Shared Assets Cost Schedule for Woolworths Group

MBM Project Lead

Ujwal Lakra

Client Name

Woolworths Limited

Sector

Timeline

November 2024 – January 2025

Project Value

$Confidential

MBM Project Team

  • Justin Noakes
  • James Forster
  • Scott Denison

Services Provided

MBM was engaged to provide specialist advisory services focused on the quantification and cost apportionment of landlord-provided services across shared areas within the premises. This included a detailed assessment of operational services supporting tenant occupancy—such as HVAC, refrigeration, and repairs and maintenance across key disciplines including electrical, mechanical, hydraulic, vertical transportation, and fire protection systems.

MBM developed a robust methodology for apportioning these service costs, tailored for inclusion in lease agreements, ensuring transparency and equity in cost recovery. The scope specifically addressed shared-use zones such as loading docks, dock facilities, and back-of-house amenities, enabling the client to manage service charges with greater accuracy and consistency.

Project Background and Scope

Endeavour Group and Woolworths were seeking to agree cost sharing provisions within established lease agreements (shared costs) as they related to FM Costs

Project Challenges

Both parties sought to establish a mutually agreed definition for key terms, specifically ‘Shared Services’ and ‘Financial Depreciation,’ to ensure clarity and consistency across lease agreements.

MBM Solutions

MBM facilitated this process by engaging collaboratively with stakeholders from both sides to understand operational requirements, financial implications, and legal considerations. Through a series of targeted discussions and technical reviews, MBM developed clear, practical definitions that reflected the intent and usage of these terms within the context of the premises. These definitions were structured to be seamlessly incorporated into all lease documentation, supporting transparency in cost allocation and reducing the potential for future disputes.