PRE-MARKET ENGAGEMENT - PROPERTY MANAGEMENT AGENCY (PMA) CONTRACT

PROPERTY MANAGEMENT AGENCY (PMA) CONTRACT - PRE MARKET ENGAGEMENT The Property Management Agent manages the Council's landlord / tenant agreements in respect of various shops, community groups, football clubs, telecoms (e.g., mobile phone masts), Scout group premises, etc.

The overall rental value of our portfolio is circa £6.07m (see Appendix B). The contract is split into two parts -

• Investment portfolio - high income generation shops and markets.

• Non-Investment portfolio - Community centres, community halls, public halls, Leisure Centres, Scout huts, etc. In addition, there are over 95 commercial shops under the HRA which are managed by corporate Property under the current contract on behalf of Housing.

There is a different management approach between these two strands of the contract, although they were let as one contract following the last procurement exercise this was mainly due to historical reasons. Part of the pre-market engagement will test the market's view as to how appropriate this is as a model for 2024 and beyond.

The portfolio to be managed under the PMA Contract consists of circa 1,000 agreements. Circa 300 of these are considered to be 'Non-Active' i.e. do not require day to day estate management but do require administrative supervision. The nature of these agreements includes easements, garden licences, access licences, rights of way, wayleaves and lease-ins.

The remaining circa 700 agreements are deemed as 'Active' and require full day to day estate and lease event management. These agreements fall into the categories of sub-stations, children centres, community centres, shops, industrial units, telecoms, licencing (including grazing) and leisure properties i.e. sports centres. As part of these circa 700 commercial units there are circa 90 agreements to be managed which form the Western International Market.

LBH has a Corporate Property Team, but it needs a PMA contract to provide support due to the size of the LBH portfolio.

The scope of the PMA Contract will include -

• Rent collection • Rent increases as per the lease • Terminating leases when appropriate on our behalf • Ensuring leases are in place • Ensuring premises are occupied • Carrying out due diligence checks • Checking that occupancies are in accordance with the terms of the lease licence • Management of debts. • Perform basic move-in checks such as electricity / gas / water readings etc and noting the general condition of the premises. • Advice regarding the valuation • Carry out finance checks and background checks on the tenants. • Finding tenants • Producing a written report for LBH with details of the checks carried out and making a recommendation regarding the suitability of the tenant.

The above list is not exhaustive; a draft specification can be found at appendix C.