SANAD Real Estate Overview

Wednesday,25Jan2017
Agenda
# Item Contents

1 Real Estate Management Overview Define Real Estate Management

2 Portfolio Management Overview Explain the SAP solution for Portfolio Management
Lease (Contract) Administration
3 Define SAP Lease Administration
Overview

4 Real Estate Standard Reports SAP Real Estate Management Reports

Real Estate Management Overview

Define Real Estate Management

Real Estate Management: Definition
Real Estate Management is the process by which
SAM manages its Real Estate portfolio, leases and
sales process , both lease-in and lease-out.

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Difficult Questions to Answer Today
Some of the questions that are a challenge to answer in the
current scenario are listed below:
How much does SAM own or lease?
Who are the largest SAM tenants ?
How many contracts does SAM have across various entities within the
organization?
Are there opportunities to realize cost savings by negotiating contracts
using a holistic approach?
Does SAM have the right Standard Operating Procedures (SOPs) in
place?

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Challenges within Real Estate
Currently, there is no integrated process that oversees the management
of Real Estate requirements. As a result, reporting of Real Estate assets is
limited with partial visibility of Real Estate holdings. The challenges of the
Real Estate Management process are:
Lack of process automation: Processes are manual, complex and time consuming.
There is no integrated process that oversees the management of Real Estate
requirements
Different operating and execution strategies: There is lack of consistency in
processing methods for contracts.
Lack of sharing of data across SAM offices: There is no automated sharing of data
across SAM offices and no system to maintain potential/pipeline information. Also, there
is no timely end-to-end view of all Real Estate assets against requirements
Lack of integration with other departments: There is lack of integration with Finance
and Procurement. As a result, Facilities Managers may work in silos and at times,
perform redundant tasks. Additionally, there is no timely information regarding payments
in arrears or any automated tool for late payment notifications.

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SAP Solution for Real Estate Management
The SAP solution for Real Estate Management is built upon two core
components of the Flexible Real Estate (RE-FX) module.

Portfolio Management Lease (Contract) Administration

CoreFunctions: CoreFunctions:
Managetheportfolioofrealestate Contractandleasemanagementforthe
infrastructurethatAlSAMutilizesacross portfolioofrealestateunitsusedbyAl
theorganization SAM
Integratedmeansofmanagingalltypes Managethebusinessprocessesrelated
ofrealestatepropertiesandsupportall toleasingrealestatespaceoverdefined
phasesofthelifecycleofrealestate periods
assetmanagement.

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Key Improvements After SAP Implementation
Improvements realized after SAP implementation are described below:

Master Data Transparent Standard Leasing

All data related to Real Estate will be recorded and maintained in one system for
both operational and financial purposes

Business Partners will be used to track all parties who have a business interest in
one or more Real Estate properties

Master Data will help us address questions such as:

How do I get full insight into SAM property portfolio?

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Key Improvements After SAP Implementation
Improvements realized after SAP implementation are described below:

Master Data Transparent Standard Leasing

There will be better reporting capabilities regarding Real Estate assets and leases
for the entire organization

All responsible roles will have more visibility about upcoming lease contract
extensions, lease payments and invoicing and therefore will be able to plan better

Data transparency and integration will help us address questions such as:
When will the lease contracts for Tenants end?
Who do we contact for extending lease on select properties?

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Key Improvements After SAP Implementation
Improvements realized after SAP implementation are described below:

Master Data Transparent Standard Leasing

The maintenance of leases will now occur in SAP as opposed to being tracked
manually offline

A reduction in workload and manual effort for all roles is expected due to new
system functionality and improvements

There will be a higher level of automation in processing leases, resulting in reduced

time to follow up on individual items

Lease Administration standardization will help us address questions such as:

What is the process by which I establish a new lease?
How can I analyze operating expenses across all leases within my real estate portfolio?

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Portfolio Management Overview

Explain the SAP solution for Portfolio Management

Portfolio Management Process: High-Level Process

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Architectural View

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Architectural View
We Record the Architecture Object Data Like ( Arch ID - Name Address Floor Building Type Main Usage Type
Measurements Etc.

Architecture View
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Usage View

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Architectural View
We Record the Usage Object Data Like ( Conditions Posting Parameters Organization Assignment
Etc.

Usage View
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Complex View

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Master Data Objects for Real Estate

TheMasterDataobjectsforRealEstateinclude:

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Master Data Objects: Architectural Object

SAM solution has defined the following Architectural Objects:

City
Project
Land
Building
Part of the Building
Floor
Unit
Architectural Objects are displayed in the Architectural View.

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Master Data Objects: Usage Object

The Master Data that can be processed in the Usage Object are:

Business Entity
Land/Property
Building
Rental Object

Usage Objects are displayed in the Usage View.

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Master Data Objects: Business Partner

It refers to a person or an organization that has a business interest related to SAM Real
Estate property.

A Business Partner can be categorized as internal (such as a staff member) or external

(such as a commercial landlord, tenants and so on).

Business Partners related to Real Estate Portfolio Management & Leasing processes
are:
Facilities Manager
Facilities Planner
Tenant

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Portfolio Management Process: High-Level Process

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Lease (Contract) Administration Overview

Define SAP Lease Administration

Lease (Contract) Administration: Definition

Lease (Contract) Administration is used for the management of leases and it involves creating,
managing, renewing and terminating real estate leases.

It is the process of creating and maintaining leases from initial setup through billing and lease
management.

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Lease Types
A lease represents the legal agreement between a tenant and landlord for the
rental of a specified Unit or Space. In SAP , a lease is classified into two lease
types: Lease-in and Lease-out.

Lease Types

Lease - Out
SAM entity is the Landlord
(Lessee) on the contract

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External Lease-Out: High-Level Process Steps

Create
Architectural Attach Supporting
Check Business Approve
Objects Project, Documents, if
Partner Architectural Object
Building, Land, needed
Floor, Unit

Approve and
Create Usage
Create Usage Create Usage Release Usage
Object-Business
Object -Rental Object -Rental Object, Rental
Entity, Building
Units Spaces Units, Rental
and Land
Space

Lease Contract
Lease Processor pp
approver
Accountant Accountant
Periodic
Posting ,
Create Lease - Approve Lease Invoice : Create
Simulation,
out Contract - out Contract & Reverse
Execution &
Reversal

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Key Elements of Real Estate Lease

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Key Elements of Real Estate Lease

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Key Elements of Real Estate Lease

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Key Elements of Real Estate Lease

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Key Elements of Real Estate Lease

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Key Elements of Real Estate Lease

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External Lease- Out Process

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Real Estate Standard Reports
SAP Real Estate Management Reports
The standard SAP reports used across the Real Estate Management
process are:
Rent Service
Master Contracts Measure- Conditions Partners Controlling
Adjustment Charge Accounting
Data ments Settlement

RO Adjustment Objects by Curr. Settlmt Act. Line Items

Overview Measurements Conditions for Periods per
Posting Log
Sites for Master Data History Business RE Objs.
Rental Objects Partner SU
Measurements Contracts Adj. Bus.Partner for Itemization Customer Act. Line Items
Term Conditions for Line Items
Buildings for History Usage Objects. for SUs Contracts
Contract Obj.
Contracts

Cost Vendor
Land Notice
Overview Line Items** Actual: Period
Overview
Accurals /
Rental Meters for
Renewal Deferrals
Objects Rental Objs. Plan: Period
ALV Overview
Occupancy Sec. Deposit Logical Database: Reports for Cash Flow
Rental
Objects
Agreements Search for objects Settlement Actual/Plan
Search for partners Comparison
Meters for
Arch. Resubmission
SUs
Objects Dates Actual
Comparison
Object Prev. Yr
Assignments
Statistical
Key
Resubmission Figures
Dates

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Real Estate Portfolio Management Reports
The standard portfolio reports used across the Real Estate Management
process are:

Architectural Objects Report

Business Entities Report

Buildings Report

Land Report

Occupancy of Rental Objects Report

Measurements Report

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Real Estate Portfolio Management Reports
Architectural Objects Report
The report provides an overview of the selected architectural objects and their object type and
function.
A sample screen of the Architectural Objects Report is given below displaying Architectural
Object, Architectural Object Type and its validity period.

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Real Estate Portfolio Management Reports
Business Entities Report
These reports provide an overview of your selected master data and display its characteristics,
such as address, validity periods or usage types.
A sample screen of the Business Entities Report is given below displaying the Name of the
Business Entity and Address.

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Real Estate Portfolio Management Reports
Buildings Report
These reports provide an overview of your selected master data and display its characteristics,
such as address, validity periods or usage types.
A sample screen of the Buildings Report is given below displaying the Building Number and
the Address.

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Real Estate Portfolio Management Reports
Land Report
These reports provide an overview of your selected master data and display its characteristics,
such as address, validity periods or usage types.
A sample screen of the Land Report is given below displaying the Name of Land and Address.

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Real Estate Portfolio Management Reports
Measurements Report
These reports show the measurements for the selected master data.
A sample screen of the Measurements Report is given below displaying the Architectural
Object ID, Architectural Object Type Name, Name of Measurement Type and Measurement
Amount.

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Lease (Contract) Administration Reports
The standard Lease (Contract) Administration Reports used across the
Real Estate Management process are:

Overview Report

Term Report

Conditions Report

Renewal Report

Cash flow Report

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Questions and Answers