1.3 This type of deal is attractive to private sector investors, because it provides a relatively secure long-term revenue stream from Government tenants and a large estate on which they can earn revenue from efficient property and facilities management. These factors will also make the deal attractive to other investors should the investor decide to sell the contract.
1.4 At the time that STEPS was being procured, the market for such deals was relatively new. Since the first major deal, PRIME, there have been several similar deals. Abbey National, BT and Bradford and Bingley have all outsourced their property management. There are also other deals in the pipeline. For instance, Bradford Council is tendering for a private sector asset management partner and other local councils are considering similar projects.