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FTSE 100 is carrying a £103 billion lease obligation burden

We have recently published the fifth annual FraserCRE Corporate Occupiers' Report. This latest report is the result of in-depth analysis of the FTSE 100 company accounts and responses from over a 100 leading Corporate Real Estate Managers.

In undertaking this study, we found that the operational lease commitments for the FTSE 100 companies amount to £103 billion. For UK business as a whole, this figure could be approaching £150 billion.

The problem for corporate occupiers is that, in the future, operational lease obligations may have to be reported as a liability. If this happens, property problems won't just be a business headache, they will be a major drain on corporate profitability. The FTSE 100 figure of £103 billion represents 91% of PBIT.

There has, therefore, never been a more pressing time for corporate occupiers to resolve property issues, be it surplus property or lease liabilities. Creative and effective measures have to be taken now to avoid property-related problems hitting the bottom line in the years ahead.

Click here to download a full copy of the report. Alternatively, please contact Cheryl Warren if you would like to receive a copy of the report by post.

Cost Reduction

Delivering bottom line benefits

Real estate typically accounts for c. 17% of a corporate's costs. These costs tend to be long term commitments that only increase.

Effective management of a real estate portfolio through the FraserCRE proven 'six point plan' can achieve both long term cost reduction and directly improve bottom line profits.

Our approach to achieving real savings for clients consists of careful assembly of comprehensive raw data, financial evaluation to produce a strategy compatible with your budget, and then delivering results from a single integrated source of real estate specialists. What makes our approach so different is that our breadth of experience enables us to be innovative. We know that not all the best financial solutions are consistent with the most obvious property strategy.

FraserCRE cost reduction services include:

  • - Budgeting
  • - Compliance cost reduction schemes
  • - Corporate disposal of liabilities
  • - Disposals
  • - Dormant company initiatives
  • - Financial analysis
  • - Financial planning
  • - Financial management
  • - FRS12 evaluations
  • - Fiscal engineering
  • - Occupancy cost analysis
  • - Outsourcing
  • - Tax mitigation

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