Lincoln Harris CSG (the corporate services group of Lincoln Property Company) has provided high-volume transaction services for companies like Wachovia, HealthSouth, Bank of America, HCA, and HCP to name a few. Within our core business lines are optimization services that include lease buyouts, surplus property disposition, lease recasts, facility downsizing / rightsizing, relocations, asset repositioning and subleasing. The following are examples of relatively specialized “high – volume optimization” initiatives handled by CSG.
NATIONAL HEALTHCARE COMPANY
- Buyouts 2003 (specific initiative)
Goal: generate $10 million in gross savings by year end 2003
Results: 101 buyouts were completed in 7.5 months (the average remaining lease term was ± 23 months). Gross savings were $14+ million. Average net savings as a % of remaining obligation was 61% after all costs. Annualized occupancy cost reduction exceeded $5.8 million.
- Buyouts 2004 (business as usual)
Goal: generate maximum, timely reduction of occupancy cost
Results: 36 buyouts were completed in 2004. Gross savings were $11+ million. Average net savings as a % of remaining obligation was 64% after all costs. Annualized occupancy cost reduction exceeded $3.2 million.
- Downsizes 2004 (business as usual)
Goals: (1) maximize costs savings; (2) maximize “savings vs. cost” benefit
Results: 42 downsize / relocations completed. Average beginning size was 5,127 sf, average ending size was 3,119 sf (±39% reduction). Annualized occupancy cost reduction of $1.3+ million.
NATIONAL FINANCIAL INSTITUTIONS
Mergers & Acquisitions (8 separate optimization initiatives)
Goals:
(1) meet the time - sensitive purchase accounting reserves, (2) outperform indicative pricing
Results:
CSG met the M&A goals for each initiative with 100% success. Collectively closed over 700 transactions within prescribed timeframes (including 250+ buyouts / subleases). Additionally, CSG successfully completed over 400 downsizes / relocations. Collectively outperformed the accounting reserves by $42+ million.
|
