Service Charge Expenditure Report 2016-17

123 Victoria Street

London - Offices
 Meet Landsec
Welcome to Landsec

Land Securities,
Explanation of Schedules
Actuals 2016-17

meet Landsec Apportionment

Summary of Variances

Our new brand isn’t just a new

name and logo, it’s founded on
a brand idea and a philosophy
that moves us on from the idea
of placemaking into a focus on
customers and experiences.

Visit landsec.com

Everything is experience

Anchor-Meet
Service Charge Expenditure Report 2016-17 2
 Meet Landsec
Welcome to Landsec
Explanation of Schedules
Actuals 2016-17
Apportionment
Summary of Variances

to Landsec
Welcome
Garret O’Neill, One New Change

Anchor-Welcome
Service Charge Expenditure Report 2016-17 3
 Welcome to Landsec Meet Landsec
Welcome to Landsec
Explanation of Schedules
Actuals 2016-17
Apportionment
Summary of Variances

123 Victoria Street - Offices

“We are pleased to report that overall
there has been a 1.1% underspend against
the service charge budget.”

Welcome to the 2016/2017 Service

Charge Reconciliation Booklet for
123 Victoria Street. As with previous
years, this booklet has been prepared to
provide customers with details of actual
service charge expenditure over the last
financial year.

to Landsec
We have achieved significant savings
against utilities through a number of
energy reduction measures, but these have
largely been offset by several unforeseen

Welcome
repairs to plant within the building and an
enhancement to the security resource.
We are consistently achieving over 80%
recycling for the property, which is a
fantastic achievement.
As previously advised, we have now
completed the re-tendering of the
security, cleaning and engineering
maintenance contracts, which came into
effect from 1st April 2017. We are pleased
to report that all service partners retained
One New Change

their contracts for a further 3-5 years.

I hope you find this booklet useful and
Operations Manager

that it meets with your requirements.

However, if you have any specific
questions about the information provided
then please do not hesitate to contact me.
Patel
O’Neill,
GarretHiren

Warm regards

Hiren Patel
Operations Manager

Service Charge Expenditure Report 2016-17 4

 Welcome to Landsec Meet Landsec
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Explanation of Schedules
Actuals 2016-17
Apportionment
Summary of Variances

Inside this document Certification

Our Obligations
As a responsible Landlord we have a
duty of care to act with professional
care, diligence, integrity and objectivity
in managing the provision of services
within the property.
For best practice, we endeavour to
provide our Customers with the
following key elements;
— Service Charge Customer Statement
Schedule of Assumptions Certification Period
and Exclusions 1 April 2016 to 31 March 2017
Empty Unit Voids and Caps - Building
We pay the service charge for
123 Victoria Street - Offices
any void or empty unit and any
service charge contribution which
is reduced as a result of any form
of concession or capping. I hereby certify that the attached
statement of reconciled service charge
Service Charge Exclusions -
expenditure records the true cost to the
The service charge costs
Landlord of providing the services to

— Service Charge Expenditure Report
— Service Charge Allocation
and Apportionment
— Service Charge Operational
Overview of Variances
Actuals
This report has been produced by
Landsec, the Landlord of the property,
and relates to the service charge period
of 1st April 2016 - 31st March 2017.
This service charge statement was
prepared on an accruals basis.
Royal Institution of
Chartered Surveyors
(RICS) Code of Practice,
Garret O’Neill, One New Change
will NOT include:
— Initial costs in relation
to the original design
and construction
— Setting up costs that are part
of the original development
— Improvement costs above normal
maintenance, repair or
replacement except where an
improvement can be justified
to provide benefit to the occupiers
— Redevelopment costs
— Costs which relate to
individual occupiers
Payment of Interest -
It is our policy not to apply
to Landsec
the property for the period 01/04/2016
to 31/03/2017, in accordance with
the terms of the lease and, where
practicable, the RICS Code of Practice
Service Charges in Commercial
Welcome
Property (Third Edition).
At year end there are amounts
totalling £94,633.74 which have been
provided for in the service charge
expenditure - these allowances have
been made to account for expenditure
where invoices have not been received.
Signed:

Third Edition interest to on-account service

This report has been produced having
regard to the best practice guidelines
for service charges in commercial
property and endorses the principles
set out in the third edition of the
RICS Code of Practice.
Both Landsec and the Tenant are still
bound by the existing lease terms,
which take precedence over the Code
of Practice, but would encourage our
occupiers, like ourselves, to be guided
by The Code wherever possible.
charge contributions. However,
we do not apply any of our bank
charges back to the service charge.
VAT
Semiha Richens
The Landlord has chosen to Senior Finance Manager - London
opt to tax 123 Victoria Street. Landsec
All service charge expenditure is
shown exclusive of VAT. VAT will be
charged at the appropriate rate on all
service charge payments demanded/
invoiced by the Landlord.

Service Charge Expenditure Report 2016-17 5

 Meet Landsec
Welcome to Landsec
Explanation of Schedules
Actuals 2016-17
Apportionment
Summary of Variances

of Schedules
Explanation
Alia Hashem, N0VA, Victoria

Anchor-Schedules
Service Charge Expenditure Report 2016-17 6
 Explanation of the Schedules Meet Landsec
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Explanation of Schedules
Actuals 2016-17
Apportionment
Summary of Variances

Schedules The cost summaries on the following

pages show the actuals for the service
charge year and identify the allocation
The service charge schedules are set out as follows; of costs across the various elements
MAIN ENTRANCE Services which benefit office customers of the property (i.e. schedules). Where
with access via the Victoria Street entrance. there is more than one schedule there
is a separate column on the Allocation
ALL Services which benefit both retail and office customers.
of Costs Summary for each. This is to
CATHEDRAL RECEPTION Services which benefit office customers with ensure that costs are appropriately

of Schedules
access via the Cathedral entrance. allocated and that customers only
LOADBAY Services which benefit the retail customers contribute toward the services

Explanation
SPLIT FLOOR Services which benefit office customers with split floors. from which they benefit.
CARPARK Services which benefit office customers.
LIFTS G-5 Services which benefit office customers.
SPECIAL UNIT A contribution made by Gymbox which
credits the ALL schedule.
Alia Hashem, N0VA, Victoria

Service Charge Expenditure Report 2016-17 7

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Explanation of Schedules
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Actuals
2016-17
62 Buckingham Gate
Perry Locke,

Anchor-Actuals
Service Charge Expenditure Report 2016-17 8
 Actuals - Overview Meet Landsec
Welcome to Landsec
Year Ending 31 March 2017
Explanation of Schedules
Actuals 2016-17
Apportionment
Summary of Variances

123 Victoria Street - Offices

Actuals
2016-17
£2,185,876
Total Actuals

Figures rounded to the Management and Insurance £357,576 16.4%

62 Buckingham Gate

nearest decimal point.

Utilities £232,026 10.6%
Soft Services £950,433 43.5%
Perry Locke,

Hard Services £591,714 27.1%

Exceptional Expenditure £54,126 2.5%

Service Charge Expenditure Report 2016-17 9

 Actuals - Expenditure Summary Meet Landsec
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Year Ending 31 March 2017
Explanation of Schedules
Actuals 2016-17
Apportionment
Summary of Variances

123 Victoria Street - Offices

Service Charge Expenditure Schedule

Actual (£) Budget (£) Variance (£) Variance (%) Actual (£)
2016-2017 2016-2017 2016-2017 2016-2017 2015-2016
Management
Management Fees 72,162 72,162 0 0.0% 69,213
Site Management Resources 259,111 275,436 (16,324) (5.9%) 250,250
Health, Safety & Environmental 19,015 14,557 4,458 30.6% 17,647
Management Sub-total 350,289 362,155 (11,866) (3.3%) 337,110

Utilities
Electricity 191,720 267,469 (75,749) (28.3%) 231,078
Gas 11,730 19,709 (7,979) (40.5%) 17,184
Fuel Oil (Heating) 0 3,000 (3,000) (100.0%) 0
Water 28,576 30,919 (2,343) (7.6%) 30,265
Utilities Sub-total 232,026 321,097 (89,071) (27.7%) 278,527

Soft Services
Security 688,970 654,509 34,461 5.3% 662,155
Cleaning & Environmental 261,463 260,237 1,226 0.5% 242,242
Actuals
Soft Services Sub-total 950,433 914,746 35,687 3.9% 904,397

Hard Services
Mechanical & Electrical Service
Lift & Escalators
492,650
36,726
464,848
38,858
27,802
(2,132)
2016-17
6.0%
(5.5%)
466,207
37,263
Suspended Access Equipment 8,894 9,537 (643) (6.7%) 7,096
Fabric Repairs & Maintenance 53,444 35,759 17,685 49.5% 59,561
Hard Services Sub-total 591,714 549,002 42,712 7.8% 570,127
62 Buckingham Gate
Perry Locke,

Service Charge Expenditure Report 2016-17 10

 Actuals - Expenditure Summary Meet Landsec
Welcome to Landsec
Year Ending 31 March 2017
Explanation of Schedules
Actuals 2016-17
Apportionment
Summary of Variances

123 Victoria Street - Offices

Service Charge Expenditure Schedule

Actual (£) Budget (£) Variance (£) Variance (%) Actual (£)
2016-2017 2016-2017 2016-2017 2016-2017 2015-2016
Insurance
Engineering Insurance 7,287 7,440 (152) (2.0%) 11,154
Insurance Sub-total 7,287 7,440 (152) (2.0%) 11,154

Exceptional Expenditure
Major Works 54,126 55,201 (1,075) (1.9%) 27,881
Exceptional Expenditure Sub-total 54,126 55,201 (1,075) (1.9%) 27,881

Special Unit Account

Special Unit Account 27,837 0 27,313 0.0% 11,494
Special Unit Account Sub-total 27,837 0 27,313 0.0% 11,494

Special Unit Contra Account

Special Unit Contra Account (27,837) 0 (27,313) 0.0% (11,494)
Special Unit Contra Account Sub-total (27,837) 0 (27,313) 0.0% (11,494)
Actuals
Total 2,185,876 2,209,641 (23,766) (1.1%) 2,129,195

2016-17
62 Buckingham Gate
Perry Locke,

Service Charge Expenditure Report 2016-17 11

 Actuals - Expenditure Summary Meet Landsec
Welcome to Landsec
Year Ending 31 March 2017
Explanation of Schedules
Actuals 2016-17
Apportionment
Summary of Variances

123 Victoria Street - Offices

Allocation of Costs (1 of 2)
UNIT
TOTAL ALL CARPARK CATHREC LIFTSG-5 LOADBAY MAINENTR SPLITFLR SPECAIL
Management
Management Fees 72,162 15,809 1,154 7,650 1,150 4,474 40,409 1,516 0
Management Fees 72,162 15,809 1,154 7,650 1,150 4,474 40,409 1,516 0
Site Management Resources 259,111 153,894 0 21,379 0 0 83,838 0 0
Staff Costs 109,498 109,498 0 0 0 0 0 0 0
Site Offices/Accommodation 80,754 44,396 0 7,477 0 0 28,881 0 0
Postroom Costs 68,137 0 0 13,627 0 0 54,509 0 0
Catering 722 0 0 274 0 0 448 0 0
Health, Safety & Environmental 19,015 15,807 138 316 0 138 2,616 0 0
Health & Safety 19,015 15,807 138 316 0 138 2,616 0 0
Management Sub-Total 350,289 185,510 1,292 29,345 1,150 4,612 126,864 1,516 0

Utilities
Electricity 191,720 7,300 9,904 23,793 6,077 11,143 127,444 6,059 0
Electricity Lighting 158,471 7,300 7,140 18,598 198 8,310 111,206 5,719 0
Electricity - Lifts/Escalators 22,955 0 2,209 3,864 5,538 2,209 9,135 0 0
CRC Electricity 10,293 0 555 1,331 341 625 7,103 340 0
Gas 11,730 0 0 1,665 0 0 10,065 0 0
Actuals
Actuals
Gas 10,338 0 0 1,555 0 0 8,784 0 0
2016-17

CRC Gas
Water
Water
Utilities Sub-Total

Soft Services
Security
Security
Cleaning & Environmental
Cleaning
1,392 0 0 110
28,576 0 0
28,576 0 0
232,026 7,300

688,970 245,665
688,970 245,665
261,463
176,446
8,139
16
9,904

0
1,991
0
2016-17
4,286
4,286
29,744

0 89,928
89,928
31,370
17,543
0 0
0 0
0 0
6,077 11,143
1,282 0 0
24,290 0 0
24,290 0 0
161,798

0 58,866 294,511
0
0
0
58,866
37,033
0
294,511
154,679
136,850
6,059

0
0
28,250
22,037
0
0
0
0
0
62 Buckingham Gate

Waste Management 56,178 0 1,552 7,251 0 37,033 10,341 0 0

Housekeeping / Sundry Costs 21,546 2,410 439 5,809 0 0 6,675 6,213 0
Perry Locke,

Landscaping (External) 5,713 5,713 0 0 0 0 0 0 0

Seasonal Decorations 1,580 0 0 766 0 0 814 0 0
Soft Services Sub-Total 950,433 253,804 1,991 121,299 0 95,899 449,190 28,250 0

Service Charge Expenditure Report 2016-17 12

 Actuals - Expenditure Summary Meet Landsec
Welcome to Landsec
Year Ending 31 March 2017
Explanation of Schedules
Actuals 2016-17
Apportionment
Summary of Variances

123 Victoria Street - Offices

Allocation of Costs (2 of 2)
UNIT
TOTAL ALL CARPARK CATHREC LIFTSG-5 LOADBAY MAINENTR SPLITFLR SPECAIL
Hard Services
Mechanical & Electrical Services 492,650 20,672 18,280 48,061 0 17,567 385,906 2,163 0
Fire Precautions Maintenance 29,062 0 324 3,202 0 324 25,212 0 0
General Engineering Maintenance 246,698 14,340 10,732 19,842 0 9,949 191,800 34 0
General Engineering Repairs 27,661 3,475 2,035 5,738 0 2,035 14,379 0 0
Lighting/Electrical Maintenance 96,782 0 2,071 4,539 0 2,071 85,971 2,129 0
Lighting/Electrical Repairs 1,270 0 0 635 0 0 635 0 0
Heat/Air Con/Comfort
Cooling Maintenance 91,177 2,858 3,118 14,105 0 3,188 67,909 0 0
Lift & Escalators 36,726 55 0 4,833 12,623 4,920 14,295 0 0
Lift/Escalator Maintenance 35,452 55 0 4,630 12,395 4,724 13,647 0 0
Lift/Escalator Repairs 1,274 0 0 202 228 196 648 0 0
Suspended Access Equipment 8,894 8,361 0 79 0 0 454 0 0
Suspended Access Equipment 8,894 8,361 0 79 0 0 454 0 0
Fabric Repairs & Maintenance 53,444 28,289 2,964 4,400 0 3,117 14,675 0 0
Internal Maintenance 19,838 2,652 1,890 3,780 0 3,117 8,400 0 0
Internal Repairs 12,519 4,551 1,074 620 0 0 6,275 0 0
External Maintenance 6,476 6,476 0 0 0 0 0 0 0
Actuals
Actuals
External Repairs 14,612 14,612 0 0 0 0 0 0 0
2016-17 Hard Services Sub-Total

Insurance
Engineering Insurance
Lift/Escalator Insurance
General Engineering
Insurance/Inspection
Insurance Sub-Total
7,287
3,049

4,239
7,287

Exceptional Expenditure
591,714

194
0

194
194
24
0

24
24
57,378

1,984
455

1,530
1,984
973
973

0
973
21,244

196
110

87
196
2016-17
57,372

3,915
1,512

2,404
3,915
0
0

0
0
0
0

0
0
12,623 25,604 415,330 2,163 0
62 Buckingham Gate

Major Works 54,126 54,126 0 0 0 0 0 0 0

Major Building Works 54,126 54,126 0 0 0 0 0 0 0
Perry Locke,

Exceptional Expenditure Sub-Total 54,126 54,126 0 0 0 0 0 0 0

Special Unit Account

Special Unit Account 0 (27,837) 0 0 0 0 0 0 27,837
Special Unit Account 0 (27,837) 0 0 0 0 0 0 27,837
Special Unit Account Sub-Total 0 (27,837) 0 0 0 0 0 0 27,837

Total 2,185,876 530,475 34,456 239,745 20,823 137,454 1,157,098 37,988 27,837

Service Charge Expenditure Report 2016-17 13

 Meet Landsec
Welcome to Landsec
Explanation of Schedules
Actuals 2016-17
Apportionment
Summary of Variances

Apportionment
Service Charge
Flossy Nwofor, 100 Victoria Street

Anchor-Apport
Service Charge Expenditure Report 2016-17 14
 Service Charge Apportionment Meet Landsec
Welcome to Landsec
Year Ending 31 March 2017
Explanation of Schedules
Actuals 2016-17
Apportionment
Summary of Variances

123 Victoria Street - Offices

FACTORS ACTUALS

Aportinment
Flossy Nwofor, 100 Victoria Street

Address
1st Floor 123 Victoria Street
Part 2nd Floor 123 Victoria Street
Part 3rd Floor 123 Victoria Street
4th Floor (Zone A) &
1 Car Parking Space 123 Victoria Street
5th Floor 123 Victoria Street
6th Floor 123 Victoria Street
7th Floor 123 Victoria Street & 4 Car Spaces
8th Floor 123 Victoria Street & 4 Car Spaces
9th Floor 123 Victoria Street & 4 Car Spaces
10th Floor 123 Victoria Street & 4 Car Spaces
11th Floor 123 Victoria Street & 4 Car Spaces
1st/2nd Floors (Piazza) & 2 Car Spaces
4th Floor (Piazza) & 1 Car Parking Space
Part 2nd Floor 123 Victoria Street
Part 3rd Floor 123 Victoria Street
3rd Floor (Piazza) & 1 Car Parking Space
107/111 Victoria Street
113 Victoria Street
115/117 Victoria Street
119/121 Victoria Street
125 Victoria Street
131 Victoria Street Grnd & Basemt
133 Victoria Street
135 Victoria Street
137 Victoria Street
139 Victoria Street
141 Victoria Street
143 Victoria Street
145 Victoria Street
147 Victoria Street
149/151 Victoria Street
127/129 Victoria Street
Part Sub Basement 123 Victoria Street
Car Spaces

Service Charge Expenditure Report 2016-17

13.38%
4.30%
4.03%

7.79%
7.21%
4.98%
3.89%
3.61%
2.85%
2.72%
2.66%
7.43%
1.25%
8.04%
7.78%
4.17%
1.72%
1.36%
1.08%
1.44%

0.82%
0.72%
0.57%
0.60%
0.52%
Apportionment
18.27%
5.87%
5.50%

10.64%
9.84%
6.80%

3.89%

0.00%
0.00%
0.00%

0.00%
0.00%
0.00%
0.00%
0.00%

MAIN

Service Charge
5.31%
4.93%

3.71%
3.64%
0.00%
0.00%
10.98%
10.62%
0.00%
0.00%
2.56%
2.56%
2.56%

2.56%
0.00%
0.00%
10.26%
10.26%
10.26%
10.26%
10.26%
5.13%
2.56%
5.13%
2.56%
2.56%
0.00%
0.00%
0.00%
0.00%
0.21% 0.00% 0.00% 0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.06% 0.00% 0.00% 0.00%
0.45%
0.55%
0.71%
1.67%
1.44%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00% 0.00% 20.51% 0.00%

100% 100% 100% 100% 100%

0.00%
0.00%
0.00%

0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
12.58%
9.94%
7.93%
10.56%

5.98%
5.30%
4.15%
4.37%
3.85%

3.27%
4.03%
5.23%
12.25%
10.57%
0.00%
SPLIT
FLOOR CATHEDRAL
ALL ENTRANCE CARPARK LOADBAY C/PTS LIFTSG-5
0.00%
17.81%
16.69%

0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
33.30%
32.20%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%

100% 100% £27,837

25.47%

£530,475
8.19%
7.67%

14.83%
13.73%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
15.31%
14.81%
0.00%
0.00%
0.00%
0.00%
0.00%

0.00%
0.00%
0.00%
0.00%
0.00%

0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
RECEPTION

£1,157,098
0.00%
0.00%
0.00%

0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%

0.00%
0.00%
0.00%
0.00%
SPECIAL

57.81%
9.72%
0.00%
0.00%
32.47%

0.00% 0.00% 1,112

0.00%
0.00%
0.00%
0.00%
0.00%
0.00% 0.00% 337
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00% 0.00%

£34,456
UNIT

27,837

£137,454
22,808
21,379

41,319
38,242
26,425
20,609
19,153
15,120
14,416
14,132
39,423
6,626
42,646
41,248
22,140
9,107
7,192
5,739
7,644

4,326
3,838
3,003
3,159
2,783

2,364
2,916
3,788
8,868
7,651

£37,988
-
-
MAIN

67,937
63,682

123,076
113,911
78,713
61,388
57,051
45,039
42,942
42,095

127,030
122,864
-
-

-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
883
883

883
-
-
3,534
3,534
3,534
3,534
3,534
1,767
883
1,767
883
883
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
- 7,068

£20,823 £239,745
-
-

-
-
-
-
-
-
-
-
-
-
-
-
-
17,294
13,659
10,898
14,517
-
8,216
7,289
5,704
6,000
5,286

4,489

16,842
14,530

£2,185,876
-

5,538
7,193

-
-
SPLIT
FLOOR CATHEDRAL
ALL ENTRANCE CARPARK LOADBAY C/PTS LIFTSG-5 RECEPTION
70,961 211,370 883 - -
6,765
6,341

-
-
-
-
-
-
-
-
-
-
12,649
12,234
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
5,304
1,705
1,598

3,088
2,858
-
-
-
-
-
-
-
-
3,187
3,083
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-

-
-
-
-
-
-
-
-
138,606
23,296
-
-
77,843
-
-
-
-

-
-
-
-
-
TOTAL
288,518
100,097
93,884

168,366
155,011
105,139
85,531
79,738
63,693
60,892
59,761
179,796
30,805
187,279
180,312
100,867
26,401

- 337
-
-
-
-
-
-
20,851
16,637
22,160
- 1,112
12,542
11,127
8,707
9,159
8,069

6,853
8,455
10,980
25,710
22,180
27,837
- 7,068

15
 Meet Landsec
Welcome to Landsec
Explanation of Schedules
Actuals 2016-17
Apportionment
Summary of Variances

of Variances
Summary
16 Palace Street
Jordon Joseph,

Anchor-Variances
Service Charge Expenditure Report 2016-17 16
 Summary of Variances Meet Landsec
Welcome to Landsec
Year Ending 31 March 2017
Explanation of Schedules
Actuals 2016-17
Apportionment
Summary of Variances

123 Victoria Street - Offices

Service Charge Actuals

% Variance
against forecast

-1.1%

of Variances
Summary
-10% to -5%
-5% to 0%
£2,209,641
Forecast (£)
0% to +5% 2016 - 2017
+5% to +10%

£2,185,876
16 Palace Street
Jordon Joseph,

Actuals (£)
2016 - 2017

Service Charge Expenditure Report 2016-17 17

 Summary of Variances Meet Landsec
Welcome to Landsec
Year Ending 31 March 2017
Explanation of Schedules
Actuals 2016-17
Apportionment
Summary of Variances

123 Victoria Street - Offices

Variances listed below are where actual spend was +/- %5 or +/-£20k to budget. There are positive and
negative variances contained within the summary schedule, the major financial variances are explained.

Management Utilities

£362,155 £321,097

of Variances
Budget (£) Budget (£)

£350,289 £232,026
Actual (£) Actual (£)

(£11,866)
Variance (£)
(£89,071)
Variance (£) Summary
Site Management Resources Electricity
With the network maintenance provider A number of energy reduction measures
entering the final year of their contract, the including plant optimisation and lighting
warranty renewal for the I.T. hardware was not improvements have contributed to savings
put in place at the beginning of the financial year in electricity costs through the year.
which led to an underspend against this heading.

Gas
Health, Safety & Environmental Improving the operation of boilers has reduced
There is an overspend against this heading due gas costs through the year. Lower unit rates for
to learning and development training that was gas have also contributed to savings.
required for new staff. Following the annual
asbestos inspection, works were required to
Fuel Oil (Heating)
be carried out to the woven rope packer in the
16 Palace Street

generator room in the basement. This is a contingency sum included to cover

Jordon Joseph,

fuel costs should the generator be needed,

which this year it was not.

Water
Water costs throughout the year were lower
than forecast due to lower consumption in
the building.

Service Charge Expenditure Report 2016-17 18

 Summary of Variances Meet Landsec
Welcome to Landsec
Year Ending 31 March 2017
Explanation of Schedules
Actuals 2016-17
Apportionment
Summary of Variances

123 Victoria Street - Offices

Variances listed below are where actual spend was +/- %5 or +/-£20k to budget. There are positive and
negative variances contained within the summary schedule, the major financial variances are explained.

Soft Services Hard Services

£914,746 £549,002

of Variances
Budget (£) Budget (£)

£950,433 £591,714
Actual (£) Actual (£)

£35,687
Variance (£)
Security
There is an overspend on this line due to the
introduction of additional out of hours security in
2015/16 to ensure 3 officers on shift at all times,
providing much greater security and continuity of
service to the building. This change was introduced
after forecasting of the 2016/17 budget was completed.
£42,712
Variance (£) Summary
Mechanical & Electrical Service
This year saw an increase in reactive works that
were business critical, such as the replacement of
gas regulation valves; cleaning and chlorination of the
cold-water systems; replacement of the Simmtronic
lighting control head end due to age and the
replacement of the AHU 5 fan/motor.

Lift & Escalators

There is an underspend on this line following
receipt of a performance based rebate from Kone
for the 2015-17 period.

Suspended Access Equipment

16 Palace Street

There is an underspend against this line as we

Jordon Joseph,

did not need to utilise the full amount we had

budgeted for repairs.

Fabric Repairs & Maintenance

There is an overspend against this heading due to
extensive works that were needed to the stone work
under the arch at 123 Victoria Street; improvements to
the welfare facilities were made, that are used by all the
onsite team members and repairs to the floor outside lift
1 in the main reception.

Service Charge Expenditure Report 2016-17 19

 Contacts
Hiren Patel
Publication No. 9524000-SCE16/17

Operations Manager
Landsec
16 Palace Street, London SW1E 5JD
D/L: +44 (0) 207 932 2598
Mobile: +44 (0) 759 520 6569
hiren.patel@landsec.com
landsec.com

David Payne
General Manager
Landsec
100 Victoria Street, London SW1E 5JL
D/L: +44 (0) 207 024 3837
Mobile: +44 (0) 759 044 4048
david.payne@landsec.com
landsec.com

Ann-Marie Khan
Operations Director
Landsec
100 Victoria Street, London SW1E 5JL
D/L: +44 (0) 207 002 8971
Mobile: +44 (0) 7710 307 920
ann-marie.khan@landsec.com
landsec.com

Land Securities Group PLC

100 Victoria Street, London SW1E 5JL
+44 (0)20 7413 9000
investor.relations@landsec.com

landsec.com