£1bn Workplace 2012 Suspended, Amid 'Merger' Talks

Public property outsourcing through Northern Ireland's £1bn Workplace 2010 scheme has been suspended, amid a mooted merger between two firms shortlisted to manage the project, it has been reported.

The outsourcing initiative has been stalled until next year over the possible implications of a Land Securities Trillium and Telereal merger.

Trillium, a leading provider of both outsourcing and public private partnerships, is said to be one of the remaining bidders on the Workplace 2010 project, along with rival Telereal.

However, William Pears Group-owned Telereal is said to be in talks to buy Trillium for a reported £1.4bn.


Northern Ireland's devolved Department of Finance and Personnel said the decision had been taken as a result of "continuing speculation that both bidders could come under common ownership, which has the potential to affect the Workplace 2010 procurement".

"The suspension (until early 2009) will also give the department time to assess the impact of recent changes in the financial and property markets," added the spokesman.

Taxpayers could lose out if the merger takes place, according to the department.

As part of the scheme 3.8m square feet of Northern Ireland’s civil service property portfolio would be outsourced.

Around 80 buildings were scheduled to form the first phase of the Workplace 2010 initiative, equating to 2.7m square feet of floor space.

The estate's annual running costs are around £90m.

Workplace 2010 has been marred by delays following legal action taken by under bidders Partenaire.

It was originally hoped the scheme would fast tracked in June.

(PR/JM)