest property outsourcing contract awarded by the government since a similar project involving Department of Social Security three years ago. Services to be provided include building management, maintenance and cleaning services for Inland Revenue and Customs & Excise departments. The outsourcing of the DSS contract has been keenly watched by many private-sector corporations, which increasingly believe that they, like government, should not be in the business of owning and managing real estate unless it is their core business. Since the DSS contract was awarded, several organisations have announced plans for similar outsourcing property. Contracts are currently being sought for the BBC, Abbey National, and London Underground. Other partners in the Mapeley bid for Steps are Morgan Stanley Real Estate Fund, DTZ Debenham Thorpe, Grubb & Ellis Management Services and Delancey Estates. Bidding for the contract was understood to have been keen, with Mapeley beating Trillium - the manager of the DSS estate, backed by Goldman Sachs - and Servus, backed by Nomura, the Japanese group. Manish Chande, chief executive of Trillium, said: "There must have been clear blue water between Mapeley and the other bidders. Our bid was as clean and sharp as it could be and I wish Mapeley every success." Robin Priest, chief executive of Mapeley, confirmed the bid had been lower than that of competitors, noting that the Treasury had sought "the most economically advantageous offer". "But we haven't done anything which prejudices service," he added. Mr Priest said that Mapeley believed it needed to win the bid to be a contender for private-sector contracts. "We saw this very much as a platform for future business," he said. "The industry needs to have several players because we think the dam (of private sector demand) will soon burst." Financial Times 4/8/2000