New Industry Benchmark For Office and Call Centre Design and Space Management
Acquisition of a new 12,000 sqm office in docklands Melbourne at a time when office supply was very low and tight delivery deadlines were demanded.
This facility was part of a new overarching organisational strategic customer service platform – consolidation of all key national call centres to a new hi tech central facility was crucial.
I Worked closely with the business and embracing the latest in technology capability a master planned and designed robust multi-functional call centre was developed quickly.
The design needed to support all the necessary environments required by the business, i.e. training rooms, collaboration and break out spaces, simulation environments, test and product labs, adaptability.
What normally would take 12 months needed to be delivered in half that time. With a team of professional best in class consultants and staff assembled, it was delivered within 6 months and under the budget of $25 million.
Australia’s Largest Commercial Office Lease Deal
During 2010, dubbed ‘Project 793’ I was involved in Australia’s largest commercial leasing deal, encompassing more than 115,000 sqm of CBD office space with a value of over $1.4b in capital works and leasing costs over 10 years.
My role was to lead and manage the commercial negotiation, design and refurbishment of Telstra’s global headquarters in Melbourne and three key offices in Sydney simultaneously bringing a diverse team of experts together to design, engineer and project manage to deliver the construction of a flexible and highly technological office work environments.
Under the leadership of the former CEO Sol Trujillo, as part of a five year strategy transformation plan, I worked with a team to develop and, implement an office space consolidation program which delivered new office environments over a combined 185,000 sqm of new flexible office environments across Australia and Asia.
This was achieved by bringing a diverse team of experts together to design, engineer and project manage and deliver the construction and the business relocation working closely with all internal and external stakeholders.
Largest Property and Facilities Management Outsource Contract In Australia
Primarily, I was required to review the property delivery model to identify opportunities for productivity improvement, cost reduction and improved service levels. This led to a change in the company’s provider of outsourced services and an expansion of outsourcing to include world-class partners in the areas of capital works, facilities, leasing/ property management and environmental and energy management.
A historical 10-year contractual arrangement with United Group Limited was tendered to the market in 2010. A new benchmark outsource arrangement that accessed the best in class global practice was awarded to Jones Lang LaSalle. An aggressive three-month transition plan was developed for one of Australia’s largest corporate property portfolios with over 15,500 properties and an annual operating budget of $500 million.
London Hosting/Data Centre (Canary Wharf)
A significant property leased by Telstra operating as a critical hosting and data centre with only 3 years remaining in the lease, an above market rent and no options to renew. At the time the property was in the hands of a Bank appointed receiver on the behalf of the Landlord.
After leading a team to conduct a thorough feasibility study and options review in 2012, a structured a third party purchase vehicle for $21m (UK) from the receiver was set up and a new long term lease with a market rent and fixed rental increases for budgeting certainty put in place.
The asset was then marketed with a new long term lease for 25 years and sold to Legal and General for $42.5m (UK).
The entire transaction from review to execution was performed in less than 6 months to coincide with the company’s half year reporting deadline.
Divestment and Development of surplus property nationally
Undertaking a complete review and stress test across a 15,000 sqm site national property portfolio to identify relative surplus property that had higher and better uses for value creation over and above existing telecommunications services (ie residential, broad based acreage, under utilised telephone exchanges in built up prime areas) valued at approx. $500M.
Through a multi-faceted approach, I helped guide the process that divested over 450 properties that ranged from traditional vacant possession and leaseback sales to structured partnering arrangements with property developers and investors that included joint design, planning, construction and sales processes to unlock and realise the hidden value.
General Manager – Group Property, Telstra, 2003 – 2008
I was primarily responsible for all national property leases and property divestment
With former CEO, Sol Trujillo, the Property Group made a significant contribution to the company’s five year transformation plan by developing and implementing an innovative office consolidation program to reduce the cost base and deliver new key office environments to support the business transformation operating model. Through my contributions, we were able to:
- Deliver a $35M or (eight per cent) reduction in property operating costs in one financial year and revenues of $68M;
- Implement a global consolidation strategy that reduced ongoing leasing costs by $147M annually and decreased office footprint by 340,000 sqm;
- Consolidate five property functions into one integrated team, delivering superior internal customer satisfaction
- Realised over $150M in property sales of declared surplus property and creating structured vehicles with developers in order to maximise end use value and maintain level of involvement and visibility with the planning, design, cost and sales process.
Head of Property – BHP Billiton, 1996 – 2003
In 1996, I began work as a Property Project Manager responsible for all capital works planning and delivery across Australia, quickly identified an opportunity to better manage the company’s overall property assets, both owned and leased.
After successfully presenting this vision to the CEO and the senior leadership team, was appointed as the new Head of Property with a mandate to deliver on the strategy for an integrated property delivery solution model. ‘
This agenda reduced cost, created new work environments, and divested surplus and non-core property assets whilst supporting property strategies for business divestment and acquisitions such as the BHP Billiton merger, OneSteel and BlueScope. floats
Divestment of $1.1Billion of real estate
I helped to build a cohesive team, to not only retire and develop many diversified surplus assets raising over $1.1 billion via traditional sale methods and structured joint ventures with developers over three years but also led a strategy that saw BHP Billiton consolidate all its offices around Australia, UK, Singapore and South Africa reducing ongoing recurring costs and providing the opportunity for a new and more effective work environment for the people.
120 Collins Street 30,000 sqm Office Leasing Success
As a result of the office consolidation program, 30,000 sqm of office space became surplus after BHP’s Petroleum division relocated to 600 Bourke Street. During a depressed office leasing market, I established a team to sub lease the space which achieved 100% letting to notable premium companies, including Rothchild, Macquarie, CSC, Citigroup,Citigroup, Accenture.
Relocation to a new global headquarters at QV building in Melbourne
A Development of a new global headquarters building for BHP Billiton, comprising 35,000 sqm at the QV complex in Melbourne with the new office lease negotiated in time to beat the market rise. I managed a team of experts to negotiate an innovative integrated lease and construction arrangement.
The innovative strategic alliance/partnering arrangement negotiated with Grocon was widely regarded as a landmark transaction as the construction and delivery of the building and fitout was successfully achieved in a very tight timeframe and under budget. The transaction delivered a 40% reduction in occupancy cost and a return of capital to the company’s reserves.
The development delivered a landmark Melbourne building and new workspace that housed the new global headquarters for the merged entities of BHP and Billiton.
Property Manager – Commonwealth Bank (State Bank of Victoria), 1984 – 1996
Predominantly I was working in areas of Consumer and Business Lending, worked through the demise of the Tricontinental years and merger between the two banks, Human Resources and Property over a career with the bank spanning 11 years.