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News Release

London

LGP retains JLL as UK Property Manager, emphasising the critical importance of sustainability credentials


London 15th March - Following a competitive tender on two of its funds and a negotiated renewal on many others, Legal & General Property (LGP) has re-awarded the property management of the majority of its £10.4bn UK portfolio to Jones Lang LaSalle (JLL), with one of the key differentiators being market leading sustainable property management.

Jones Lang LaSalle has been retained as property managers on a three year contract and is instructed to manage the bulk of LGP’s commercial property portfolio, with the exception of the leisure fund which is managed by Savills.
Under the new appointment, Jones Lang LaSalle will be responsible for collecting in excess of £450m per annum of rent & service charge income, overseeing the tenant management function, site services procurement, engineering services, security, environmental management systems (EMS), energy procurement, data monitoring and targeting, sustainable asset management and sustainability reporting.

Nick Lees, Lead Director, UK Property and Asset Management at Jones Lang LaSalle commented: “Having engaged in a comprehensive and competitive tender process, in which sustainability credentials and approach were strongly highlighted as being a key differentiator, we are impressed to see that there is a real change taking place in the industry, driven by those at the forefront.  The new agreement includes the provision of sustainability services including an undertaking to deliver a bespoke asset sustainability plan across the portfolio. This is a key focus for us at Jones Lang LaSalle and we look forward to working with LGP over the next three years at least to evolve this plan.”

Commenting on the appointment, Paul Edwards, Director Asset Management at LGP said: “For us, the ability for our partners, advisers and services providers to engage in and lead on sustainability advances is key.  We have been really impressed with the refreshed approach that Jones Lang LaSalle has proposed and particularly the thought leadership it is bringing to sustainability management.  JLL’s capabilities in the sustainability area were critical to its re appointment, including the skill sets offered by its Upstream division. We believe that the combination of LGP’s leadership and JLL’s hands on expertise will bring forward best practise sustainable asset management in the real estate sector.”

Bill Hughes, Managing Director of LGP, added: "We take the influence we can have upon our supply chain in terms of understanding sustainability very seriously, and choose not to work with organisations that are behind in their knowledge of this key issue."

The new LGP contract establishes that its advisors are expected to have sustainability embedded into each job function, and for there to be enhanced training, awareness, appraisal systems and metrics to monitor success for each employee.  The contract includes provision of KPI’s and enhanced services including:

• Management, enhancement and external certification to ISO14001 standard of environmental management systems (EMS) on all managed assets
• Energy procurement – using outsourced specialists
• Utility data measurement, monitoring and analysis on a meter, asset and fund level.
• Target  setting across all aspects of sustainability including energy, refrigerant usage, carbon emissions, water, waste, biodiversity, transport, tenant liaison and community engagement
• Asset Sustainability Plans for each asset over the next 10 years, linked to Planned Preventative Maintenance plans, including a sustainability risk assessment and an analysis of options to upgrade EPC’s where appropriate.
• Annual Sustainability Action Plans that are part of each asset’s annual sustainability plan.
• Enhanced tenant liaison processes and satisfaction reviews.
• Improved recording of community engagement activities and procedures
• Biodiversity plans and green travel plans for all managed assets.
• Quarterly sustainability reporting on all aspects of the sustainability action plans – covering performance against energy targets, carbon emissions, water, waste, biodiversity, travel, tenant liaison and community engagement.
• LGP monitors progress on a monthly basis against a set of 55 key headings including industry initiatives such as the Global Real Estate Sustainability Benchmarking (GRESB ) and IPD’s EcoPAS initiative to analyse asset and fund performance against a pre-defined set of sustainability risk criteria.