Winning Ways
 

A review of the major deals struck in the local government market over the past quarter.
 

March

Croydon LBC reveals it is looking for a private finance initiative partner for what is describes as the “biggest single investment in the borough’s history”. The proposed seven-year deal will be worth around £40m.

CSL lands a £1.5m business rates collection contract from Wandsworth and a five-year extension from the Corporation of London.

Enfield LBC signs a £60m PFI deal with the Laing Hyder consortium to build a new secondary school in the west of the borough.

Jarvis is named as North Wiltshire DC’s PFI partner in a £50m project to build new offices and homes.

Tesco strikes a £28m deal with Daventry to build a supermarket and invest in new housing and school facilities.

Ceredigion CC chooses New Schools, a joint venture between developer WS Atkins and financier Innisfree, as its preferred partner in an £11m, 30-year deal to build a new school in Aberystwyth.

April

Kent CC agrees to sell nine residential care homes to independent care provider Abbeyfield.

SG Asset Management wins a £200m-plus brief from the Leicestershire CC pension fund - the firm’s first council mandate.

Environment minister Nick Raysnford agrees to look into claims that Worcestershire CC struck a £500m waste management PFI deal with Focsa under a “veil of secrecy”.

Perth and Kinross Council completed a £20m PFI contract for new offices with the Kinnoull House project - a joint venture between Morrison Construction and the Royal Bank of Scotland.

Investec Guinness flight is awarded a £40m cash management mandate by Telford and Wrekin Council following its record-breaking housing transfer. Hill Samuel and Invesco pick up £30m briefs.

North East Lincolnshire Council hands a £45m wasted management contract to French firm Laurent Bouillet Ingenierie.

Croydon LBC awards legal services contracts to three firms of solicitors: Donne, Mileham and Haddock, Steele & Co and Wragge & Co.

State Street Global Advisors lands a mandate to passively manage a quarter of the £1 billion Aberdeen City Council pension fund, while Friends Ivory & Sime picks up a £20m socially responsible investment brief.

ICL agrees to pay out a total of £750,000 to Castle Point BC and Staffordshire Moorlands DC following problems with revenues and benefits software.

Staffordshire CC sells its waste management company to Biffa Holdings for £26m. Kent CC chooses Capita to manage its payroll service in a deal worth more than £10m. Knowlsely MBC announces it wants to set up a joint venture company with Vertex for a multi-service customer contract centre.

May

Itnet is chosen by Enfield LBC as preferred supplier for its IT services in a contract worth £60m over a decade. Lincolnshire CC pension fund hires the Manifest Voting Agency for £25,000 to help it vote the shares in its £440m UK equity portfolio.

Kirlees MBC shortlists three for a £60m schools PFI project: the Focus consortium, led by Bovis, the New Schools consortium, led by WS Atkins, and Jarvis Projects.

Newham LBC pension fund announces that Phillips & Drew will lose at least half of its £150m investment mandate under fund restructuring. Prudential Portfolio Managers is to keep its brief.

Brent LBC awards a £6m parking enforcement contract to Sureway Parking Services and IT consultant Cap Gemini.

Law firm Nabarro Nathanson forms a legal services partnership with Lewisham LBC, under which both parties agree not to compete against each other for legal work from other agencies in the borough.

Ford contributes £300m to the council-led Dagenham Regeneration project. Asda strikes a £27m agreement with Wrexham CBC to allow the council revamp seven schools and the supermarket chain to build a new store.

Rhidian Wynn Davies, Public Treasurer
June, 1999

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