Transformation Property Strategy Development
Summary
Deecon partnered with SGN to develop a Transformation Property Strategy aligned to its future nine-region Target Operating Model (TOM), ensuring the property estate could effectively support evolving operational requirements. Working to an accelerated delivery programme, Deecon undertook detailed estate analysis, stakeholder engagement, spatial mapping and financial modelling. This enabled the identification of optimisation opportunities, validation of property requirements and assessment of buy-versus-rent options using Net Present Value (NPV) analysis. The resulting GD3-ready strategy provided a future-state property portfolio, prioritised investment roadmap and evidence-based recommendations to improve operational coverage, enhance efficiency, strengthen health and safety outcomes, and support long-term estate decision-making.
The Requirement
Deecon was engaged by SGN to define cross-functional requirements and develop a Transformation Property Strategy aligned to the organisation’s TOM. The objective was to optimise the property portfolio to improve health and safety outcomes, enhance operational performance, and deliver long-term financial efficiencies. This was driven by a shift in SGN’s operating model, requiring a transition from an existing five-region structure to a new nine-region design, which in turn necessitated a fundamental reassessment of property locations, capacity, and configuration to ensure alignment with future operational requirements. The strategy was required within a compressed timeframe to support the development and submission of SGN's GD3 business plan to Ofgem for the forthcoming five-year regulatory period, creating a critical dependency between the property strategy and the wider regulatory submission programme.
The Solution
To address this, Deecon undertook a structured diagnostic of SGN’s existing property estate, combining detailed data analysis with extensive stakeholder engagement. Collaborative workshops were held with the SGN Property Team and Transformation Function to identify operational needs, assess constraints, and define requirements for the future portfolio. Existing assets were mapped against the new regional model using spatial overlays, enabling a clear understanding of coverage gaps, inefficiencies, and opportunities for optimisation across the estate.
Following requirements definition, Deecon gathered detailed specification and cost information for both existing and proposed assets, ensuring all data was rigorously validated on a line-by-line basis with internal stakeholders and external property advisors. A comprehensive cost model was then developed, incorporating NPV analysis to compare ‘buy’ versus ‘rent’ options and assess the most financially advantageous approach. This enabled informed decisions on tenure strategies, including the appropriate use of freehold and leasehold assets depending on strategic importance and location.
To support decision-making and sequencing, an Impact/Effort assessment framework was developed to prioritise property interventions based on urgency, operational criticality, contractual risks, and cost implications. The final output was a reconfigured property portfolio aligned to the TOM, supported by detailed cost modelling and visual representations of current and future states. These recommendations were presented to senior leadership as part of the GD3 submission, providing a structured and evidence-based pathway to optimise the estate and realise long-term value.
The Results
Delivered a future-state property portfolio strategy aligned to SGN's nine-region Target Operating Model, providing a clear pathway for estate optimisation and operational alignment across the business
Enabled evidence-based property investment decisions through a comprehensive cost model incorporating NPV analysis and buy-versus-rent option appraisals
Established a robust and defensible property cost baseline through detailed validation of property specifications and expenditure assumptions, increasing confidence in future investment planning
Identified inefficiencies, operational coverage gaps and rationalisation opportunities through comprehensive analysis of the existing portfolio against future regional requirements
Prioritised estate interventions using an Impact/Effort framework, enabling SGN to focus investment on the highest-value opportunities while managing contractual and operational risks
Produced a GD3-ready Property Strategy supported by future-state portfolio recommendations, financial modelling and implementation priorities, equipping senior leadership with the evidence required to make informed long-term estate decisions