Case study

Property advice for one of the UK’s largest landowners

The Ministry of Defence (MoD) owns approximately one percent of the UK land mass — everything from airfields to firing ranges and office blocks. As adviser to the Defence Infrastructure Organisation (DIO) — the group that owns and manages the MoD’s estate — Deloitte was asked to develop a commercial model that would support the rationalisation of the MoD’s portfolio, reduce running costs and increase utilisation of the estate. We subsequently selected a strategic business partner to support the delivery of those objectives.

The model we developed for the DIO has resulted in the first major procurement with no asset transfer to the private sector, and the first model in the public sector real estate market involving a significant element of ‘payment by results’. The partner offers the DIO access – at no extra cost – to its wider specialist market knowledge, resources and skills.

The resulting savings from the new business model are estimated at hundreds of millions of pounds a year for a 10-year contract. Similar structures are now being considered for other government real estate portfolios and could be applied elsewhere in the public sector.

“Deloitte brought market intelligence, challenge and insight. They provided more than just advice —they also brought practical, skilled, and high-quality resource, and formed a close working relationship with our team. Working with them has been a hugely positive experience. The work is both very impressive and ground-breaking in many ways.”

David Marsh, Director of Business Partnering, Defence Infrastructure Organisation, Ministry of Defence

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