1. Mapeley offered the lowest price by around £500 million (Figure 2) and its bid was also some £300 million lower than retaining the estate in the public sector, the best alternative to a PFI deal.2
Figure 2: Prices at selection of preferred bidder (£000 million)
Mapeley | 1.43 |
Servus | 1.92 |
Trillium | 1.98 |
Source: C&AG's Report
2. Mapeley had not had any experience of the property outsourcing market before bidding for the STEPS deal. Nevertheless, Mapeley's shareholders were experienced in property management around the world and wanted to enter the developing market for such services in the UK. Mapeley had paid the Departments £220 million for the estate and will pay a further £150 million over the first ten years of the contract, through reductions in the annual charges paid by the Departments.3
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2 C&AG's Report, para 9