Situation

Frasers Property UK (FPUK) launched a tender process in 2019 to bring together property management services for its six business parks in the South East, spanning around 325,000m² of space. By working collaboratively with a single partner, they aimed to systematically improve the customer experience and sustainability performance.

One driver behind this was occupiers increasingly seeking responsive and active management to offer their employees choice and support their wellbeing, and to reduce the carbon footprint of their workplace. A more collaborative approach to property management also supports FPUK’s sustainability targets, which include net-zero carbon emissions from energy and water use in all landlord-controlled areas by 2030 and a 5 Star GRESB rating by 2024.

From the start of the tender process, FPUK’s Asset Management team instructed the external advisor to prioritise sustainability. In developing a market-leading Service Level Agreement, the team referred to BBP guidance (here) and best practice in the market, including by Managing Agent Partnership members (examples here).

Reflecting mutual high standards of property management, sustainability and customer experience, MAPP won the mandate for Farnborough Business Park in Hampshire, Watchmoor Park in Camberley, Winnersh Triangle Business Park near Reading, Maxis in Bracknell, Chineham Park in Basingstoke and Lakeshore, in Bedfont Lakes. This portfolio of high-quality business parks located in key satellite towns near London enjoys strong occupier demand, attracted by good connectivity and thriving campus environments.

Actions

One team approach

From the start, FPUK and MAPP integrated their teams at asset-level to enable greater collaboration. This includes FPUK Asset Managers sitting alongside MAPP Surveyors and Facilities Managers. This forward-thinking approach has created a positive environment for informed decision-making and shared actions.

Examples of shared activities are:

• Conducting and maintaining Sustainability Baseline Surveys and Asset Sustainability Action Plans for each park, covering energy, water, waste, sustainable travel, biodiversity, occupier experience and community engagement.
• Understanding the carbon emissions of each park and engaging with the property teams to unlock opportunities tailored to each asset.
• Identifying renewable technology on-site opportunities and ensuring all electricity supplies are on 100% renewable energy REGO certificates.
• Adopting a more digital approach to data reporting, including rolling out smart metering to improve decision making and free up human resource at asset-level.

Acting on information together

FPUK conducts Sustainability Working Group meetings with key individuals from both companies to openly discuss concerns, performance and opportunities. These meetings are managed in a way that puts the FPUK and MAPP sustainability ambitions first, avoiding the traditional ‘owner wanting answers from the managing agent’ forum. As a result, the sessions are inclusive and dynamic, generating good discussion and leading to real action.

Actions through the Group include:

• Sustainability target reviews against all corporate and asset-level targets.
• Presentations from parks on their impacts and challenges.
• Open forum on how to deliver results against targets.
• Balanced allocation of actions between FPUK and MAPP on key activities.

Going beyond the Service Level Agreement

The approach shown by both companies has created an aim to push beyond the wording in the Service Level Agreement, working collaboratively to deliver on all the targets and seek further opportunities on the net-zero carbon roadmap.

• FPUK adopting MAPP ISO 14001 environmental practises across all parks.
• FPUK and MAPP sustainability colleagues meet regularly to share knowledge on challenges around the net-zero carbon roadmap and sustainability.
• Empower asset-level teams with the knowledge and support to deliver real results and avoid unnecessary corporate sustainability checklists.

Ilaria del Beato, CEO of Frasers Property UK: “Our vision is to create places where people and businesses can flourish, and occupier experience is central to that mission. In appointing MAPP across our business park portfolio, we have found a strategic partner who shares our focus and commitment to delivering outstanding sustainable workspaces with vibrant and well-connected communities.”

Financial

The additional property management services were priced into the contract between MAPP and FPUK. This includes a budget for a Sustainability Manager and Sustainable Travel Manager on the ground, who will be working with property teams across the portfolio.

The partnership covers over £4m of annual energy and water costs, meaning that environmental improvements have the potential to deliver substantial cost savings for FPUK occupiers in the coming years.

Benefits

• Contributing to the long-term value of FPUK’s business park portfolio in the South East. There is increasing evidence that funds and portfolios with environmental, social and governance (ESG) standards perform better and are more resilient than non-ESG-specific funds and portfolios.
• Supporting the sustainability goals of FPUK, MAPP and park occupiers.
• Enhancing the occupier experience and customer satisfaction.
• Delivering carbon reductions and energy efficiency cost savings.