The portfolio had a long-term management agreement (PM + FM) in place. Subsequent tendering and award of a new contract posed three challenges:
- Inconsistent data at PM level,
- PM interpreted the scope of services differently,
- A regionally highly diversified portfolio declining in size as a result of ongoing dispositions of non-strategic assets.
FM: The FM service contract with the existing manager, previously without a clear definition of the scope and without key performance indicators (“KPIs”), was completely restructured and a specific scope of the services was defined for each property.
PM: Preparation of the tender and award of the PM with sufficient lead time for the selection process and handover to the new PM.
With the FM contract remaining with the service provider already in place, willingness to cooperate was ensured and the handover of the PM to the new provider went smoothly as a result of the detailed portfolio knowledge of the Asset Management team. In addition, a detailed repairs & maintenance budget was set up, allowing for better monitoring of costs.