Interserve seals £37.5m account with Land Securities

Rebecca Smith
Interserve's partnership with Land Securities will see it provide services across eight shopping centres
Interserve's partnership with Land Securities will see it provide services across eight shopping centres (Source: Getty)

Interserve has won a three-year facilities management account with commercial property firm Land Securities, valued at £37.5m.

The support services company announced it would be providing a range of services to Land Securities, including security, cleaning, customer service support and waste management. This would be across eight of its shopping centres, with a ninth – Westgate in Oxford – to be added to the account from 2017.

Under the deal, 560 employees will transfer to Interserve from previous suppliers as part of the new account.

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Interserve’s chief executive Adrian Ringrose, said: “The creation of this partnership is testament to our ability to deliver a cost-effective and integrated service for the retail sector. The customer experience is a critical part of the retail offering and we will work with Land Securities to create the best possible experience for visitors and employees at their centres.”

Last month the firm announced it had won a place on a £4bn department of health construction framework. The ProCure22 framework is the third version of the NHS’s procurement framework that establishes six principle supply chain partners. It had six places available and started this month. It will run for four years.

Interserve has worked with the department of health for 14 years under the predecessor frameworks to Procure22, delivering over £1bn of facilities across 250 projects. It had to re-tender to be accepted onto the latest derivation, highlighting specific areas of investment it felt should be focused on.

Read more: "Subdued" demand for commercial property may hit rents says Land Securities

Its half-year results in August recorded revenues and operating profit up two per cent compared to 2015 and interim dividends increasing by a similar amount. Work pipeline remained the same at £7.6bn, while £1.9bn of work was won during the first six months.

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