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

PROPERTY MANAGEMENT

MANAGING PARTNER OCTOMBRIE 2011

14 Professional competencies

10 Our approach

9 Outsourcing vs in-house

8 Cost structure

6 Market view

4 Property management

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.

PROPERTY MANAGEMENT

Asset holders: ⎮ Developers

⎮ Investment funds

⎮ Banks

⎮ Retailers

⎮ Other private owners: associations, multinationals

⎮ State owned companies

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

MARKET VIEW

2010 - 2011 ⎮ What happens to non-performing investments?

⎮ What happens to NPL? ⎮ What happens to empty buildings?

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%

OUTSOURCING VS IN-HOUSE

⎮ Single point of contact ⎮ Focus on core business ⎮ Lower costs ⎮ Law compliance ⎮ Preventive maintenance ⎮ Emergency maintenance

OUR APPROACH

⎮ Integrated real estate solutions

⎮ Full-service property management ⎮ Independent & market-oriented ⎮ Defining professional competencies ⎮ Developing professional education

INTEGRATED REAL ESTATE SOLUTIONS

FULL-SERVICE PROPERTY MANAGEMENT

INDEPENDENT & MARKET ORIENTED

⎮ Independent ⎮ Unbiased solutions (owner – tenant - lender) ⎮ Local knowledge

⎮ Local solutions

⎮ Custom-made P&F M business model

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

DEFINING PROFESSIONAL COMPETENCIES

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

ROMANIAN INSTITUTE OF PROPERTY MANAGEMENT