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Introduction to SAP Real Estate Management

Christian Mnich Solution Manager, SAP AG Rome, October 11, 2006

Real Estate Market Challenges & Trends Solution Overview Customer Cases & References Outlook & Further Information

Real Estate Business Processes

Develop
Buy land Find investors Prepare development plan Request building permits Ensure funding

Construct
Create architectural design Prepare and organize construction work Buy construction services and material

Operate
Maintain and repair buildings and equipments Manage lease and service contracts Plan modernization and refurbishment

Use
Organize space and move management Assign employees to rooms Manage events and meeting room reservation ...

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Improving Core Business of Professional Real Estate Managers

Office Center Managers Facility Managers Housing Companies

Land Developers

Real Estate Investment Trusts (REITs)

Shopping Center Managers

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Professional Real Estate Managers: Pain Points Facility Managers


Optimize offer handling & standardize service processes Reduce administrative costs & issue invoices promptly

Housing Authorities
Standardize and manage contracts safely Automate communication with tenants, service provider & banks

Real Estate Investment Trusts


Portfolio transparency & detailed performance measurement Support multiple national legal regulations

Shopping and Office Space Managers


Optimize customer relationships Increase efficiency of administrative processes
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Professional Real Estate Managers: Key Challenges & Trends

Key Challenges*
Adapt technology Improve workforce development Face business competition Optimize risk management

Market Trends
Augmented portfolio diversity through market globalization Increased market consolidation Higher dependency on capital markets Higher awareness for legal compliance

* Source: IREM Institute of Real Estate Management: Transforming Real Estate Management: Four Strategic Issues 2006

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Optimize Corporate Real Estate Management

Airports Banking

Insurance Energy Suppliers

Oil & Gas

Public Services

Railways

Postal Services Retailers

Telecommunication

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Corporate Real Estate Managers: Pain Points Airports


Manage plenty of percentage rent agreements Repair & maintain highly-technical facilities

Financial Services
Manage headquarters and local affiliates

Public Services
Create portfolio transparency & complete master data Optimize space utilization & reduce service costs

Retail Companies
Professionalize land development & transaction management Increase level of process automation

Telecommunications and Utilities Companies


Optimize lease-in of facilities for technical infrastructure

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Corporate Real Estate Managers: Key Challenges & Trends Key Challenges *)
Provide optimized real estate services Increase space utilization Raise revenues with third parties Decrease operative costs

Market Trends
Higher interest for real estate management at c-level Increased need to integrated to other corporate departments Demand for space changes more often Increased cost pressure
* Source: Feedback from SAP customers

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Pain points
Recent economic development High vacancy levels in many commercial properties Increased pressure to lower internal space costs Need to offset declining results in other business areas Market globalization Expansion of subsidiary network to new markets Manage more complex property portfolios and real estate activities Mergers and/or redistribution of property portfolios according to changes in company structure Emphasis on capital market in decision making Benchmarking of maintenance and service charges between properties Increased need to compare return on investment (ROI) of property Necessity to achieve competitive risk-return ratio

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Real Estate Market Challenges & Trends Solution Overview Customer Cases & References Outlook & Further Information

What is SAP Real Estate Management? SAP Real Estate Management ..


.. is an application that is made specifically for real estate business .. is part of standard mySAP ERP .. is made for professional real estate managers as well as for corporate real estate managers .. includes about 15 years experience of SAP with real estate software .. is available in its new version since mySAP ERP and R/3 Enterprise Extension Set 2.00 .. is already successfully used by customers in about 20 industries in more than 40 countries .. supports globalization trend and growth into new markets

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Solution Map SAP Real Estate Management


Portfolio Management Real Estate Analytics Master Data Management Partner Management Transaction Management

Commercial Real Estate Management Corporate Real Estate Management Technical Real Estate Management

Real Estate Search

Lease Management

Condition Adjustment

Percentage Rent Cost Recovery

Third Party Management

Legal Compliance

Space Management

Room Reservation

Move Management

Construction

Modernization & Refurbishment

Maintenance & Repair

Service Management

Support Processes

Accounting

Controlling

Tools

Integration to SAP Industry Solutions Real Estate Solution Map, Edition 2006

Clear representation of core processes Extensive application integration:

Accounting processes such as third-party tenant receivables, landlord payables Corporate cost accounting (Controlling) Asset accounting, project management, and technical facility management processes (mySAP Product Lifecycle Management) Integration to external systems e.g., Graphical Information System (GIS), ComputerAided Design (CAD)/Computer-Aided Facility Management (CAFM) Dynamic reporting possibilities (SAP Information System and SAP BI)

Comfortable user interface Customizing (flexibility) Easy add-on development


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Portfolio Management
Portfolio Management Real Estate Analytics Master Data Management Partner Management Transaction Management

Portfolio Management helps you define your business' real estate infrastructure and manage business partner relationships. SAP Real Estate Management can help you do the following:
Analytical tools to support you in strategic, tactical and operation decisions Standard reports on costs, revenues, vacancies, measurements, contracts, conditions, maintenance and service costs and more Defining flexible object structures according to architecture, usage and building services Recording of property characteristics, fixtures, fittings and equipments Entering master data to tailor your real estate infrastructure to accommodate primary business activities Transparent views of your contractual partners Mapping of processes concerning the acquisition and disposal of your assets

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Commercial Real Estate Management


Commercial Real Estate Management Real Estate Search Lease Management Condition Adjustment Percentage Rent Cost Recovery Third Party Management Legal Compliance

Commercial Real Estate Managers such as Shopping Center Managers, Housing Authorities and Facility Managers are looking for a solution to cover their core business based on an ERP solution. Their key challenge is to make technological adaptation work. SAP Real Estate Management provides them with:
Matching vacant properties to prospect tenants Creating contract offers Managing lease and vendor contracts Monitoring lease deadlines and renewal options Carrying out rent adjustments Managing percentage rent agreements Calculating chargeable expenses, balances, advance payments, and adjustments Tracking settlement results Handling correspondence for rental processes Handling mandates and management contracts Supporting country specific legal requirements
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Corporate Real Estate Management


Corporate Real Estate Management Space Management Room Reservation Move Management

Corporate Real Estate Managers such as Airports, Retailers and Public Services want to integrated the very important area of property management in the overall processes such as Controlling, Reporting and Financials. Their key challenge is to increase the space utilization, prevent budget violations, and user-friendly service management. SAP Real Estate Management provides them with: Comprehensive space management Managing corporate portfolios Assigning resources to spaces Managing framework agreements Reservation of objects and booking of additional services Efficient move management Improved options of cost allocation
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Technical Real Estate Management


Technical Real Estate Management Construction Modernization & Refurbishment Maintenance & Repair Service Management

Technical Real Estate Management supports all processes related to building operations, including maintenance on rental objects, service management, the administration of available spaces, and building operations. SAP Real Estate Management can help you do the following:
Conducting scheduled and unscheduled maintenance on your rental objects Displaying costs in integrated reports Assigning services to externals Monitoring modernization and maintenance tasks Handling malfunctions and problems reported via phone Preparing and procuring good and external services Managing available spaces Maintaining space and rooms as graphical representations with CAD/CAFM systems
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Support Processes
Support Processes Accounting Controlling Tools Integration to SAP Industry Solutions

Support processes help you in rental accounting and controlling activities. Additional processes additional Tools are available to create and manage correspondence and related documents with your business partners. SAP Real Estate Management can help you do the following:
Periodic postings for real estate contracts and objects Tenant account maintenance Planning of costs and revenues Settlement of costs incurred by real estate objects Correspondence and document management for all real estate processes Graphical depiction via integration to CAD/CAFM and GIS systems Additional tools to adapt and enhance the SAP Real Estate Management solution to external systems and services Integration to SAP Industry Solutions such as Public Sector Management

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SAP Real Estate Management can support you in Commercial Real Estate Management
Lease Management Condition Adjustments Cost recovery Percentage rent agreements

Project Management
Planning Budgeting Execution Settlement

Controlling Processes
Comprehensive Real Estate Controlling

Technichal Real Estate Management


Service Management Modernization and Refurbishment Maintenance and Repair

Accounting
Expediting procedure for overdue items Incoming payments Periodical postings

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Real Estate Lifecycle


Optimize operational efficiency across all functions to improve overall business performance Collect and analyze data Analyze performance Revise strategies and (re)evaluate portfolio and investments Develop and optimize real estate portfolio

Analyze Analyze

Control, analyze, and evaluate data and key figures

Perform operative and strategic planning of costs and revenues Service Charge Settlement Technical Facility Management Correspondence

Measure Measure

Manage Manage

Project Management Master Data Management

Operate Operate

Contract Management

Condition Adjustment
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Business Partner Management Rental Accounting

Master Data Management Flexible object structure


Usage view Architectural view Technical view

Dynamic rental spaces


Pooled space Rental space Rental unit

Graphical link to CAD/CAFM systems Different usage scenarios


Internal/external usage or rental Multiple usage Common usage

Grouping for easy handling and administration


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Master Data Management: RE Navigator ONE central transaction unified handling


For all real estate objects (architecture, usage, contracts) For creating, displaying, and editing For resubmission For reporting

User-specific views
Worklist User-dependent object list Favorites list

Explorer functions
Display of the hierarchical dependencies Direct call, context-sensitive direct link (forward, backward) History of previously selected objects
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Contract Management Flexibility


Use contract as vendor and customer contract Use contract for lease and non-lease real estate activities Assignment of various rental objects to one contract Generate rental objects when contract is created

Comprehensive date and deadline management


Predefined rules

Flexible conditions and calculation rules


Dependent conditions Condition purpose (actual, vacancy, market rent)

Scale1:75

Living room

Bedroom 2

Bedroom 1

Integration
Assignment of Central Business Partner to Accounting and Controlling

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Contract Management: Transparency


Lease-in (vendor) Lease-in (vendor)
Contract --cleaning (vendor) Contract cleaning (vendor) Building 1 Contract -- elevator maintenance (vendor) Contract elevator maintenance (vendor) Building 1 Building 1 Rental object 1 Sub-lease (customer) Sub-lease (customer) Rental object 2 Sub-lease (customer) Sub-lease (customer)

Contracts Objects

Rental object 3 Internal lease (cost center) Internal lease (cost center)

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Contract Management

Lease
Scale1:75 Living room Bedroom 2 Bedroom 1

Real estate object Partners Cost center/ order/project

Term Conditions Notice/renewal Key dates and diary functions Distribution Adjustment rules Service charges Document management Signature Date

Correspondence

ACTIVATE

Processes
Debit position Payment Open item management Dunning Real estate controlling

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Real Estate Processes Automated processes


Periodic Posting of contract conditions Adjustment of Conditions Service Charge Settlement Sales-Based Rent Settlement Correspondence

Rule-based
Conditions can be dependent on existing conditions Condition adjustment rules can be predefined and reused

Mass execution
Periodic postings and payments are generated and integrated in Accounting and Controlling Sales-based rent settlement and service charge settlement can be executed for many contracts simultaneously Processes can be simulated and executed step-by-step and reversed Correspondence can be generated for all objects or contracts
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Reporting in SAP Real Estate Management


Information System
For operative purposes Reporting for

Master Data, Measurements, Conditions, Contracts, Business Partners Service Charge Settlement, Sales-Based Rent and Controlling

Business Information Warehouse


For management and cross-application reporting Info cubes, roles, queries and workbooks Reporting for

Portfolio Performance, Occupancy and Vacancy Rates, Partner Performance Costs and Revenues, Rent Revenue, Cash Flow

Flexible reporting
Easy to adapt Easy access and exploration of information Support on strategic, tactical and operational decisions Reduction of costs through quicker decisions

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Integration Integration to mySAP ERP


SAP Business Information Warehouse SAP Accounting SAP Controlling SAP Business Partner SAP Plant Maintenance/Customer Service SAP Project System SAP SmartForms/Adobe SAP Document Management System/Records Management SAP Workflow

Interfaces
CAD, CAFM and GIS systems Building control systems

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How Can You Manage Your Real Estate More Efficiently Using mySAP ERP?

SAP Real Estate Management


STRATEGIC BUSINESS INSIGHT DIFFERENTIATION FOR TOP LINE GROWTH PRODUCTIVITY AND EFFICIENCY FOR BOTTOM LINE GROWTH FLEXIBILITY TO ACT TODAY

Increased transparency in your real estate portfolio helps you optimize your investment decisions. Key figures and benchmarking increase efficiency in assessing performance.

Leasing vacant space becomes simpler and faster. Risk of lost rent revenue is reduced.

Automation of contract management saves time and money. User satisfaction increases while administrative costs in service management are reduced.

Management processes become more efficient thanks to ability to visually display complex real estate data.

SAP AG 2006, Introduction toSAP Real Estate Management / Christian Mnich / 29

Optimized Decision-Making
Contract Management and Land Use Management, together with Business Information Warehouse, allow you to fully track your real estate portfolio. Your Advantages
Provides better overviews of your real estate portfolio. Data is always up-to-date, while precision and verifiability are enhanced. Decision-making processes are faster and more efficient. Your internal and external reporting become more uniform.
STRATEGIC BUSINESS INSIGHT

Our Solution
Management of all master data related to valuation, from real estate contracts, the real estate cadastre, and the land register. Comprehensive reporting tools, predefined roles, queries, and workbooks.
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Improved Performance Measurement By determining key performance indicators you can measure portfolio performance and benefit from benchmarking.
Your Advantages
Key figures for your enterprise can be determined quickly and easily. Improves your ability to compare your own real estate portfolio with data on the real estate market.
STRATEGIC BUSINESS INSIGHT

Our Solution
Statistical key figures can be determined based on data from Controlling (CO) for real estate and of your real estate portfolio. This data can be tied into an external benchmark system for comparisons with market data.

Source: DID Deutsche Immobilien Datenbank GmbH (Germany)


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Efficiency in Performance Assessment Key indicators provide you with input for benchmarking and performance management.
STRATEGIC BUSINESS INSIGHT

Your Advantages
Key figures for your enterprise can be determined quickly and easily. Improves your ability to compare your own real estate portfolio with data on the real estate market.

Our Solution
Statistical key figures can be determined based on data from Controlling for real estate and of your real estate portfolio. This data can be tied into an external benchmark system for comparisons with market data.

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Higher Flexibility For Controlling Reports


The new Controlling reports were created using SAP Query.
STRATEGIC BUSINESS INSIGHT

SAP Query offers a wide range of options for defining individual reports using various forms of reports, such as, basic lists, statistical reports and ranking lists. Using SAP Query, it is easy to adapt existing reports to meet your requirements or define completely new reports.
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More Secure Rent Revenues Active partner management increases the security of rent revenues.
Offered Object RE Search Request Credit Check Real Estate Search Contract Offer
DIFFERENTIATION FOR TOP LINE GROWTH

SAP Netweaver
SAP R/3 SAP R/3 SAP R/3

Marketplace

Credit Protection Agency

Your Advantages
Improved security for rent revenues.

Our Solution
Efficient partner management with links to Accounts Receivable and contract management. Data can be exchanged with credit protection agencies.

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Automatic Contract Management Using comprehensive contract management, you can map complex contracts and handle follow-on processes efficiently.
Specify contract conditions Execute periodic posting Process open items Post incoming payments Clear items Analyze tenant account
PRODUCTIVITY AND EFFICIENCY FOR BOTTOM LINE GROWTH

Your Advantages
Central mapping of relevant contract data, such as term of contract, conditions, posting terms, and option rates. Secure, simple, automated posting. Support for country-specific accounting standards. Simple-to-execute individual postings.

Out Solution
Full reflection of all real estate contracts in the system, with integrated Account Payable and Accounts Receivable. Management of tenant accounts, including incoming payments, installment agreements, and clearing. Management of sales-based rent and security deposits. Integrated Controlling.

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Active Service Management


Automatic service management assists you in optimizing processes, reducing costs and increasing user satisfaction.
Tenant/User Create Service Agreement Request Service Real estate manager Create Order Accept Order Service provider Report & Confirm Activities Receive Credit Memo Settle Order Receive Service Charge Settlement
PRODUCTIVITY AND EFFICIENCY FOR BOTTOM LINE GROWTH

Your Advantages
Standardizing and automating repetitive processes (from requesting service to settlement) increases speed and efficiency in handling services. You can better monitor costs and quality of services provided. Satisfaction of both users and tenants increases. Optimizing the physical facilities of your real estate becomes easier.

Our Solution
Purchasing management, including framework agreements with suppliers and service providers. Standardized processes using call centers for accepting service and repair requests from users or tenants. Option for fully electronic (paperless) handling of orders, from vendor credit memos to apportioning costs to users. Mobile asset management Budget planning, costs controlling, order monitoring

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Visual Display of Complex Data


Integration with CAD/GIS systems increases the efficiency of real estate management by making it possible to visually display complex data.
Architectural or Cadastral Data Contract Structure
FLEXIBILITY TO ACT TODAY

Your Advantages
Visual display of complex data for controlling processes, reporting and analyses

trac Con

A C

B D

t1 trac Con

t2

Contract 3

Our Solution
Management of architectural and cadastral data Contract and area management Bidirectional interfaces with open standard

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Reduced Amount of Vacant Space Vacancy reports and the Real Estate Search assist you in reducing periods of vacancies.
Your Advantages
Increased transparency for contract terms and vacancies. Earlier and faster re-rental of properties. Automatic update of real estate data when contract signed.
DIFFERENTIATION FOR TOP LINE GROWTH

Our Solution
Active vacancy management Real estate search functions, with the RE search request, offer, search and contract offer. Automatic transfer of offers to contract management. Option of integration with real estate marketplaces.

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Process Example: Optimized Space Management Your Advantages


Faster response to space requests Save time & resources in contract management Complete portfolio transparency
User
Framework Agreement
DIFFERENTIATION FOR TOP LINE GROWTH

Corporate Real Estate Manager


Space Request Space Search Contract Offer Expense Lease

Owner
Space Assignment Rent Payment Cost Allocation

Our Solution
Comprehensive Master Data Management Real Estate Search Contract Management Central Business Partner Management Cost Allocation in Controlling
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Process Example: Reduced Vacancies and Faster Lease-Out

Your Advantages
Complete overview about vacancy periods Faster re-rental Process automation

Our Solution

DIFFERENTIATION FOR TOP LINE GROWTH

Full process support Automatic transfer of contract offers to contract management

Vacant space

Search

Contract offer

Lease-out contract

Request
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One-Time Postings: Interface


Easy-to-use interface Complexity of postings not visible to end user Templates in Customizing Great amount of flexibility
PRODUCTIVITY AND EFFICIENCY FOR BOTTOM LINE GROWTH

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Input Tax Treatment for Controlling Objects


Input tax distribution for costs related to real estate, where the costs were posted to other objects such as, functional locations, CO orders, etc. Prerequisites
The object must be linked to a real estate object. Examples
Maintenance orders can be linked indirectly to a real estate object by means of a functional location. Internal orders and projects can be assigned directly to a real estate object.
PRODUCTIVITY AND EFFICIENCY FOR BOTTOM LINE GROWTH

When you execute input tax distribution for costs related to real estate on these objects, the same rules apply as for real estate objects themselves. You enter an option rate method on the assigned real estate object. The system uses this option rate method to determine the option rates.

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Accrual/Deferral
Accruals and Deferrals in Flexible Real Estate
As part of period-end closing, the system uses the Accrual Engine to post accruals and deferrals to the correct periods for expenses and revenues from real estate contracts.
(This function is now also available for Release ERP2004.)
PRODUCTIVITY AND EFFICIENCY FOR BOTTOM LINE GROWTH

The accrual/deferral functions in RE-FX can be used in these instances:


Deferral for vendor contracts with payment of rent in advance Deferral for customer contracts with payment of rent in advance Other payables (accruals) for vendor contracts with payment of rent in arrears Other receivables (accruals) for customer contracts with payment of rent in arrears

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Easier Integration to Industry Solution for Public Sector This integration helps you benefit from unified open item accounting in Public Sector using RE-specific processes, while being able to transfer these documents to General Ledger Accounting. Processes
Contract integration: At account assignment, you can distinguish between the real estate contract and the contract object by using the new sub application indicator. Integration with partner management: Business partners with the internal role MKK can now be assigned to a real estate contract. Integration of contract account: Depending on the contract type, you can assign existing contract accounts to the real estate contract, or you can create a new contract account. Additions to posting term within the posting parameters: Fund, Funds Center, Commitment Item, Functional Area, Grant, and Measure
PRODUCTIVITY AND EFFICIENCY FOR BOTTOM LINE GROWTH

SAP AG 2006, Introduction toSAP Real Estate Management / Christian Mnich / 44

Simplified Management through Vizualizuation


Integration with CAD/GIS systems increases the efficiency of real estate management by making it possible to visually display complex data.
Architectural or Cadastral Data Contract Structure
FLEXIBILITY TO ACT TODAY

Your Advantages
Visual display of complex data for controlling processes, reporting and analyses

trac Con

A C

B D

ct 1 ntra Co

Contract 3

Our Solution
Management of architectural and cadastral data Contract and area management Bidirectional interfaces with open standard (Business Application Programming Interfaces)

t2

SAP AG 2006, Introduction toSAP Real Estate Management / Christian Mnich / 45

Easier and Faster Adaptation of Solution via Standard Tools

Your advantages
Easy and fast adaptation and enhancements to customer-specific needs without modification

FLEXIBILITY TO ACT TODAY

Our Solution
Easy adaptation of user interface to role-specific needs via Business Data Toolset (BDT) Modification-free implementation of specific methods such as for calculation of conditions and other enhancements via Business Add In (BAdI) Standardization of folder structures and management of various records per folder via SAP Records Management Easy management of all types of documents related to your property via SAP Document Management System High-performing mass print for all types of application data via Adobe Integration Comfortable creation of single print documents or CO-Planning via Microsoft Office Integration
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Flexible Calculation of Contract Management Conditions In relation to the management contract, there are new methods for calculating and posting management fees: Amount per object, amount by rental status, amount per tenant changeover, share of condition group. BAdI (Business Add In) for implementing your own custom procedure (RECD_CALC_RULE and RECD_DIST_RULE). The new methods outlined above were already included in the logic of this BAdI.
FLEXIBILITY TO ACT TODAY

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Correspondence
Starting with this Release, Adobe is the standard tool for correspondence. The following forms are available as PDFbased Adobe forms.
Master Data and Contract
Master Data Summaries Notice
FLEXIBILITY TO ACT TODAY

Real Estate Search


Lease Abstract Contract Offer

Accounting
Contract Account Sheet Invoice Dunning

Service Charge Settlement Sales-Based Rent Settlement Condition Adjustment Etc.

Old Forms as SAP Smart Forms


As of SAP ECC 6.00, development is not continuing for the sample forms for SAP Smart Forms. However, customers can continue to use the sample forms and self-created forms.
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Auditing: DART and AIS Data Retention Tool (DART) for RE-FX
FLEXIBILITY TO ACT TODAY

Income tax laws in some countries require that the taxpayer retains certain financial documents related to the tax return in a sequential file format.
The Data Retention Tool (DART) assists you in meeting these legal requirements. You can use this tool to extract and display master data and flow data in sequential files. The data export also makes it possible for the data to be analyzed using external software.

The starting point for the extraction (in relation to RE) is normally the FI document. That means, the RE-specific data is extracted to a document that is suitable for "explaining" the document.

AIS (Audit Information System) for RE-FX


AIS is a tool that allows an external auditor to check data in the SAP System. In this case, this involves accounting data generated by the Flexible Real Estate Management (RE-FX) component. The auditor receives (read) access to explanatory data related to accounting.

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Automatic Migration in mySAP ERP 2005


System 1: Live
Classic RE Live System Project Start Copy of Live System (e.g. 4.6C)
Upgrade of Project System

System 2: Project and Test System

Classic RE mySAP ERP 2005 RE-FX mySAP ERP 2005


Migration Programs, Decisions

Upgrade (Downtime)

Upgrade of Live System

Migration (Downtime) Project End

Classic RE / on mySAP ERP 2005 Live System RE-FX on mySAP ERP 2005

Import of Migration Decisions, Start Migration

Time
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Automatic Migration: Constraints


Data migration from Classic RE to RE-FX is supported only after an upgrade to mySAP ERP 2005 (or higher) within the same system and the same client. After the upgrade, you can continue to work with Classic RE until the right time for the actual migration (from your business perspective). You are not allowed to create RE-FX data before the migration and until after it is completed. Process data for completed processes is not migrated (such as, old service charge settlements). Only that part of the process data is migrated that is needed for followon processes (such as information on historical rent adjustments). Data from add-ons (COA, LUM, CRE) is excluded from automatic migration. This data can be migrated using BAPIs after the automatic migration. (A solution to be applied by consultants is planned.)

SAP AG 2006, Introduction toSAP Real Estate Management / Christian Mnich / 51

Real Estate Market Challenges & Trends Solution Overview Customer Cases & References Outlook & Further Information

Customer Case: IVG Immobilien AG/Europe


Key Challenge
Implement a flexible, internationally usable software platform

Project Objectives
Replace central, homegrown legacy solution Achieve global rollout

Key Benefits
Integrated business processes Consistent data basis Accelerated processes and data flows Decentralized contract management Ability to react more flexibly to future market requirements

SAP AG 2006, Introduction toSAP Real Estate Management / Christian Mnich / 53

Customer Case: Colonial First State Property


Key Challenges
Consolidation of 2 parts of business funds and corporate real estate Outsourced property management Allocation of occupancy expenses and management of external tenants

Implementation Highlights
Expansion of software to manage consolidation of property expenses, revenues and incomes of Australian funds, the Commonwealth Bank, and property and fund management of its New Zealand business

Having a complete end-toend solution is a significant gain, which consequently leads to reduced costs, advance data integrity and greater profits.
Mr. B. Nicholls, Systems Executive, Colonial First State Property - Australia

Key Benefits
Increased improvements in business efficiency and reporting Deployment of system to external partners and clients

SAP AG 2006, Introduction toSAP Real Estate Management / Christian Mnich / 54

Customer Case: Wells Fargo Corporate Properties Group/USA

Key Challenges
Streamline and automate management of extensive real estate portfolio Improve visibility into building and space utilization at building level Enhance effectiveness of lease administration and occupancy tracking Increase charge-back capabilities for business units to bare cost of building expenses

Wells Fargo will continue to expand aggressively and SAP Real Estate Management is critical to helping us manage that expansion.
Catherine Parkhurst, Business Systems Consultant, Wells Fargo Corporate Properties Group - USA

Key Benefits
Increased awareness by business units of expenses, resulting in cost reductions Improved utilization of assets and enhanced revenue opportunities Greater visibility into corporate physical assets
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Customer Case: Toronto District School Board/Canada

Key Challenges
Create central support for external leasing of unused space Integrate leasing processes of the seven regional boards

Key Benefits
Increased revenue from external leasing of unused space Streamlined property maintenance Standardized real estate management processes Integrated real estate processes with other departments and systems Improved support for long-term goals

SAP AG 2006, Introduction toSAP Real Estate Management / Christian Mnich / 56

More References

Airports Banks Energy suppliers Harbors Insurance companies Postal services Public sector Railways Retailers

SAP AG 2006, Introduction toSAP Real Estate Management / Christian Mnich / 57

Professional Real Estate Manager References

Facility Managers

Housing companies

REITs

Real estate companies

Shopping center managers

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Real Estate Market Challenges & Trends Solution Overview Customer Cases & References Outlook & Further Information

Important SAP Notes

443311 517673 771098 690900 828160

Release Strategy Functions and Features Country Availability User Specific Enhancements Migration Tools

Notes regarding SAP Real Estate Management can be downloaded via http://service.sap.com/notes
SAP AG 2006, Introduction toSAP Real Estate Management / Christian Mnich / 60

Education Two standard trainings are available


AC 290 for Classical Real Estate based on R/3 Enterprise 4.6c (5 days) AC 295 for Flexible Real Estate based on mySAP ERP 2004 (5 days) Trainers
Nigel Adams Dirk Breitinger Annemiek van Enk (Avecres) Heike Fiedler-Phelps Melinda Guppy Alexander Kraft Dmitri Miagkov Leo Sweerts (Smart Solutions) Sabine Toman Peter Werner Et al. SAP Service Marketplace: http://service.sap.com/education
SAP AG 2006, Introduction toSAP Real Estate Management / Christian Mnich / 61

Country Availability with mySAP ERP 2005

For more information on the availability of SAP Real Estate Management for specific countries please check availability http://service.sap.com/re and read SAP Note 771098.
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Country Availability and Localization


Flexible Real Estate Management is localized on a country basis in an initiative with the responsible SAP Subsidiary. The Flexible Real Estate solution in mySAP ERP 2005 is currently released for the following countries, and available in the following languages. Further localization are planned*. Please read also SAP Note 771098. Released Austria, Belgium, Canada, Germany, Israel, Italy, The Netherlands, Switzerland, United Kingdom, USA Languages German, English, Dutch, French, Czech, Finnish, Italian, Japanese, Portuguese, Russian Current Localization Plans* Japan, Poland, Portugal, Russia, Switzerland
* The release planning for delivery of localized functionality is still to be concluded. With this planning SAP is not obliged to complete localization. SAP has the right to change these plans.
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Legal Compliance for More Countries


Austria
Condition adjustment
main rent statement for residential contracts fifteenths for commercial contracts

Summarization of tax lines

Italy
Imposta Comunale sugli Immobili (county tax) Imposta di Registro (registration tax) Imposta di Bollo (stamp tax) Summarization of tax lines

Switzerland
Correspondence based on Swiss tenancy law External heating expenses settlement Lease-in with ISR Calculation of fuel consumption Rent adjustment according to Swiss law

Portugal/Spain
Withholding tax
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Languages and Releases

Please also read note: 771098 SAP Service Marketplace: service.sap.com/re


SAP AG 2006, Introduction toSAP Real Estate Management / Christian Mnich / 65

Availability

mySAP ERP 2005 Is the Go-To Release

Provides a long-term foundation for excellence and innovation

300+ functional enhancements Dramatic user experience improvements

Enterprise services enabled Delivers 28 configurable industry solutions

Continuous Innovation
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Introducing Enhancement Packages

More innovation, more quickly, more accessible to customers

2006

2007

2008

2009

2010

Areas of innovation

Enterprise Services Talent Management

Industry-specific capabilities Financial Collaboration

Functional enhancements Technical enhancements Enterprise services


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Optional Adoption

Enhancement Packages

Delivering new capabilities along with critical updates

Enhancement Packages
Optional

Enterprise Services

Switch Framework
New/Improved Functionality

Support Packages

Legal/Tax Changes, Corrections

Mandatory

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New Release Strategy

Stabilizing the core while delivering continuous innovation

2006

2007

2008

2009

2010

Enhancement Packages

mySAP ERP 2005


SAP NetWeaver

Next Major ERP Release

mySAP ERP 2005 is the Go-To Release for SAP R/3 Customers.

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Release Strategy SAP Real Estate Management


SAP R/3
4.6c Enterprise 4.7*1.10

SAP R/3

Enterprise 4.70*2.00

SAP R/3

mySAP ERP 2004

mySAP ERP 2005

Enhancement Packages fr mySAP ERP 2005

Corporate Use Residential Use Commercial Use

Basics
Start of availability

Pilots

Flexible Real Estate


Migration Migration

Classic Real Estate


End of availability

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Maintenance Strategy
mySAP ERP 2005
Extended Maint. (17% + 2%) Extended Maintenance (17% + 4%) CustomerSpecific Maintenance

RampUp

Mainstream Maintenance

mySAP ERP 2004

RampUp

Mainstream Maintenance

Extended Maint. (17% + 2%)

Extended Maintenance (17% + 4%)

Customer-Specific Maintenance

SAP R/3 Enterprise

RampUp

Mainstream Maintenance

Extended Maint. (17% + 2%)

Extended Maintenance (17% + 4%)

Customer-Specific Maintenance

SAP R/3 4.6C SAP R/3 3.1I 4.6B

Mainstream Maintenance

Extended Maint. (17% + 2%)

Extended Maintenance (17% + 4%)

Customer-Specific Maintenance

Mainstr. Maint.

Extended Maint. (17% + 2%)

Extended Maintenance (17% + 4%)

Customer-Specific Maintenance

Mar

Dec

Dec

Dec

Dec Mar

Dec

Mar

Dec

Mar

Mar

Mar

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

This strategy is also valid for all Industry Add-Ons based on the releases above. SAP AG 2006, Introduction toSAP Real Estate Management / Christian Mnich / 71

Mar

SAP Real Estate Management Future Highlights


Portfolio Management Real Estate Analytics Master Data Management Partner Management Transaction Management

Commercial Real Estate Management Corporate Real Estate Management Technical Real Estate Management

Real Estate Search

Lease Management

Condition Adjustment

Percentage Rent Cost Recovery

Third Party Management

Legal Compliance

Space Management

Room Reservation

Move Management

Construction

Modernization & Refurbishment

Maintenance & Repair

Service Management

Support Processes

Accounting

Controlling

Tools

Integration to SAP Industry Solutions

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Outlook Commercial Real Estate


Different currency in contract conditions Rent adjustment according to cost efficiency analysis **) Correction items for input tax distribution **)

Corporate Real Estate Management


Multiple use of common space Move Management Room Reservation

Industries
Public Sector Integration*

Integration
First steps towards Enterprise Service Architecture CAD/GIS Interfaces DUET Integration of Room Reservation in MS Outlook Meeting Request
*) **) Please observe that SAP can not provide any binding statements regarding new features in SAP Real Estate Management in release mySAP ERP 2007 at this time. More precise information will be published at a later date. According to German law only

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Increased Value to Your Property Portfolio - Executive Summary

SAP Real Estate Management supports professional real estate managers as well as corporate real estate managers. With mySAP ERP SAP Real Estate Management provides important enhancements for more usability, enhanced process integration and additional scenario support. SAP Real Estate Management in mySAP ERP - Why should you upgrade now?
More efficiency and productivity Increased transparency Enhanced process integration Differentiation in competition Increased value of property portfolio

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Contacts
Christian Krmer Director Solution Management SAP Real Estate Management SAP AG c.kraemer@sap.com Franz Wilhelm Kehrein Solution Manager SAP Real Estate Management SAP AG franz.wilhelm.kehrein@sap.com

Christian Mnich Solution Manager SAP Real Estate Management SAP AG christian.mnich@sap.com

International Contacts (service.sap.com /re


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Contacts)

Further Information Public Web


www.sap.com/realestate

SAP Service Marketplace (log-on required)


service.sap.com/re

Documentation and Release Notes


http://help.sap.com
Documentation / mySAP ERP / ECC 6.00 / SAP ERP Central Component / Financials / Flexible Real Estate Management (RE-FX)

Training courses: AC 295 Flexible Real Estate


www.sap.com/education

ASUG/DSAG: Real Estate Solution Industry Group


www.asug.com / www.dsag.de

Contact
Christian Mnich, SAP AG (christian.mnich@sap.com)
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