A joint venture, Matrix Facilities Management, formed by Skanska and Chesterton Workplace Management is to provide FM services at Ericsson’s entire UK portfolio under a two year deal.

Matrix will deliver services to Ericsson’s six offices and technical centres, mostly in the south of England, totalling 55,740 sq m (600,000 sq ft). Ericsson is consolidating service delivery in the UK and says it wants to establish a strategic, long-term collaboration for its facilities management.

“This exciting new venture will provide a range of cost-effective solutions for
Ericsson,” said David Walker, Managing Director of Chesterton Workplace Management. “It is part of our strategy to form joint ventures of this nature so that, together, we can offer first class facilities management in the UK and around the world. We are delighted to be working for Ericsson with such a prestigious company as Skanska. Together, our ability to buy-in services is formidable.”

“It is a pleasure to have won the opportunity to service Ericsson’s requirements in the UK,” said Mats Jonsson, President of Skanska Services. “With the well-matched competence and experience of Chesterton and Skanska, we are aiming to generate synergies and added-value to Ericsson’s operations beyond the UK. This is our first major step into international FM services proving the Skanska devotion to be our clients’ global partner.”

News of this win follows a re-think of Chesterton’s facilities and property management offerings. Chesterton Workplace Management, together with Property Asset Management, now forms Chesterton Management Services (CMS), under David Walker. CMS is a response to the changing demands of institutional clients and the shift towards property partnering and strategic partnerships, says Chesterton. “We have the people, the expertise and the service offering. This business has real momentum now,” comments Walker, “We offer cost savings, seamless efficiency and effective long-term relationships with our customers and suppliers.”

Chesterton Workplace Management’s new venture follows its recent success (see News story) in securing a seven-year contract with computer company ICL, servicing 117 buildings in the UK totalling 204,380 sq m (2.2m sq ft). Other clients include British Airways, The Scottish Executive, Shell, Lattice Group, Cable & Wireless, Mattel, the Conservative Party, Transco and a range of PFI contracts including St George’s Hospital, London.

Alongside CMS sits CSS, Chesterton Strategic Services - comprising Chesterton Property Partnering (CPP), Chesterton Consulting and Chesterton Structured Finance. The CPP business unit has been established specifically to tap into the growing corporate outsourcing market.

CPP has been appointed preferred bidder for property management by the bus division of FirstGroup, the largest bus operator in the UK, with a 10,000 strong fleet. A feature of the partnership will be a review of the 46,450 sq m (5m sq ft) operational portfolio across 350 locations, mostly large transport depots.

Brian Thompson, Director of CPP, expects negotiations, including the details of the risk/reward structure to be completed within weeks: “We will be required to drive through savings and efficiencies in the delivery of facilities and property management services. In parallel, capital will be generated to rejuvenate the … property assets.”

Derek Lawson, Group Property Director at FirstGroup, said: “We are confident that Chesterton, with its integrated service delivery platform and a positive focus on partnering will help us achieve our over-riding business objectives.”

Re-positioning
Derek Gorman, Managing Director of Chesterton Strategic Services comments on the new approach. “We positioned Chesterton to respond to the increasing demand for outsourcing, strategic FM and property partnering initiatives. Our client base benefits from the group’s all-round property offer and its ability to provide independent property solutions.

“Adding Chesterton Management Services (CMS) and Chesterton Strategic Services (CSS) to our traditional business gives landlords and tenants full access to a unique range of skills, from High Street rent reviews to major outsourcing deals that take away the cost and effort of running a company’s property portfolio.”

Earnings from long-term contracts have risen from less than 10% to more than 25% over the last nine years and the company has set itself the target of deriving half its revenue from such contracts within three years.

Richard Byatt