Delivering value from the HE estate:lessons and challenges

Sian KilnerKilner Planning

Overview• Total size: >26 million square metres of space• Insurance replacement value : >£60 billion• Income per square metre: >£1,600 (non-residential

net area)• Capital expenditure: £2.2 billion in 11-12• Condition: some 20% still classed as poor (Category C

and D)• Trends

Reasons for wanting to drive change

A wide range including:• Accommodate growth/changes in student and staff

numbers and research and engagement agendas• Support new ways of working and delivery methods• Address the opportunity cost of under-used space

and generate capital receipts for investment• Achieve space efficiencies to deliver cost and carbon

savings• Limits on capital funding

The value of the HE estateHow to define value:

Efficiency in use?Return on capital? Income generation?Output measures?Others?

How to measure performance“Not everything that can be counted counts.Not everything that counts can be counted.” (either Einstein or Cameron)

Working to increase valueAt a strategic level:1. Strategy and forecasts – modelling estate scenarios

and new ways of working and delivery2. Estate performance assessment – targeting the

priorities3. Financial sustainability of the asset base – planning

the investment needed for delivering quality4. Criteria for business cases and prioritising capital

planning

Efficiency, effectiveness and value for money: Phase II

Delivering value from the HE estate is a core issue– Three related strands

• Space utilisation• Sustainability (e.g., carbon reduction)• Research and teaching facilities

– Space utilisation• Benchmarking space utilisation effectiveness• Progress in achieving efficiency gains• Future challenges and next steps