Background
The customer was acquiring a large central London development with attached CHP energy centre with large utility-run ESCO contract for 25 years.
Problem
The investor was faced with negotiating terms for a new contract format unfamiliar to the property world. The risks, clauses, negotiation options and how to achieve value for money were primary concerns.
Process
Alpheon analysed the utility’s contractual offer, energy pricing, technical and maintenance proposals and benchmarks. Particular focus was on the break clause period and fees and capital repayment charges.
Result
Alpheon reduced the break clause period by 50% and achieved substantial improvements in other terms including energy rates and cash penalties