Property management company Knight Frank save over £1m on their energy costs

Energy Market Consultancy Case Study

Our Client

Knight Frank is the leading independent, global real estate consultancy providing an integrated prime commercial and residential offering, operating in key hubs across the globe. They are headquartered in London with 370 offices in 55 countries, employing more than 12,000 professionals and spanning five continents.

Founded in 1896 and a Limited Liability Partnership (LLP) since 2003 the firm now advises clients ranging from individual private investors, clients and homeowners to major developers and investors on property investments and developments.

Our Challenge

• Knight Frank manage a large portfolio of commercial buildings on behalf of their clients and appointed Beond in order to deliver competitive energy costs for each building’s tenants.
• The portfolio is fluid as property investors buy and sell sites including large “trophy” buildings.
• Many investors are registered off-shore and energy suppliers find them difficult to credit check.

Our Approach

Beond prepared details of Knight Frank’s clients and issued them to the energy suppliers. We discussed the portfolio with each supplier and clarified the quality of the landlords and their tenants. Knight Frank have purchased electricity and gas using flexible wholesale contracts for a number of years and Beond advised them on the different hedging strategies available.

The Results

• Beond’s unique reverse-engineering tool secured a £54,000 saving for a trophy site being added to the portfolio
• Dedicated team process ≈ 60 site additions or removals per annum and provide Knight Frank with weekly updates
• Five suppliers quoting for the gas and electricity portfolios
• 100% credit check passes for ≈40 landlords and favourable treatment of future buildings coming into the portfolio
• Renewable electricity contract provided
• £935,000 cost avoidance from favourable wholesale purchasing
• £132,000 per annum saving on suppliers’ management fees
• £122,000 cost avoidance from challenging the supplier’s volume assumptions
• Onerous clauses removed from the suppliers’ contracts
• Over 100 sites changed supplier on time. 7 sites transferred late and were compensated by their out-going supplier

“Knight Frank have worked with Beond since 2014 and  working closely with our internal Energy team they have secured very competitive electricity and gas prices for our properties under management. They also provide useful support to the site addition process ensuring timely additions and favourable terms.”

David Goatman, Partner, Department Head of Energy and Sustainability, Knight Frank LLP.

For further information about any of our services please call Beond on 0208 899 7385 or email info@beondgroup.com

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