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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 Construct Operate Use

Buy land Create Maintain and Organize space


Find investors architectural repair buildings and move

design and equipments management


Prepare
development plan Prepare and Manage lease and Assign employees

organize service contracts to rooms


Request building
permits
construction work Plan Manage events

Buy construction modernization and meeting room


Ensure funding services and and refurbishment reservation


material ...

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Improving Core Business of Professional Real Estate Managers

Office Center Managers


Facility
Managers
Housing
Companies

Real Estate
Investment Shopping Center
Land Developers Trusts (REITs) 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
Insurance

Banking
Energy Suppliers

Public Services
Oil & Gas

Railways Postal Services Telecommunication


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

Corporate Real Estate


Space Management Room Reservation Move Management
Management

Technical Real Estate Modernization &


Construction Maintenance & Repair Service Management
Management Refurbishment

Integration to SAP Industry


Support Processes Accounting Controlling Tools
Solutions

Clear representation of core processes


Real Estate Solution Map, Edition 2006

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), Computer-
Aided 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 Real Estate Lease Condition Third Party Legal
Percentage Rent Cost Recovery
Management Search Management Adjustment Management 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


Space Management Room Reservation Move Management
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 Modernization &


Construction Maintenance & Repair Service Management
Management Refurbishment

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

Integration to SAP Industry


Support Processes Accounting Controlling Tools
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 Project Management


Estate Management Planning
Lease Management Budgeting
Condition Adjustments Execution
Cost recovery Settlement
Percentage rent
agreements
Controlling Processes
Comprehensive Real
Estate Controlling
Technichal Real
Estate Management
Service Management
Accounting
Expediting procedure for
Modernization and overdue items
Incoming payments
Refurbishment
Maintenance and Repair
Periodical postings

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Real Estate Lifecycle

Collect and analyze data


Optimize operational efficiency
across all functions to improve
overall business performance Analyze performance
Analyze
Analyze
Revise strategies and
Control, analyze, and (re)evaluate portfolio
evaluate data and and investments
key figures

Develop and optimize


Perform operative and real estate portfolio
strategic planning of
costs and revenues Measure
Measure Manage
Manage Project
Management
Service Charge
Settlement
Master Data
Management
Technical Facility
Management
Contract Management
Operate
Operate
Correspondence
Business Partner
Management
Condition Adjustment
Rental Accounting

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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


Scale1:75 Living
room

Dependent conditions Bedroom Bedroom

Condition purpose (actual, vacancy, market rent)


2 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
Contract cleaning(vendor)
(vendor)
Building 1

Contract -- elevator
Contract elevator maintenance
maintenance(vendor)
(vendor)
Building 1
Building 1

Rental object 1

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

Rental object 2

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

Rental object 3
Contracts
Objects Internal lease(cost
Internallease (costcenter)
center)

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Contract Management

Lease
z Term
Scale1:75 Living
room

z Conditions
Bedroom Bedroom
2 1

z Notice/renewal
z Key dates and diary
Real estate object functions
Correspondence
z Distribution
Partners z Adjustment rules
z Service charges
ACTIVATE
Cost center/ z Document management
order/project
Signature Date
Processes
z Debit position
z Payment
z Open item management
z Dunning
z 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 DIFFERENTIATION PRODUCTIVITY FLEXIBILITY TO
BUSINESS FOR TOP LINE AND EFFICIENCY ACT TODAY
INSIGHT GROWTH FOR BOTTOM
LINE GROWTH
Increased Leasing vacant Automation of Management
transparency in space becomes contract processes
your real estate simpler and management become more
portfolio helps faster. saves time and efficient thanks to
you optimize Risk of lost rent money. ability to visually
your investment revenue is User satisfaction display complex
decisions. reduced. increases while real estate data.
Key figures and administrative
benchmarking costs in service
increase management are
efficiency in reduced.
assessing
performance.

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Optimized Decision-Making

STRATEGIC
Contract Management and Land Use Management, BUSINESS INSIGHT

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.
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

STRATEGIC
By determining key performance indicators you BUSINESS INSIGHT

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.
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

STRATEGIC
Key indicators provide you with input for BUSINESS INSIGHT

benchmarking and performance management.

Your Advantages Our Solution


Key figures for your enterprise can be Statistical key figures can be
determined quickly and easily. determined based on data from
Improves your ability to compare your Controlling for real estate and of
your real estate portfolio.
This data can be tied into an
own real estate portfolio with data on the
real estate market.
external benchmark system for
comparisons with market data.

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Higher Flexibility For Controlling Reports

STRATEGIC
The new Controlling reports were created using SAP Query. 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
DIFFERENTIATION
FOR TOP LINE
Active partner management increases the GROWTH

security of rent revenues.

Offered RE Search Credit Real Estate Contract


Object Request Check Search Offer

SAP Netweaver

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

Credit
Marketplace Protection
Agency

Your Advantages Our Solution


Improved security for rent Efficient partner management with links to
revenues. Accounts Receivable and contract
management.
Data can be exchanged with credit
protection agencies.
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Automatic Contract Management
PRODUCTIVITY
AND EFFICIENCY
Using comprehensive contract management, you FOR BOTTOM LINE
GROWTH
can map complex contracts and handle follow-on
processes efficiently.

Specify Execute Process Post Analyze


Clear
contract periodic open incoming tenant
items
conditions posting items payments account

Your Advantages Out Solution


Central mapping of relevant contract Full reflection of all real estate
data, such as term of contract, contracts in the system, with
conditions, posting terms, and integrated Account Payable and
option rates. Accounts Receivable.
Secure, simple, automated posting. Management of tenant accounts,
Support for country-specific including incoming payments,
accounting standards. installment agreements, and
Simple-to-execute individual clearing.
postings. Management of sales-based rent and
security deposits.
Integrated Controlling.
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Active Service Management
PRODUCTIVITY
AND EFFICIENCY
Automatic service management assists you in FOR BOTTOM LINE
GROWTH
optimizing processes, reducing costs and increasing
user satisfaction.
Tenant/User Real estate manager Service provider

Create Request Report & Receive Receive Service


Create Accept Settle
Service Service Confirm Credit Charge
Order Order Order
Agreement Activities Memo Settlement

Your Advantages Our Solution


Standardizing and automating Purchasing management, including
repetitive processes (from framework agreements with suppliers and
requesting service to settlement) service providers.
increases speed and efficiency in Standardized processes using call
handling services.
You can better monitor costs and
centers for accepting service and repair
requests from users or tenants.
quality of services provided. Option for fully electronic (paperless)
Satisfaction of both users and handling of orders, from vendor credit
tenants increases. memos to apportioning costs to users.
Optimizing the physical facilities Mobile asset management
of your real estate becomes Budget planning, costs controlling, order
easier. monitoring

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Visual Display of Complex Data

FLEXIBILITY TO
Integration with CAD/GIS systems increases the ACT TODAY

efficiency of real estate management by making it


possible to visually display complex data.
Architectural or
Cadastral Data Contract Structure
Your Advantages
Visual display of complex

Con
A B tra ct 1 data for controlling
Con processes, reporting and

trac
analyses
C D

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
DIFFERENTIATION
FOR TOP LINE
Vacancy reports and the Real Estate Search GROWTH

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.
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
DIFFERENTIATION
FOR TOP LINE
Your Advantages GROWTH

Faster response to space requests


Save time & resources in contract management
Complete portfolio transparency

User Corporate Real Estate Manager Owner


Space
Framework Space Space Contract Expense Rent Cost
Assign-
Agreement Request Search Offer Lease Payment Allocation
ment

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

DIFFERENTIATION
FOR TOP LINE
Your Advantages Our Solution
Complete overview about Full process support
GROWTH

vacancy periods Automatic transfer of contract


Faster re-rental offers to contract management
Process automation

Vacant space

Search Contract offer Lease-out contract

Request

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One-Time Postings: Interface
PRODUCTIVITY

Easy-to-use interface
AND EFFICIENCY
FOR BOTTOM LINE

Complexity of postings not visible to end user


GROWTH

Templates in Customizing
Great amount of flexibility

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Input Tax Treatment for Controlling Objects
PRODUCTIVITY
AND EFFICIENCY
Input tax distribution for costs related to real estate, where the FOR BOTTOM LINE
GROWTH
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.

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
PRODUCTIVITY
AND EFFICIENCY
Accruals and Deferrals in Flexible Real FOR BOTTOM LINE
GROWTH
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

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Easier Integration to Industry Solution for Public Sector
PRODUCTIVITY
AND EFFICIENCY
This integration helps you benefit from unified open FOR BOTTOM LINE
GROWTH
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

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Simplified Management through Vizualizuation

FLEXIBILITY TO
Integration with CAD/GIS systems increases the ACT TODAY

efficiency of real estate management by making it


possible to visually display complex data.
Architectural or
Cadastral Data Contract Structure
Your Advantages
Visual display of complex

Con
A B tract 1 data for controlling
Con processes, reporting and

trac
analyses
C D

t2
Contract 3 Our Solution
Management of
architectural and
cadastral data
Contract and area
management
Bidirectional interfaces
with open standard
(Business Application
Programming Interfaces)

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


Easier and Faster Adaptation of Solution via Standard Tools

FLEXIBILITY TO
Your advantages ACT TODAY

Easy and fast adaptation and enhancements to


customer-specific needs without modification

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

FLEXIBILITY TO
In relation to the management contract, there are new methods ACT TODAY

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.

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Correspondence

FLEXIBILITY TO
Starting with this Release, Adobe is the standard tool for ACT TODAY
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 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

Income tax laws in some countries require that the taxpayer retains
ACT TODAY

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 System 2: Project and Test System

Classic RE
Live System
Project Copy of Live System
Start (e.g. 4.6C)
Upgrade of
Project System
Classic RE mySAP ERP 2005
Migration
Programs,
RE-FX Decisions
mySAP ERP
Upgrade of 2005
Upgrade Live System
(Downtime) Classic RE /
on mySAP Import of
Migration ERP 2005
(Downtime) Migration
Decisions,
Live System Start Migration
Project RE-FX on
End mySAP ERP 2005

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 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.)

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
Having a complete end-to-
Consolidation of 2 parts of business end solution is a significant
funds and corporate real estate
Outsourced property management
gain, which consequently
leads to reduced costs,
Allocation of occupancy expenses and advance data integrity and
management of external tenants
greater profits.
Implementation Highlights
Expansion of software to manage Mr. B. Nicholls, Systems
consolidation of property expenses, Executive, Colonial First State
revenues and incomes of Australian Property - Australia
funds, the Commonwealth Bank, and
property and fund management of its
New Zealand business
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 Wells Fargo will continue

Streamline and automate management of


to expand aggressively and
SAP Real Estate
extensive real estate portfolio Management is critical to
Improve visibility into building and space helping us manage that
utilization at building level expansion.
Enhance effectiveness of lease
Catherine Parkhurst, Business
administration and occupancy tracking
Increase charge-back capabilities for
Systems Consultant, Wells Fargo
Corporate Properties Group - USA
business units to bare cost of building
expenses

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
SAP AG 2006, Introduction toSAP Real Estate Management / Christian Mnich / 55
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

SAP AG 2006, Introduction toSAP Real Estate Management / Christian Mnich / 58


Real Estate Market Challenges & Trends

Solution Overview

Customer Cases & References

Outlook & Further Information


Important SAP Notes

443311 Release Strategy


517673 Functions and Features
771098 Country Availability
690900 User Specific Enhancements
828160 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
http://service.sap.com/re availability
specific countries please check
and read SAP Note 771098.
SAP AG 2006, Introduction toSAP Real Estate Management / Christian Mnich / 62
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.

SAP AG 2006, Introduction toSAP Real Estate Management / Christian Mnich / 63


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

SAP AG 2006, Introduction toSAP Real Estate Management / Christian Mnich / 64


Languages and Releases

Please also read note: 771098

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


SAP AG 2006, Introduction toSAP Real Estate Management / Christian Mnich / 65
mySAP ERP 2005 Is the Go-To Release
Provides a long-term foundation for excellence and innovation

300+ functional enhancements Enterpr


Enterprise services enabled

Dramatic user experience Delivers 28 configurable


improvements industry solutions

Continuous Innovation

SAP AG 2006, Introduction toSAP Real Estate Management / Christian Mnich / 66


Introducing Enhancement Packages
More innovation, more quickly, more accessible to customers

2006 2007 2008 2009 2010

Areas
of
innovation
Enterprise Industry-specific
Services capabilities
Talent Management Financial Collaboration

Functional enhancements
Technical enhancements Optional Adoption
Enterprise services

SAP AG 2006, Introduction toSAP Real Estate Management / Christian Mnich / 67


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

SAP AG 2006, Introduction toSAP Real Estate Management / Christian Mnich / 68


New Release Strategy
Stabilizing the core while delivering continuous innovation

2006 2007 2008 2009 2010


10
0

Enhancement Packages Next


Major
ERP
mySAP ERP 2005 Release

SAP NetWeaver

mySAP ERP 2005 is the Go-To


Release for SAP R/3 Customers.

SAP AG 2006, Introduction toSAP Real Estate Management / Christian Mnich / 69


Release Strategy SAP Real Estate Management

SAP R/3 SAP R/3 SAP R/3 mySAP mySAP Enhancement


4.6c Enterprise Enterprise ERP 2004 ERP 2005 Packages fr
4.7*1.10 4.70*2.00 mySAP ERP
2005

Corporate
Use

Residen-
tial Use
Commer-
cial Use
Basics
Start of
availability

Pilots
Flexible Real Estate

Migration Migration

Classic Real Estate


End of
availability

SAP AG 2006, Introduction toSAP Real Estate Management / Christian Mnich / 70


Maintenance Strategy

Extended Extended Customer-


mySAP ERP Ramp-
Mainstream Maintenance Maint. Maintenance Specific
Up
2005 (17% + 2%) (17% + 4%) Maintenance

Extended Extended
mySAP ERP Ramp- Customer-Specific
Up Mainstream Maintenance Maint. Maintenance
Maintenance
2004 (17% + 2%) (17% + 4%)

Extended Extended
SAP R/3 Ramp-
Mainstream Maintenance Maint. Maintenance
Customer-Specific
Up Maintenance
Enterprise (17% + 2%) (17% + 4%)

Extended Extended
Customer-Specific
SAP R/3 Mainstream Maintenance Maint. Maintenance
Maintenance
(17% + 2%) (17% + 4%)
4.6C

Extended Extended
SAP R/3 Mainstr. Customer-Specific
Maint. Maintenance
3.1I 4.6B Maint. (17% + 2%) (17% + 4%)
Maintenance
Mar

Dec

Dec
Mar
Dec

Dec

Dec

Mar

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


SAP Real Estate Management Future Highlights

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

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

Corporate Real Estate


Space Management Room Reservation Move Management
Management

Technical Real Estate Modernization &


Construction Maintenance & Repair Service Management
Management Refurbishment

Integration to SAP Industry


Support Processes Accounting Controlling Tools
Solutions

SAP AG 2006, Introduction toSAP Real Estate Management / Christian Mnich / 72


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

SAP AG 2006, Introduction toSAP Real Estate Management / Christian Mnich / 73


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

SAP AG 2006, Introduction toSAP Real Estate Management / Christian Mnich / 74


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
S

SAP AG
christian.mnich@sap.com

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

SAP AG 2006, Introduction toSAP Real Estate Management / Christian Mnich / 75


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)

SAP AG 2006, Introduction toSAP Real Estate Management / Christian Mnich / 76