"The focus of DTZ's [image-nocss] role as a real-estate brokerage is real-estate property management such as negotiating office head and sub-leases. Shell's U.S. retail network is almost 100% wholesale, and there is minimal property management need for retail stations in this country. Currently, the United States has not yet been scoped," spokesperson Michael Clingan told CSP Daily News.
"The U.S. is in scope and part of the contract, yet the detailed level of services has not been defined. This will be reviewed as we finalize transitioning of our remaining markets from a direct-delivered fuel model to a wholesale-delivered model as part of our vision of becoming the best fuels retailer in the U.S.," he added.
The management of Shell's fuel stations is the largest property outsourcing project in the oil-and-gas sector so far this year, DTZ told Reuters without providing the value of the deal.
Within the framework of the mandate, Shell will draw on DTZ's expertise in estate management, transactions and portfolio asset management.
Carolyn Gomez, retail real-estate manager for property management for Shell, said, "We look forward to developing a strong relationship with DTZ across these two important regions."
David Jones, from DTZ's Occupier Services team, will lead the account globally, which builds on a strong existing relationship with Shell.
The deal is not typical, said GlobeSt, as fuel stations do not tend to outsource management instead opting to manage the locations with in-house teams based in the particular country. "Shell's action comes in response to further globalization of their operations, a drive for consistency, the need for best practice and to maximize value opportunities across the substantial portfolio, particularly high alternative value sites and strategic locations," according to the source.
News of DTZ's contract win comes as more global corporate occupiers hire specialist property-services firms to help identify ways in which they can cut costs and improve the efficiency of their real-estate portfolios, according to the Reuters report.
Dallas-based 7-Eleven Inc., for example, recently launched a comprehensive review of its real-estate portfolio in key U.S. markets to analyze fair-market values for the company's retail sites and negotiate lease terms, when appropriate, in line with current commercial rental rates. The global retailer engaged Los Angeles-based CB Richard Ellis (CBRE) to conduct the review of the chain's portfolio. (Click here for previous CSP Daily News coverage.)
London-based DTZ is a major global real-estate adviser operating across Europe, Middle East, Africa, Asia Pacific and the Americas. With a team of more than 12,500 property professionals and a system operating across 150 cities in 45 countries, DTZ works with clients to provide real-estate, capital-markets and business solutions worldwide.
Shell Oil Products US, Houston, is in the midst of a three-year process to sell off its retail holdings by 2010. The company is continuing its plan to dissolve its multisite-operator (MSO) partnerships and to grow through the wholesale class of trade, including wholesaler joint ventures, transitioning more markets from direct-supplied to wholesale- or wholesale/joint-venture-supplied markets.
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