Fot Webinar - Managers as Career Agents for Their Employees - Portfolios
Shine webinar managing global real estate portfolios
Transcript of Shine webinar managing global real estate portfolios
![Page 1: Shine webinar managing global real estate portfolios](https://reader034.fdocuments.in/reader034/viewer/2022052508/5599e0d11a28ab44318b46e7/html5/thumbnails/1.jpg)
Sue Buckworth, Susan Samuel and Michael Conroy Harris Eversheds LLP June 2013
Managing global real estate portfolios Strategies for managing multi-jurisdictional
legal services
![Page 2: Shine webinar managing global real estate portfolios](https://reader034.fdocuments.in/reader034/viewer/2022052508/5599e0d11a28ab44318b46e7/html5/thumbnails/2.jpg)
Project Managing Global Real Estate
• The challenge of managing multiple global real estate deals across time zones
• Ideal world: a single point of contact, your advisors are aware of and implement your requirements
• The reality can be quite different: mergers/acquisitions, organic growth or centralisation of core corporate functions, with little structure in place for the appointment of external solicitors
![Page 3: Shine webinar managing global real estate portfolios](https://reader034.fdocuments.in/reader034/viewer/2022052508/5599e0d11a28ab44318b46e7/html5/thumbnails/3.jpg)
Project Managing Global Real Estate
In this webinar, we will cover:
• Understanding the portfolio – “What have we got?”
• Identifying the lawyers in each jurisdiction – “Who have we been instructing, how have we been appointing them, and how should we be appointing lawyers going forward”
• Is the portfolio fit for purpose – “Does the business need space in that location?”
• Forming and implementing your real estate strategy
![Page 4: Shine webinar managing global real estate portfolios](https://reader034.fdocuments.in/reader034/viewer/2022052508/5599e0d11a28ab44318b46e7/html5/thumbnails/4.jpg)
Polling question
Are you satisfied with the level of information held by your company in relation to its real estate?
A: YES
B: NO
![Page 5: Shine webinar managing global real estate portfolios](https://reader034.fdocuments.in/reader034/viewer/2022052508/5599e0d11a28ab44318b46e7/html5/thumbnails/5.jpg)
Understanding the Real Estate Portfolio
• Great records: copy deeds, property schedules, management files or even a property database
• Incomplete records:
– Rental roll – accounts
– Office location map and work back from there!
– Appoint external surveyors to identify what you have
• Carry out a legal review of your portfolio (more on this later on)
![Page 6: Shine webinar managing global real estate portfolios](https://reader034.fdocuments.in/reader034/viewer/2022052508/5599e0d11a28ab44318b46e7/html5/thumbnails/6.jpg)
How have we been instructing external lawyers to date?
• Organic growth can lead to the disparate / ad hoc instruction of external lawyers
• Usually local contacts are used, or lawyers are selected from Chambers guides
• What have been the parameters for the appointment - cheapest or best in class?
• More importantly, how has legal risk been managed in these processes?
![Page 7: Shine webinar managing global real estate portfolios](https://reader034.fdocuments.in/reader034/viewer/2022052508/5599e0d11a28ab44318b46e7/html5/thumbnails/7.jpg)
Choose your preferred legal model
• Find the most appropriate and effective model for your business
• How?
– Canvass opinion across the business
– Decentralised approach – allow local business heads to appoint (but how do you manage legal risk?)
– Centralised approach – lay down formal processes to appoint lawyers
– Appoint a legal project manager to do it for you
![Page 8: Shine webinar managing global real estate portfolios](https://reader034.fdocuments.in/reader034/viewer/2022052508/5599e0d11a28ab44318b46e7/html5/thumbnails/8.jpg)
Processes for instructing external lawyers
the structure
• Structure for obtaining legal advice:
– a single point of contact (a legal project manager) co-ordinates appointments
– a formal procedure is put in place for selecting and instructing external lawyers:
• a formal tender process
• standard terms of engagement
• prescribe a formal reporting
format and procedure
![Page 9: Shine webinar managing global real estate portfolios](https://reader034.fdocuments.in/reader034/viewer/2022052508/5599e0d11a28ab44318b46e7/html5/thumbnails/9.jpg)
Processes for instructing external counsel
reporting and SLAs
• Reporting formats and procedures should cover:
– your requirements for matter management
– fee reporting
– value added programmes
– budget and time agreements
– success criteria
• Service Level Agreements:
– key performance indicators
![Page 10: Shine webinar managing global real estate portfolios](https://reader034.fdocuments.in/reader034/viewer/2022052508/5599e0d11a28ab44318b46e7/html5/thumbnails/10.jpg)
What is the greatest challenge to you in managing the delivery of legal services across jurisdictions?
A: Disparate levels of service
B: Scoping the instruction
C: Understanding the market level of fee for each transaction
Polling question
![Page 11: Shine webinar managing global real estate portfolios](https://reader034.fdocuments.in/reader034/viewer/2022052508/5599e0d11a28ab44318b46e7/html5/thumbnails/11.jpg)
Streamlining service delivery:
saving you money
• Clear scope of services for each transaction
• Cost transparency and certainty: fixed or capped fees?
• Regular updates and progress against budget
• Set out:
– deal milestones/timescales (when do we need to move into the building?)
– your service delivery expectations
– what happens if advice is needed outside of scope?
![Page 12: Shine webinar managing global real estate portfolios](https://reader034.fdocuments.in/reader034/viewer/2022052508/5599e0d11a28ab44318b46e7/html5/thumbnails/12.jpg)
Streamlining service delivery:
saving you time
• Client manual - sets out:
– administrative steps which must be followed for each transaction
– external panel firm arrangements
– contact details for the legal team, secretariat, accounts, tax and insurance contacts in your business
– requirements for invoicing and payments
– standard form clauses and negotiating positions
• Standard form documents, such as leases
![Page 13: Shine webinar managing global real estate portfolios](https://reader034.fdocuments.in/reader034/viewer/2022052508/5599e0d11a28ab44318b46e7/html5/thumbnails/13.jpg)
Standardising documentation:
before you begin
How you will procure your next project?
• Not sure yet?
• In the same way as the last one?
• As set out in your recent strategic review?
![Page 14: Shine webinar managing global real estate portfolios](https://reader034.fdocuments.in/reader034/viewer/2022052508/5599e0d11a28ab44318b46e7/html5/thumbnails/14.jpg)
Standardising documentation:
allocating your resources
• No two buildings are the same – but should their contracts be?
• Do you have enough resource to project manage construction projects in-house?
• If you’re outsourcing project management, do you do it on a project by project basis?
• Will you benefit from framework agreements?
![Page 15: Shine webinar managing global real estate portfolios](https://reader034.fdocuments.in/reader034/viewer/2022052508/5599e0d11a28ab44318b46e7/html5/thumbnails/15.jpg)
Standardising documentation:
leveraging your buying power
• What’s your attitude to project risk?
• What’s coming through your project pipeline?
• Are you maximizing the impact of the global economic factors and the current market?
![Page 16: Shine webinar managing global real estate portfolios](https://reader034.fdocuments.in/reader034/viewer/2022052508/5599e0d11a28ab44318b46e7/html5/thumbnails/16.jpg)
Standardising documentation:
off the shelf or made to measure
• Will industry standard contracts work for you?
• Do you apply your own Golden Rules?
• What changes do you need to make?
![Page 17: Shine webinar managing global real estate portfolios](https://reader034.fdocuments.in/reader034/viewer/2022052508/5599e0d11a28ab44318b46e7/html5/thumbnails/17.jpg)
Polling question
How do you identify all of the legal and regulatory requirements which apply to your company’s real estate in each jurisdiction?
A: Rely on our local real estate lawyers to give us pragmatic advice
B: Rely on the local business head to investigate / research the position
C: Rely on real estate consultants to provide this advice
![Page 18: Shine webinar managing global real estate portfolios](https://reader034.fdocuments.in/reader034/viewer/2022052508/5599e0d11a28ab44318b46e7/html5/thumbnails/18.jpg)
It’s not just about the real estate....
• Corporate entity to take the real estate interest
• Business and trading licences
• Employees and employment law
• Pensions
• Trademarks / IP
• E-commerce and Logistics
• Tax
• Health & Safety/Regulatory
• Construction
![Page 19: Shine webinar managing global real estate portfolios](https://reader034.fdocuments.in/reader034/viewer/2022052508/5599e0d11a28ab44318b46e7/html5/thumbnails/19.jpg)
It’s about speaking the same language
• Translation shouldn’t be a disbursement that follows down the line
• You need to know the implications of having contracts in different languages so you can budget cost and time accordingly
• You need to be clearly guided on the myriad other procedural points that impact you (registration, notarization, legal capacity and so on)
![Page 20: Shine webinar managing global real estate portfolios](https://reader034.fdocuments.in/reader034/viewer/2022052508/5599e0d11a28ab44318b46e7/html5/thumbnails/20.jpg)
Our guide to international real estate
http://www.eversheds.com/sites/global/en/what/ services/real-estate-law/real-estate-guide.page
![Page 21: Shine webinar managing global real estate portfolios](https://reader034.fdocuments.in/reader034/viewer/2022052508/5599e0d11a28ab44318b46e7/html5/thumbnails/21.jpg)
When it goes wrong
• At best – impact of timescales for the project
• At worst – penalties and fines and damage to local business reputation
• Sometimes there is nothing you can do, for example:
– the real estate local market does not allow flexibility in leases
– local law / statute
– new laws arise during the contract term
![Page 22: Shine webinar managing global real estate portfolios](https://reader034.fdocuments.in/reader034/viewer/2022052508/5599e0d11a28ab44318b46e7/html5/thumbnails/22.jpg)
Polling Question
Is your company’s current real estate strategy about:
A: Growth
B: Rationalisation
C: Maintaining what you have got
![Page 23: Shine webinar managing global real estate portfolios](https://reader034.fdocuments.in/reader034/viewer/2022052508/5599e0d11a28ab44318b46e7/html5/thumbnails/23.jpg)
Is the portfolio fit for purpose?
• “Why do we have three offices in this city?”
– new customer requires a base near them
– hangover from business acquisition or merger
• Business drivers for change:
– premises costs
– require an agile workforce i.e. hot-desking
– teams not communicating with each other
– growth in the business
– contraction in the business
![Page 24: Shine webinar managing global real estate portfolios](https://reader034.fdocuments.in/reader034/viewer/2022052508/5599e0d11a28ab44318b46e7/html5/thumbnails/24.jpg)
Real estate due diligence
• Legal review of the portfolio:
– term
– monetary liabilities
– dilapidations
– break clauses
– liquidity of the asset
– alienation provisions
• The legal review will allow you to implement your real estate strategy
![Page 25: Shine webinar managing global real estate portfolios](https://reader034.fdocuments.in/reader034/viewer/2022052508/5599e0d11a28ab44318b46e7/html5/thumbnails/25.jpg)
Your real estate strategy
the first six months
• Short term (0 – 6 months):
– decide on an appropriate legal model
– appoint a legal project manager
– implement a process for selecting and appointing external solicitors
– implement processes for document storage and records
– diarise and implement key dates (ie lease expiry dates, dates for serving break notices)
![Page 26: Shine webinar managing global real estate portfolios](https://reader034.fdocuments.in/reader034/viewer/2022052508/5599e0d11a28ab44318b46e7/html5/thumbnails/26.jpg)
Your real estate strategy
the first year
• Medium term (6-12 months):
– draft and produce an SLA
– implement internal fee budgeting and reporting systems
– implement the SLA, fee and reporting requirements amongst external lawyers
– compile and circulate internal matter reporting on current transactions
– set up data sites / extranets with real estate documentation so that it is all to hand
–
![Page 27: Shine webinar managing global real estate portfolios](https://reader034.fdocuments.in/reader034/viewer/2022052508/5599e0d11a28ab44318b46e7/html5/thumbnails/27.jpg)
Your real estate strategy
the second year • Long Term (12-24 months):
– implement a key dates system across all of the portfolio
– agree and implement the internal processes for notification and escalation of real estate issues / risk events
– develop and circulate a legal manual to external lawyers
– agree and implement a supervision protocol that works for you
– arrange training on real estate issues/legal risk events
![Page 28: Shine webinar managing global real estate portfolios](https://reader034.fdocuments.in/reader034/viewer/2022052508/5599e0d11a28ab44318b46e7/html5/thumbnails/28.jpg)
Keep testing the strategy...
• Make real estate a rolling six monthly board agenda item
• Ask the business heads what is on the horizon for their part of the business (acquisition or contraction of the business?)
• Request regular updates from your external lawyers on the relevant law in each jurisdiction
• Require internal legal sign offs before new real estate can be acquired or legal services can be instructed, so that you can ensure processes are followed
![Page 29: Shine webinar managing global real estate portfolios](https://reader034.fdocuments.in/reader034/viewer/2022052508/5599e0d11a28ab44318b46e7/html5/thumbnails/29.jpg)
Our contact details
Sue Buckworth
Susan Samuel
Michael Conroy Harris
![Page 30: Shine webinar managing global real estate portfolios](https://reader034.fdocuments.in/reader034/viewer/2022052508/5599e0d11a28ab44318b46e7/html5/thumbnails/30.jpg)
Questions
![Page 31: Shine webinar managing global real estate portfolios](https://reader034.fdocuments.in/reader034/viewer/2022052508/5599e0d11a28ab44318b46e7/html5/thumbnails/31.jpg)
Name here, Eversheds LLP
Date here www.eversheds.com
Eversheds LLP 2013© Eversheds is a limited liability partnership. DT02497