Sap Refx

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 ...

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

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
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

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

Optimize Corporate Real Estate Management
Airports
Insurance
Banking
Energy Suppliers
Public Services
Oil & Gas
Railways Postal Services Telecommunication

Retailers
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

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

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

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 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

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
Portfolio 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

Commercial Real Estate Management
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
Corporate Real Estate 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
Technical Real Estate Management

Technical Real Estate Management supports all processes related to

building operations, including maintenance on rental objects, service
management, the administration of available spaces, and building
operations.
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

Support Processes

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.
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

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

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

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

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

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

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)

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

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
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

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

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.

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.

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)

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.

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.

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

Improved security for rent Efficient partner management with links to
revenues. Accounts Receivable and contract
management.
Data can be exchanged with credit
protection agencies.
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.
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

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

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

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.

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

Process Example: Reduced Vacancies and Faster Lease-Out
DIFFERENTIATION
FOR TOP LINE
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

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

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.

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

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

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)

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

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.

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.
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.

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
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 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

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

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
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

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

Professional Real Estate Manager References
Facility Managers
Housing companies
REITs
Real estate companies
Shopping center managers

Solution Overview

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

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
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.
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
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

Languages and Releases
Please also read note: 771098
SAP Service Marketplace: service.sap.com/re Availability

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

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

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

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.

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

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 Real Estate Management Future Highlights

Management


Solutions

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

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

Contacts
Christian Krmer
Director Solution Management
SAP AG
c.kraemer@sap.com
Franz Wilhelm Kehrein

Solution Manager
SAP AG
franz.wilhelm.kehrein@sap.com
Christian Mnich
Solution Manager
S
SAP AG
christian.mnich@sap.com
International Contacts (service.sap.com /re Contacts)

Further Information
Public Web
www.sap.com/realestate
SAP Service Marketplace (log-on required)

service.sap.com/re
Documentation and Release Notes

http://help.sap.com
Documentation / mySAP ERP / ECC 6.00 / SAP ERP Central Component /
Financials / Flexible Real Estate Management (RE-FX)
Training courses: AC 295 Flexible Real Estate
www.sap.com/education
ASUG/DSAG: Real Estate Solution Industry Group

www.asug.com / www.dsag.de
Contact
Christian Mnich, SAP AG (christian.mnich@sap.com)

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Introduction to

SAP Real Estate

Customer Cases & References

Outlook & Further Information

Develop Construct Operate Use

Buy land Create Maintain and Organize space

design and equipments management

organize service contracts to rooms

Buy construction modernization and meeting room

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

Office Center Managers

Real Estate Investment Trusts

Shopping and Office Space Managers

SAP AG 2006, Introduction toSAP Real Estate Management / Christian Mnich / 5

SAP AG 2006, Introduction toSAP Real Estate Management / Christian Mnich / 6

Railways Postal Services Telecommunication

Telecommunications and Utilities Companies

SAP AG 2006, Introduction toSAP Real Estate Management / Christian Mnich / 8

SAP AG 2006, Introduction toSAP Real Estate Management / Christian Mnich / 9

Recent economic development

Emphasis on capital market in decision making

SAP AG 2006, Introduction toSAP Real Estate Management / Christian Mnich / 10

Customer Cases & References

Outlook & Further Information

SAP Real Estate Management ..

SAP AG 2006, Introduction toSAP Real Estate Management / Christian Mnich / 12

Corporate Real Estate

Technical Real Estate Modernization &

Integration to SAP Industry

Clear representation of core processes

Extensive application integration:

Portfolio Management helps you define your business' real estate

SAP Real Estate Management can help you do the following:

Analytical tools to support you in strategic, tactical and operation decisions

SAP AG 2006, Introduction toSAP Real Estate Management / Christian Mnich / 14

Commercial Real Estate Managers such as Shopping Center Managers,

SAP Real Estate Management provides them with:

Matching vacant properties to prospect tenants

Corporate Real Estate

Corporate Real Estate Managers such as Airports, Retailers and Public

SAP Real Estate Management provides them with:

Comprehensive space management

Technical Real Estate Modernization &

Technical Real Estate Management supports all processes related to

SAP Real Estate Management can help you do the following:

Conducting scheduled and unscheduled maintenance on your rental objects

SAP AG 2006, Introduction toSAP Real Estate Management / Christian Mnich / 17

Integration to SAP Industry

Support processes help you in rental accounting and controlling activities.

SAP Real Estate Management can help you do the following:

Periodic postings for real estate contracts and objects

SAP AG 2006, Introduction toSAP Real Estate Management / Christian Mnich / 18

Commercial Real Project Management

SAP AG 2006, Introduction toSAP Real Estate Management / Christian Mnich / 19

Collect and analyze data

Develop and optimize

SAP AG 2006, Introduction toSAP Real Estate Management / Christian Mnich / 20

Flexible object structure

Dynamic rental spaces

Graphical link to CAD/CAFM systems

Grouping for easy handling and administration

SAP AG 2006, Introduction toSAP Real Estate Management / Christian Mnich / 21

ONE central transaction unified handling