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Introduction to SAP Real Estate Management

Christian MnichSolution Manager, SAP AG

Rome, October 11, 2006

Outlook & Further Information

Real Estate Market Challenges & Trends

Solution Overview

Customer Cases & References

© SAP AG 2006, Introduction toSAP Real Estate Management / Christian Mnich / 3

Real Estate Business Processes

Construct

Create architectural designPrepare and organize construction workBuy construction services and material…

Develop

Buy landFind investorsPrepare development planRequest building permitsEnsure funding…

Operate

Maintain and repair buildings and equipmentsManage lease and service contractsPlan modernization and refurbishment…

Use

Organize space and move managementAssign employees to roomsManage events and meeting room reservation...


Improving Core Business of Professional Real Estate Managers

Shopping Center Managers

HousingCompanies

Office Center Managers

Real Estate Investment Trusts (REITs)Land Developers

FacilityManagers


Professional Real Estate Managers: Pain Points

Facility ManagersOptimize offer handling & standardize service processesReduce administrative costs & issue invoices promptly

Housing AuthoritiesStandardize and manage contracts safelyAutomate communication with tenants, service provider & banks

Real Estate Investment TrustsPortfolio transparency & detailed performance measurementSupport multiple national legal regulations

Shopping and Office Space ManagersOptimize customer relationshipsIncrease efficiency of administrative processes


Professional Real Estate Managers: Key Challenges & Trends

Key Challenges*Adapt technologyImprove workforce developmentFace business competitionOptimize risk management

Market Trends Augmented portfolio diversity through market globalizationIncreased market consolidationHigher dependency on capital marketsHigher awareness for legal compliance

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


Optimize Corporate Real Estate Management

Oil & Gas

Telecommunication

Insurance

Postal Services

Public Services

RetailersRailways

Energy SuppliersBanking

Airports


Corporate Real Estate Managers: Pain Points

AirportsManage plenty of percentage rent agreementsRepair & maintain highly-technical facilities

Financial ServicesManage headquarters and local affiliates

Public ServicesCreate portfolio transparency & complete master dataOptimize space utilization & reduce service costs

Retail CompaniesProfessionalize land development & transaction managementIncrease level of process automation

Telecommunications and Utilities CompaniesOptimize lease-in of facilities for technical infrastructure


Corporate Real Estate Managers: Key Challenges & Trends

Key Challenges *)Provide optimized real estate servicesIncrease space utilizationRaise revenues with third partiesDecrease operative costs

Market TrendsHigher interest for real estate management at c-levelIncreased need to integrated to other corporate departmentsDemand for space changes more oftenIncreased cost pressure

* Source: Feedback from SAP customers


Pain points

Recent economic developmentHigh vacancy levels in many commercial propertiesIncreased pressure to lower internal space costsNeed to offset declining results in other business areas

Market globalizationExpansion of subsidiary network to new marketsManage more complex property portfolios and real estate activitiesMergers and/or redistribution of property portfolios according to changes in company structure

Emphasis on capital market in decision makingBenchmarking of maintenance and service charges between propertiesIncreased need to compare return on investment (ROI) of propertyNecessity to achieve competitive risk-return ratio



Solution Overview



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 it’s 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


Real Estate Solution Map, Edition 2006

Solution Map – SAP Real Estate Management

Clear representation of core processesExtensive 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), Computer-

Aided Design (CAD)/Computer-Aided Facility Management (CAFM)– Dynamic reporting possibilities (SAP Information System and SAP BI)

Comfortable user interfaceCustomizing (flexibility)Easy add-on development

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

Commercial Real Estate Management

Real Estate Search

Lease Management

Condition Adjustment Percentage Rent Cost Recovery Third Party

ManagementLegal Compliance

Corporate Real Estate Management Space Management Room Reservation Move Management

Technical Real Estate Management Construction Modernization &

Refurbishment Maintenance & Repair Service Management

Support Processes Accounting Controlling Tools Integration to SAP Industry Solutions


Portfolio Management

Portfolio Management helps you define your business' real estateinfrastructure 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 decisionsStandard reports on costs, revenues, vacancies, measurements, contracts, conditions, maintenance and service costs and moreDefining 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




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 isto make technological adaptation work.

SAP Real Estate Management provides them with:

Matching vacant properties to prospect tenantsCreating contract offersManaging lease and vendor contractsMonitoring lease deadlines and renewal optionsCarrying out rent adjustmentsManaging percentage rent agreementsCalculating chargeable expenses, balances, advance payments, and adjustmentsTracking settlement resultsHandling correspondence for rental processesHandling mandates and management contractsSupporting country specific legal requirements


Real Estate Search

Lease Management




Corporate Real Estate Management

Corporate Real Estate Managers such as Airports, Retailers and Public Services want to integrated the very important area of propertymanagement in the overall processes such as Controlling, Reporting and Financials. Their key challenge is to increase the space utilization, preventbudget violations, and user-friendly service management.

SAP Real Estate Management provides them with:

Comprehensive space managementManaging corporate portfoliosAssigning resources to spacesManaging framework agreementsReservation of objects and booking of additional servicesEfficient move managementImproved options of cost allocation



Technical Real Estate Management

Technical Real Estate Management supports all processes related to building operations, including maintenance on rental objects, servicemanagement, the administration of available spaces, and buildingoperations.


Conducting scheduled and unscheduled maintenance on your rental objectsDisplaying costs in integrated reportsAssigning services to externalsMonitoring modernization and maintenance tasksHandling malfunctions and problems reported via phonePreparing and procuring good and external servicesManaging available spacesMaintaining space and rooms as graphical representations with CAD/CAFM systems




Support Processes

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.


Periodic postings for real estate contracts and objectsTenant account maintenancePlanning 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 systemsAdditional tools to adapt and enhance the SAP Real Estate Management solution to external systems and servicesIntegration to SAP Industry Solutions such as Public Sector Management



SAP Real Estate Management can support you in…


Lease Management Condition AdjustmentsCost recoveryPercentage rentagreements

Project ManagementPlanningBudgetingExecutionSettlement

Technichal Real Estate Management

Service Management Modernization and RefurbishmentMaintenance and Repair

Controlling ProcessesComprehensive Real Estate Controlling

AccountingExpediting procedure foroverdue itemsIncoming paymentsPeriodical postings


OperateOperate

AnalyzeAnalyze

ManageManageMeasureMeasure

Analyze performance

Develop and optimize real estate portfolio

Control, analyze, and evaluate data and

key figures

Perform operative and strategic planning of costs and revenues

Master DataManagement

Correspondence

Contract Management

Rental Accounting

Service Charge Settlement

Revise strategies and (re)evaluate portfolio

and investments

Optimize operational efficiency across all functions to improve overall business performance

Collect and analyze data

Business Partner Management

Technical Facility Management

Project Management

Condition Adjustment

Real Estate Lifecycle


Flexible object structureUsage viewArchitectural viewTechnical view

Dynamic rental spacesPooled space Rental spaceRental unit

Graphical link to CAD/CAFM systems

Different usage scenariosInternal/external usage or rentalMultiple usageCommon usage

Grouping for easy handling and administration

Master Data Management


Master Data Management: RE Navigator

ONE central transaction – unified handlingFor all real estate objects (architecture, usage, contracts)For creating, displaying, and editingFor resubmissionFor reporting

User-specific viewsWorklistUser-dependent object listFavorites list

Explorer functionsDisplay of the hierarchical dependenciesDirect call, context-sensitive direct link (forward, backward)History of previously selected objects


FlexibilityUse contract as vendor and customer contractUse contract for lease and non-lease real estate activitiesAssignment of various rental objects to one contractGenerate rental objects when contract is created

Comprehensive date and deadline managementPredefined rules

Flexible conditions and calculation rulesDependent conditionsCondition purpose (actual, vacancy, market rent)

IntegrationAssignment of Central Business Partnerto Accounting and Controlling

Contract Management

Livingroom

Bedroom1

Bedroom2

Scale1:75 Livingroom

Bedroom1

Bedroom2

Scale1:75


Lease-in (vendor)Lease-in (vendor)

Contract - cleaning (vendor)Contract - cleaning (vendor)

Building 1

Contract - elevator maintenance (vendor)Contract - elevator maintenance (vendor)

Building 1

ContractsObjects

Contract Management: Transparency

Rental object 1

Rental object 2

Sub-lease (customer)Sub-lease (customer)

Building 1

Sub-lease (customer)Sub-lease (customer)

Rental object 3

Internal lease (cost center)Internal lease (cost center)


Cost center/order/projectCost center/order/project

Livingroom

Bedroom1

Bedroom2

Scale1:75 Livingroom

Bedroom1

Bedroom2

Scale1:75

Contract Management

Real estate object

PartnersPartners

Debit positionPaymentOpen item management DunningReal estate controlling

Debit positionPaymentOpen item management DunningReal estate controlling

ProcessesProcesses

ACTIVATEACTIVATE

Term ConditionsNotice/renewalKey dates and diaryfunctionsDistributionAdjustment rulesService chargesDocument management

Term ConditionsNotice/renewalKey dates and diaryfunctionsDistributionAdjustment rulesService chargesDocument management

LeaseLease

Signature Date

Correspondence


Real Estate Processes

Automated processesPeriodic Posting of contract conditionsAdjustment of Conditions Service Charge SettlementSales-Based Rent SettlementCorrespondence

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

Mass executionPeriodic postings and payments are generated and integrated in Accounting and ControllingSales-based rent settlement and service charge settlement can be executed for many contracts simultaneouslyProcesses can be simulated and executed step-by-step and reversedCorrespondence can be generated for all objects or contracts


Reporting in SAP Real Estate Management

Information SystemFor operative purposesReporting for

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

Business Information WarehouseFor management and cross-application reportingInfo cubes, roles, queries and workbooks Reporting for

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

Flexible reportingEasy to adaptEasy access and exploration of informationSupport on strategic, tactical and operational decisionsReduction of costs through quicker decisions


Integration to mySAP ERP SAP Business Information WarehouseSAP AccountingSAP ControllingSAP Business PartnerSAP Plant Maintenance/Customer ServiceSAP Project SystemSAP SmartForms/Adobe SAP Document Management System/Records ManagementSAP Workflow

InterfacesCAD, CAFM and GIS systemsBuilding control systems

Integration


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

SAP Real Estate ManagementSTRATEGIC BUSINESS INSIGHT

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

DIFFERENTIATIONFOR TOP LINE GROWTH

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

PRODUCTIVITY AND EFFICIENCY FOR BOTTOM LINE GROWTH

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

FLEXIBILITY TO ACT TODAY

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


STRATEGIC BUSINESS INSIGHT

Optimized Decision-Making

Contract Management and Land Use Management,together with Business Information Warehouse,allow you to fully track your real estate portfolio.

Your AdvantagesProvides 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.

Our SolutionManagement 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.


Improved Performance Measurement

By determining key performance indicators you can measure portfolio performance and benefit from benchmarking.

Your AdvantagesKey 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 SolutionStatistical 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)


Efficiency in Performance Assessment

Key indicators provide you with input for benchmarking and performance management.

Our SolutionStatistical 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.


Your AdvantagesKey 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.


Higher Flexibility For Controlling Reports

The new Controlling reports were created using SAP Query.

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.



More Secure Rent Revenues

Active partner management increases the security of rent revenues.

Marketplace

OfferedObject

RE SearchRequest

CreditCheck

ContractOffer

Real EstateSearch

SAP Netweaver

SAP R/3 SAP R/3

CreditProtection

Agency

SAP R/3

Your AdvantagesImproved security for rent revenues.


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


Automatic Contract Management

Using comprehensive contract management, youcan map complex contracts and handle follow-on processes efficiently.

Out SolutionFull 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.

Specify contract conditions

Execute periodicposting

Your AdvantagesCentral 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.

Processopenitems

Postincomingpayments

Clear items

Analyzetenant account



Active Service Management

Automatic service management assists you in optimizing processes, reducing costs and increasing user satisfaction.

Our SolutionPurchasing 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 managementBudget planning, costs controlling, order monitoring

Your AdvantagesStandardizing 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.

CreateServiceAgreement

RequestService Create

OrderAcceptOrder

Report &Confirm

Activities

SettleOrder

Receive ServiceCharge

Settlement

ReceiveCredit Memo


Tenant/User Real estate manager Service provider


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.


A B

DC

Contract 2

Contract 1

Contract 3

Architectural or Cadastral Data Contract Structure Your Advantages

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

Our SolutionManagement of architectural and cadastral dataContract and area managementBidirectional interfaces with open standard


Reduced Amount of Vacant Space

Vacancy reports and the Real Estate Searchassist you in reducing periods of vacancies.

Your AdvantagesIncreased transparency for contract terms and vacancies.Earlier and faster re-rental of properties.Automatic update of real estate data when contract signed.

Our SolutionActive vacancy managementReal 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.



Process Example: Optimized Space Management

Your AdvantagesFaster response to space requestsSave time & resources in contract managementComplete portfolio transparency

Our SolutionComprehensive Master Data ManagementReal Estate SearchContract ManagementCentral Business Partner ManagementCost Allocation in Controlling

FrameworkAgreement

SpaceRequest

SpaceSearch

ContractOffer

ExpenseLease

RentPayment

CostAllocation

SpaceAssign-

ment

User Corporate Real Estate Manager Owner



Your AdvantagesComplete overview about vacancy periodsFaster re-rentalProcess automation

Process Example: Reduced Vacancies and Faster Lease-Out

Our SolutionFull process supportAutomatic transfer of contract offers to contract management

Request

Vacant space

Search Contract offer Lease-out contract



One-Time Postings: Interface

Easy-to-use interfaceComplexity of postings not visible to end userTemplates in CustomizingGreat amount of flexibility



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.

PrerequisitesThe 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.

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.



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.)

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



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.

ProcessesContract 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



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.


A B

DC

Contract 2

Contract 1

Contract 3

Architectural or Cadastral Data Contract Structure Your Advantages

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

Our SolutionManagement of architectural and cadastral dataContract and area managementBidirectional interfaces with open standard (Business Application Programming Interfaces)


Easier and Faster Adaptation of Solution via Standard Tools

Your advantagesEasy and fast adaptation and enhancements tocustomer-specific needs without modification

Our SolutionEasy 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 ManagementEasy management of all types of documents related to your property via SAP Document Management SystemHigh-performing mass print for all types of application data via Adobe IntegrationComfortable creation of single print documents or CO-Planning via Microsoft Office Integration



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.



Correspondence

Starting with this Release, Adobe is the standard tool for correspondence. The following forms are available as PDF-based Adobe forms.

Master Data and Contract– Master Data Summaries– Notice

Real Estate Search– Lease Abstract– Contract Offer

Accounting– Contract Account Sheet– Invoice– Dunning

Service Charge SettlementSales-Based Rent SettlementCondition AdjustmentEtc.

Old Forms as SAP Smart FormsAs 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.



Auditing: DART and AIS

Data Retention Tool (DART) for RE-FX 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-FXAIS 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.



System 2: Project and Test System

ProjectStart

Automatic Migration in mySAP ERP 2005

Classic RELive System

System 1: Live

Upgrade of Project System

Classic RE mySAP ERP 2005Migration Programs,DecisionsRE-FX

mySAP ERP 2005

Upgrade(Downtime) Classic RE /

on mySAP ERP 2005

Upgrade of Live System

Copy of Live System (e.g. 4.6C)

ProjectEnd

Migration(Downtime)

Live System RE-FX on

mySAP ERP 2005

Import of Migration Decisions, Start Migration

Time


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 follow-on 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.)



Solution Overview



Customer Case: IVG Immobilien AG/Europe

Key ChallengeImplement a flexible, internationally usable software platform

Project ObjectivesReplace central, homegrown legacy solutionAchieve global rollout

Key BenefitsIntegrated business processesConsistent data basisAccelerated processes and data flowsDecentralized contract managementAbility to react more flexibly to future market requirements


“Having a complete end-to-end 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 ChallengesConsolidation of 2 parts of business –funds and corporate real estateOutsourced property managementAllocation of occupancy expenses and management of external tenants

Implementation HighlightsExpansion 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

Key BenefitsIncreased improvements in business efficiency and reportingDeployment of system to external partners and clients

Customer Case: Colonial First State Property


Customer Case: Wells Fargo Corporate Properties Group/USA

Key ChallengesStreamline and automate management of extensive real estate portfolioImprove visibility into building and space utilization at building levelEnhance effectiveness of lease administration and occupancy trackingIncrease charge-back capabilities for business units to bare cost of building expenses

Key BenefitsIncreased awareness by business units of expenses, resulting in cost reductionsImproved utilization of assets and enhanced revenue opportunitiesGreater visibility into corporate physical assets

“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


Customer Case: Toronto District School Board/Canada

Key ChallengesCreate central support for external leasing of unused spaceIntegrate leasing processes of the seven regional boards

Key BenefitsIncreased revenue from external leasing of unused spaceStreamlined property maintenanceStandardized real estate management processesIntegrated real estate processes with other departments and systemsImproved support for long-term goals


Airports

Banks

Energy suppliers

Harbors

Insurance companies

Postal services

Public sector

Railways

Retailers

More References


Facility Managers

Housing companies

REITs

Real estate companies

Shopping center managers

Professional Real Estate Manager References



Solution Overview



Important SAP Notes

443311 Release Strategy517673 Functions and Features771098 Country Availability690900 User Specific Enhancements828160 Migration Tools

Notes regarding SAP Real Estate Management can be downloaded via http://service.sap.com/notes


Education

Two standard trainings are availableAC 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


Country Availability with mySAP ERP 2005

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


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.


Legal Compliance for More Countries

AustriaCondition adjustment– “main rent statement” for residential contracts– “fifteenths” for commercial contracts

Summarization of tax lines

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

SwitzerlandCorrespondence based on Swiss tenancy lawExternal heating expenses settlementLease-in with ISRCalculation of fuel consumptionRent adjustment according to Swiss law

Portugal/SpainWithholding tax


Languages and Releases

SAP Service Marketplace: service.sap.com/re Availability

Please also read note: 771098


mySAP ERP 2005 Is the Go-To ReleaseProvides a long-term foundation for excellence and innovation

Enterprise services enabled

Delivers 28 configurable industry solutions

Continuous Innovation

300+ functional enhancements

Dramatic user experience improvements


2006 20102007 2008 2009

Introducing… Enhancement PackagesMore innovation, more quickly, more accessible to customers

Industry-specific capabilities

Talent Management

EnterpriseServices

Financial Collaboration

Optional Adoption

Areasof

innovation

Functional enhancementsTechnical enhancementsEnterprise services


Enhancement PackagesDelivering new capabilities along with critical updates

Legal/Tax Changes, Corrections

Enhancement Packages

Support Packages

New/Improved Functionality

Switch Framework

Enterprise Services

Mandatory

Optional


New Release StrategyStabilizing the core while delivering continuous innovation

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

2006 2007 2008 2009 2010

mySAP ERP 2005

SAP NetWeaver

Enhancement Packages NextMajorERPRelease


Release Strategy SAP Real Estate Management

SAP R/3 4.6c

SAP R/3 Enterprise4.7*1.10

SAP R/3 Enterprise4.70*2.00

mySAP ERP 2005

mySAP ERP 2004

End of availability

Pilots

Basics

Commer-cial Use

Residen-tial Use

CorporateUse

Migration Migration

Flexible Real Estate

Classic Real Estate

Start of availability

EnhancementPackages für mySAP ERP

2005


This strategy is also valid for all Industry Add-Ons based on the releases above.

2011 20122002 2003 2004 2005 2006 2007 2008 2009 2010

mySAP ERP2004

SAP R/3 Enterprise

SAP R/3 4.6C

SAP R/3 3.1I – 4.6B

mySAP ERP2005

Mainstr. Maint.

Dec

Dec

Mainstream Maintenance

ExtendedMaint.

(17% + 2%)

Dec

Dec

Ramp-Up

Mar

Dec Mar

ExtendedMaint.

(17% + 2%)

ExtendedMaintenance(17% + 4%)


Mar

2014M

ar

Mar

Ramp-Up Mainstream Maintenance



2013

Customer-SpecificMaintenance

Dec


ExtendedMaint.

(17% + 2%)



Mar

Mar

ExtendedMaint.

(17% + 2%)



ExtendedMaint.

(17% + 2%)


Customer-Specific

Maintenance

Ramp-Up

Maintenance Strategy


SAP Real Estate Management – Future Highlights



Real Estate Search

Lease Management








Outlook

Commercial Real EstateDifferent currency in contract conditionsRent adjustment according to cost efficiency analysis **)Correction items for input tax distribution **)

Corporate Real Estate ManagementMultiple use of common spaceMove ManagementRoom Reservation

IndustriesPublic Sector Integration*

IntegrationFirst steps towards Enterprise Service ArchitectureCAD/GIS InterfacesDUET – 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


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 integrationand additional scenario support.

SAP Real Estate Management in mySAP ERP - Why should you upgrade now?

More efficiency and productivityIncreased transparencyEnhanced process integrationDifferentiation in competitionIncreased value of property portfolio


Contacts

Franz Wilhelm KehreinSolution ManagerSAP Real Estate Management

SAP [email protected]

Christian MnichSolution ManagerSAP Real Estate Management


Christian KrämerDirector Solution ManagementSAP Real Estate Management


International Contacts (service.sap.com /re Contacts)


Public Webwww.sap.com/realestate

Training courses: AC 295 Flexible Real Estatewww.sap.com/education

ContactChristian Mnich, SAP AG ([email protected])

Further Information

SAP Service Marketplace (log-on required)service.sap.com/re

Documentation and Release Noteshttp://help.sap.comDocumentation / mySAP ERP / ECC 6.00 / SAP ERP Central Component / Financials / Flexible Real Estate Management (RE-FX)

ASUG/DSAG: Real Estate Solution Industry Group www.asug.com / www.dsag.de

refx

Documents

real estate software

corporate real estate

optimized real estate

sap customers sap ag

sap ag rome

ratio sap ag

new markets sap ag

management assign employees