The document discusses property and facility management in Romania. It provides an overview of the market and outlines key considerations for outsourcing versus in-house property management. Specifically, it notes that (1) the number of real estate transactions increased between 2000-2005 as property management evolved from a department to full companies, (2) the market saw numerous new construction permits in 2010-2011 but with different occupancy levels, and (3) outsourcing property management can provide benefits like lower costs and a single point of contact while allowing companies to focus on their core business.

2. PROPERTY MANAGEMENT
Property management | Property development | Construction
project management | Building construction | Market view |
Outsourcing vs in-house | Major players | Non-performing loans |
Integrated real estate solutions | Focus on core business | Risk
assessment | Investment funds | Lower costs | Emergency
management | Property and facility management | Professional
competencies | Romanian Institute of Property Management |
SORIN PREDA BUCURESTI
MANAGING PARTNER OCTOMBRIE 2011

3. 4 Property management
6 Market view
8 Cost structure
9 Outsourcing vs in-house
10 Our approach
14 Professional competencies

4. PROPERTY MANAGEMENT
2000 – 2005
Increased number of real estate transactions
between developers and investment funds.
P&F Management evolves from department to
business unit to company
General contractors, real estate developers
(such as Global Vision) or brokers enter the
P&F Management market.

5. PROPERTY MANAGEMENT
Asset holders:
⎮ Developers
⎮ Investment funds
⎮ Banks
⎮ Retailers
⎮ Other private owners: associations,
multinationals
⎮ State owned companies

6. MARKET VIEW
2010 – 2011
Numerous new office buildings, commercial galleries
3,884 residential construction permits in July 2011
40 administrative buildings construction permits in July 2011
678 other buildings construction permits in July 2011
Different degrees of occupancy

7. MARKET VIEW
2010 - 2011
⎮ What happens to non-performing investments?
⎮ What happens to NPL?
⎮ What happens to empty buildings?

8. COST STRUCTURE
Land & Building Taxes 46.11%
Cleaning 4.89%
Security 5.21%
Firefighting Prevention 3.27%
Accounting Services 2.88%
Management Fee 5.52%
Technical Maintenance 9.67%
Utilities 17.84%

9. OUTSOURCING VS IN-HOUSE
⎮ Single point of contact
⎮ Focus on core business
⎮ Lower costs
⎮ Law compliance
⎮ Preventive maintenance
⎮ Emergency maintenance

10. OUR APPROACH
⎮ Integrated real estate solutions
⎮ Full-service property management
⎮ Independent & market-oriented
⎮ Defining professional competencies
⎮ Developing professional education

11. INTEGRATED REAL ESTATE SOLUTIONS

12. FULL-SERVICE PROPERTY MANAGEMENT

13. INDEPENDENT &
MARKET ORIENTED
⎮ Independent
⎮ Unbiased solutions (owner – tenant - lender)
⎮ Local knowledge
⎮ Local solutions
⎮ Custom-made P&F M business model

14. DEFINING PROFESSIONAL
COMPETENCIES
1. Research and analysis
2. Strategy and planning
3. Financial and accounting
4. Property management
5. Facility management
6. Sales and leasing

15. DEFINING PROFESSIONAL
COMPETENCIES
7. Marketing and communications
8. Procurement and supply-chain
9. Customer service
10. Human resources
11. Legal and contract management

16. ROMANIAN INSTITUTE OF PROPERTY MANAGEMENT