ADMIN-RE
CLIENT BRIEF Admin Re®, a division of Swiss Re®, acquires and administers books of life insurance that are closed to new business. ask-re were appointed to advise on the future…
CLIENT BRIEF
Admin Re®, a division of Swiss Re®, acquires and administers books of life insurance that are closed to new business.
ask-re were appointed to advise on the future occupational requirements for Admin Re® and devise a suitable property strategy plan for the future. With an approaching break option at their site in Hitchin, we were requested to report on the property issues by reviewing all options with the possible risks and benefits arising from the implementation of strategic actions relative to this main site.
Hitchin is comprised of 3 office buildings, circa 80,000 sq ft: demised under 1 lease for a term of 25 years. Following changes within the business and with staff numbers reducing over the years, this space was clearly underutilised.
OUR PROFESSIONAL APPROACH
ask-re assessed the total occupation costs of rent / rates / utilities / day to day site operation costs plus
previous and planned maintenance to assess the true cost of the site to the occupier. ask-re worked closely with Admin Re® to ascertain projected staff numbers within the future business plan. ask-re’s detailed investigations were used to demonstrate the significant savings potential and with it obtain Board approval to action the break. ask-re proceeded to agree new terms for Admin Re® on exactly the space they required to stay at Hitchin (on 1 building instead of 3) but on improved The break clause in the lease presented a once- only opportunity to end the current lease arrangement and seek alternative / cheaper accommodation elsewhere. Once the break notice was served, ask-re immediately began the search for alternative accommodation in the locality and identified a suitable site.
THE SUCCESS STORY
With space planning analysis it became clear all staff could be accommodated in one main building of approximately 45,000 sq ft. Hence we were able to demonstrate the opportunity for significant savings going forward.
With a new lease completed ahead of the break date, the client remained in occupation and simply moved any remaining staff across to their main building. Total property expenditure reduced to £1.5 million per annum. Over the remaining 15 years of the term this produced substantial savings for Admin Re®, in excess of £10m.
THE VERDICT
“We are delighted with the result here. ask-re worked with us every step of the way from initiating the strategy plan to delivering the completed lease at Hitchin. They have delivered huge savings for the company.” Paul Parsons,