Single Scottish Estate: case studies

Overview

Property & Construction Division (PCD) provided support to Transport Scotland (TS) in the acquisition of new, net zero carbon headquarters office space in Glasgow. Work included procuring advisers, supporting development of the business case, property controls process, ministerial submissions and review of legal documents, construction contract and collateral warranty packages.

The acquisition occurred on the fringe of the pandemic so more space was acquired than was eventually needed, which created an opportunity for greater financial efficiency.

Solution

Prior to acquisition, PCD reviewed the original space request, identifying that TS had originally planned to acquire more space than needed. PCD agreed a space reduction with TS to reduce requirements by 12,500 square feet.

Transport Scotland and the NHS Health Boards’ swift embracing of new hybrid working practices in addition to their progressive mindset towards wider public sector efficiencies and Public Service Reform, opened the door to impacts in line with the SSE Programme vision and principles.

PCD brokered a deal, with Transport Scotland, NHS Education for Scotland and NHS Public Health Scotland working through the practical detail of any agreement with the overarching aim of both health bodies occupying the 4th floor (24,910 square feet) of 177 Bothwell Street, co-locating with Transport Scotland and delivering significant savings to both parties.

Outcomes

Transport Scotland and NHS bodies worked together with the SSE team to support the opportunity to deliver improved space and financial efficiencies for the benefit of all parties.

Collaboratively the project anticipates overall cost savings and excess cost avoidance of circa £15 million to the public purse over a 10 year lease period, supporting three public bodies into new net zero carbon office facilities and delivered circa 28,500 square feet reduction in the size of the public sector Glasgow office estate.

SSE Programme: collaboration and partnership working towards impactful benefits and efficiencies