Complex Estates

Navigating the complexity: Key takeaways from the "Complex Estates Management" webinar

The management of estates is never simple but for large, multi-use, and multi-tenure portfolios, the complexity scales rapidly. In Bellrock's recent webinar, “Complex Estates Management”, this intricate subject was tackled head-on with clarity, expertise and a wealth of practical insight.

Hosted by James Haysmond, Solutions Director at Bellrock and presented by Andrew Morley, Head of Real Estate and former RICS Chairman, this hour-long session unpacked the major operational, legal and strategic considerations involved in managing complex estates.

Here are the top takeaways.

What defines a “complex estate”?

At its core, a complex estate is one with:

• Multiple properties and asset types

• Mixed tenures (freehold, leasehold, subleases)

• Diverse uses (e.g. retail, residential, healthcare, offices)

• Layered service requirements (e.g. public realm, critical services, compliance)

Examples discussed included Canary Wharf and hospital estates, highlighting the variation and scale that make management especially challenging.

Strategy begins with policy

Andrew emphasized that effective estate management starts with a clear strategic asset policy, supported by:

• A strategic asset strategy

• An asset management plan (ideally aligned with ISO 55000 standards)

This framework creates the structure needed to manage compliance, risk, service delivery and long-term planning across a diverse estate.

It all comes down to data

The central theme of the webinar was clear: data is everything.

“To deal with the unknown unknowns,” said Andrew, “you need data.”

Key recommendations included:

• Conduct lease audits to understand ownership, obligations, and event-based dates (like break clauses, rent reviews)

• Maintain up-to-date, digitised tenancy schedules

• Use integrated platforms to consolidate lease data with building management and compliance systems

Systems that support the whole lifecycle

The right technology underpins successful estate operations. Andrew stressed the importance of:

• Computer-aided Facilities Management (CAFM) and Integrated Workplace Management Systems (IWMS)

• Lifecycle plans and Planned Preventative Maintenance (PPM)

• Risk and compliance tracking systems with digital alerts and KPIs

These tools ensure estates are both operationally efficient and legally compliant, and enable more granular service charge recoveries.

Procurement and accounting must work together

Poor coding in FM contracts can severely limit transparency. Andrew flagged key concerns:

• Lack of granular cost attribution

• Averaged or bundled costs that are hard to audit

• A mismatch between procurement structures and accounting requirements

He also highlighted widespread issues in accrual accounting, including examples where incorrect or speculative accruals had inflated service charges by hundreds of thousands of pounds.

Apportionment: The devil in the details

When recovering service charges across multiple occupiers, clarity is critical. Common apportionment methods include:

• Net internal area (NIA) most typical

• Prescribed percentages simple, but often inflexible

• Benefit-based allocation fair in theory, complex in practice

Andrew stressed the importance of accurate lease plans and CAD data particularly ensuring CAD teams are aligned with lease documentation to prevent material errors.

ESG and net zero planning

The discussion moved to green initiatives and how landlords can incorporate sustainability measures into service charges. The challenges?

• Short-term tenants resist long-payback investments

• Leases often don't provide for energy improvement recoveries

• Transparency and early engagement are key

Andrew encouraged landlords to view ESG improvements as value protection, not just operational upgrades impacting rent, tenant satisfaction and ultimately, asset value.

Sinking and reserve funds: Use with care

With lease terms shortening, spreading costs over time via sinking or reserve funds is increasingly common. However:

• Many funds are arbitrary or unplanned

• Legal distinctions matter (e.g. whether funds are held in trust)

• Clear documentation and defined lifespans are essential for compliance

Transparency builds trust

One of the webinar's most popular themes was the importance of open-book accounting in managing complex estates. This includes:

• Clear budget packs with apportionment matrices

• Full transaction listings at reconciliation

• Tenant-facing portals (like Bellrock's upcoming Concerto Tenant Portal) for transparency and engagement

Andrew advocated for shared duties between landlords and tenants, saying transparency enhances relationships and reduces disputes.

Landmark legal cases: A word of caution

The session closed with a breakdown of the Hussein v Blacks case; an example of how legal wording around liability and certificates can determine whether tenants must pay now and dispute later. The takeaway: always align lease language with real-world service charge procedures to avoid future legal conflict.

Final word: Begin with data

Andrew concluded with a nod to Donald Rumsfeld's infamous quote on “known knowns” and “unknown unknowns”:

“The only way to manage what you don't know is to collect the data.”

Whether managing a hospital campus, a mixed-use regeneration scheme, or a nationwide estate portfolio, success hinges on visibility, planning and proactive data management.