[EMAIL PROTECTED]
<[EMAIL PROTECTED]> wrote:
>On 6, Oct 2006, at 17:46, Julian wrote:
>
>> "Sue Burchett" <[EMAIL PROTECTED]> wrote
>> in message news:[EMAIL PROTECTED]
>>>
>>> Waterfront has the news Watford is moving to Apsley in 2008. Cost
>>> savings
>>> will be 10 million over 10 years. How many million a year does Watford
>>> cost to run?
>>
>> So you sell Watford for 30mil
>> buy Apsley for 20 mil thats a 10mil cost saving :-0
>
>I'm not an accountant but there will one along in an hour or two.
Will I do? I used to be a property portfolio manager for a major
occupier.
There are several factors involved.
First, how much floorspace do you actually need? As a result of
continuing staff reductions (not the least as a result of the reorg
Robin Evans did soon after he arrived), much of Watford has been empty
for years. BW can actually get along with much smaller head office
premises now, which allows a major instant and perpertual saving from
moving.
Second, the Watford property is a prime redevelopment site, and worth
a lot more on that basis than in its current office use. BW should
get a good capital sum (and gain) from selling it.
Third, as to operating costs, a new building should be much more
efficient to run, giving nice savings in operating cost / m2 over
Watford. Calculating the net present value of those savings will show
this is equivalent to another nice capital sum.
As this is part of BW's property portfolio, I expect none of the
proceeds will be spent directly on running the waterways, but instead
will be reinvested in other property (Apsley being part of that
investment, but there should be some capital left over after that is
bought) to produce income to spend on the waterways every year.
Adrian
Adrian Stott
07956-299966
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