DELIVERING REAL ESTATE IN COMPLEX AND EMERGING MARKETS. Prepared for:

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1 DELIVERING REAL ESTATE IN COMPLEX AND EMERGING MARKETS Prepared for:

2 TOTAL COVERAGE CBRE s Global Country Coverage 2

3 TOTAL COVERAGE Expertise in Africa We are witnessing an increasing demand for quality real estate solutions in Africa, driven by strong growth in a number of sectors and our clients desire to capitalise on these new opportunities. Through our established extensive network of CBRE and affiliate offices across the continent, as well as selected specialist providers, we support our clients real estate, IT, telecommunications and security requirements in all these markets. Our offering and expertise in these markets supports our clients delivery of their global strategy, by providing strong risk mitigation and robust project governance. Please visit our website: CBRE is the only global real estate services provider capable of providing end-to-end integrated real estate solutions across all African geographies. 3

4 CBRE EMEA COVERAGE 2014 CBRE and Affiliates Africa and ME Country Locations. Africa: Morocco (CBRE) Nigeria (Broll) Ghana (Broll) Kenya (Broll JV) Angola (Zenki) Indian Ocean (Broll JV) Malawi (Broll JV) Rwanda (Broll JV) Namibia (Broll JV) South Africa (Broll) ME: Dubai (CBRE) Abu Dhabi (CBRE) Bahrain (CBRE) Israel (Mann Properties) CBRE Offices CBRE Affiliate Offices Complex & Emerging Markets Team Activity 4

5 CBRE AFRICA / ME EXPERIENCE

6 SECTOR SPECIFIC DELIVERY Africa Oil & Gas Algeria Libya Mauritania Mali Eritrea Burkino Faso Tanzania Ghana Nigeria Mozambique Angola South Africa 7

7 SERVICE CAPABILITIES Fully Integrated Risk Management Services

8 FULLY INTEGRATED SERVICE OFFERING End-to-End Delivery Strategic RISK MANAGEMENT Tactical Complex & Emerging Markets Strategy Consulting/PMO Business Intelligence / Due Diligence Transaction Management Project Management Services and Delivery Established Team Structure Single Point of Contact Account Management Model Market Entry Model Market and Country Assessments New Market Entry Strategy Market Entry Processes Regional Studies and Strategy Intelligence Risk Management FCPA & UK Bribery Act consultancy services PMO Country Level Research and Intelligence City Level Research and Intelligence Market Research Supplier / Landlord Due Diligence Technical Due Diligence Site Level Feasibility Analysis Country, City and Site Level Sustainability Analysis Logistical Analysis Comparative Locational Studies Demographics and Labour Analyticals Process Improvement Tools and Systems Security Assessments and Advice Self Performance or partner with best in- class local provider Project Initiation Tenant Representation Full Market Evaluation Tactical Plan Execution Site Selection / Shortlisting Landlord / Ownership Due Diligence Lease Negotiation Final Implementation Post-Project Closeout Project Management Services Design and Space Planning Services Building Regulations, Planning Permits, Space Planning and Design General Fitout Services IT Infrastructure and Fitout Security Fitout of Facility Procurement, Sourcing and Commercial Management Legal and Tax Management Transition and Move Management Business Continuity Plans and Disaster Recovery Plans Ongoing Facilities Management advisory 9

9 BEYOND REAL ESTATE Fully Integrated Services Real Estate Security WE BRING ALL THE FACETS OF THE PROJECT INTO A SEAMLESS PROGRAMME OF WORK IT & Telecommunications 10

10 RISKS & OBSTACLES: INVESTMENT VS. RISK Adding Value The earlier the project manager is involved, the better the opportunity to affect the bottom line. 11

11 INTEGRATED TOOLS: CBRE GLOBAL PLATFORM Playbook Approach Internal Process Diagrams Diagrams highlight action steps for developing project strategies and execution Roles and Responsibilities Hierarchies Those responsible for each action step are identified in sequence, along with affiliated responsibilities & organograms Deliverable Tools Project Forms (agreements, contracts, schedules, budgets, spreadsheets) associated with each action step are provided, as appropriate Standard forms are customised to each client s unique needs Reporting protocols and standards are agreed 12

12 CLIENT VALUE / RISK MANAGEMENT

13 SERVICE DELIVERY & VALUE PROPOSITION Our Clients realise multiple benefits including: 1 SPEED TO MARKET Working with proven processes through an established PMO, all due diligence, procurement and market intelligence is undertaken as early as possible so that projects complete well ahead of programme. 2 REDUCED COSTS We help clients get it right first time by designing robust strategies, preparing accountable project plans and using elite on-the-ground cross functional resources to reduce the total cost of ownership. 3 REDUCED RISK We identify the main risks to security, brand, personnel and commerce, take actions to prevent or mitigate them, manage the risk and report regularly on progress against set objectives. 4 ETHICAL RISK PROTECTION We have the highest ethical standards and our understanding of local customs, market intelligence and experience enables us to steer away from local failure, naiveté or sharp practice (FCPA / UK Bribery Act). 14

14 SERVICE DELIVERY & VALUE PROPOSITION Our Clients realise multiple benefits including: 5 CROSS FUNCTIONAL SOLUTIONS We bring all facets of the project, including security, IT & telecoms, procurement & commercial management, into a single integrated programme of work under one multi-functional resource. 6 END-TO-END SOLUTIONS We are the only real estate provider amongst our peers capable of providing all services (due diligence, brokerage, consultancy, project management, etc) across all global markets. 7 SINGLE POINT OF CONTACT We report through the existing Account Management structure led by a dedicated Alliance Director with responsibility for delivering operational excellence and reporting measurable results. 8 GLOBAL REPORTING By managing and running multi-faceted cross-border programmes of work we provide consistent reporting across all geographies aligned with our clients and CBRE s global standards. 15

15 TEAM AND DELIVERY STRUCTURE Governance CLIENT CBRE Alliance Director Risk Management/ Compliance Complex & Emerging Markets CBRE Service Line Leads Transaction Management Project Management Local Market Experts Africa Middle East Asia Best-in-Class Delivery CBRE Local Office Source8 Third Party Provider 16

16 RISK MANAGEMENT AND OPERATIONAL MODEL Fully Integrated Risk Management Services Request Project Allocation Contract/ Initiate Engagement Project Manage Review Client Project Request Approves Model Signs PSIF Client Feedback CBRE Alliance Director CEM Service Line Leads Assesses request and discusses with CEMD Engages with all delivery options Completes Delivery Selection Form. Designs model and submits solution to Client Reviews, Approves, Submits PSIF Drafts PSIF Project Set Up Reporting Delivery Management Management Review Implements Feedback/ closeout Best-inclass Delivery Options Provide Capability Statements Agreed Delivery Solution Provides info to draft PSIF Project Set up Project Delivery 17

17 CASE STUDIES

18 STATOIL OFFICES Angola, Tanzania, Algeria and Mozambique BRIEF CBRE was appointed by Statoil to provide project management and consultancy services relating to the design and fit-out of new premises in Angola, Tanzania, Algeria and Mozambique. CHALLENGE The team had to work to a very tight timeframe to ensure completion and relocation in to the new facilities aligned with the date to vacate existing premises. The lack of transparency and local security risks made the task extremely challenging. NATURE OF INSTRUCTION: CLIENT: SERVICE LINE(S) INVOLVED: COUNTRIES INVOLVED: Office relocation (Fitout delivery - 15,000 sq feet) Statoil Complex and Emerging Markets Desk Angola Tanzania Algeria Mozambique United Kingdom SOLUTION Through a single local CEMD resource, CBRE provided valuable local market knowledge during the contractor selection process and ensured that all prequalification and tender exercises where carried out in accordance with Statoil s in-house procurement process. This enabled Statoil to make informed decisions on the designer s and contractors proposals before making appointments, which included developing and implementing a full HSSE compliance process. Through constant liaison with Client, Designer and contractor, the local CEMD Resource scrutinized every detail and put forward possibilities to speed up the construction process without compromising the quality of the project. ADDED VALUE Significant reductions in the order of 30% have been achieved through negotiating reduced scope of works, however other non quantitative value add was provided in the form of local governance and due diligence in what is a very complex environment for most corporate occupiers. 19

19 MULTI MARKET OFFICE ROLL OUT Chad, Niger, Burkina Faso, Gabon NATURE OF INSTRUCTION: New market entries CLIENT: SIZE: Global Telecoms and IT provider Circa 400 sqm SERVICE LINES INVOLVED: Complex & Emerging Markets Desk COUNTRIES INVOLVED: Chad, Niger, Burkina Faso, Gabon BRIEF As part of their Africa Plan, a global telecoms provider needed to open new offices in Chad, Niger, Burkina Faso and Gabon. CHALLENGE Availability of market options able to meet the client needs was very limited. Client s requirements changed during the life of the project. Local agents and legal counsels were very slow and difficult to work with Client approval processes and payment times led to a lengthy process OHADA law needed to be respected to ensure correct tenant rights SOLUTION All building documents and draft leases for the short-listed options requested before approval phase to ensure no delays on the overall process Financial analysis on selected options undertaken to speed up client s budget approval Management of lease process for the selected option started as soon as the security checks were done and budget approved Lease draft undertaken on behalf of the landlord s agent to ensure progress Lease terms negotiated to be favourable for tenant renewal rights ADDED VALUE Suitable options were identified despite the immaturity of the markets Deal held together over many months ensuring agent and landlord were managed during long payment processes Lease dates and signature negotiated to assist with long payment lead times Due diligence on both notary and landlord undertaken for client 20

20 COMPLEX ENVIRONMENT DELIVERY MODEL Gates Foundation, Abuja BRIEF The Foundation needed to find a new site to house both office and residential needs Governance of the Foundation states that only space zoned for commercial use can be occupied for office space Security was a fundamental concern so a single site was preferred with technology connectivity, water and power requirements also of high importance CHALLENGE A single enclosed site with two properties made a villa the most viable option Villa space is mostly zoned residential yet used as offices, with change of use not welcomed by most landlords, but imperative for the Foundation Information available from the market before a country visit is limited as real estate agency market is very immature with multiple agents presenting the same property SOLUTION On ground three days before Foundation to view all options (villas, split sites, traditional office) and to narrow down to short list Report of options prepared in-country for Foundation s arrival classifying options and looking at zoning, security, IT, water and power requirements Management of viewings, meetings and negotiations undertaken to ensure 3 rd party agent paternity of introductions respected throughout ADDED VALUE Long list viewings, short listing, reporting, short list viewings, negotiation of terms on preferred options and payment of deposit on selected first choice all within 10 days Change of use in zoning explained and support from key landlords obtained Now undertaking fit-out of site including Technology and Security requirements INSTRUCTION CLIENT SIZE SERVICE LINES LOCATION New Lease Acquisition & Fit Out Bill & Melinda Gates Foundation 1,250 sqm Transaction & Project Management, Technology & Risk Management Nigeria, Abuja 21

21 TURNKEY REAL ESTATE SERVICES Europe, Central Asia and Africa BRIEF Teleperformance won a tender with the UK Home Office to set up new visa application centres across Europe and Africa. As a consequence, they needed to acquire and fit out nearly 100 new facilities across 70 locations in Europe, Africa, Middle East, Russia and Central Asia. Teleperformance was under tight timelines to open all of these centres by 01 April 2014 CHALLENGE Timeline all the sites had to be identified and delivered in 4.5 months Ensuring all the visa centres were up to the UK Government s standards Ensure the necessary equipment was on site when required Client coordinating preferred suppliers NATURE OF INSTRUCTION: CLIENT: SIZE: SERVICE LINE(S) INVOLVED: COUNTRIES INVOLVED: PMO Market Intelligence Transaction Management Project Management Security Audits Teleperformance Limited Over 100 site locations across Europe and Africa Complex and Emerging Markets Desk 70 country locations across Europe and Africa SOLUTION Embedded a central PMO team to ensure timely and consistent delivery and managing reporting, finance, procurement, benchmarking across all the sites Offered a hub and spoke model to deliver projects across Africa Delivered projects under a Managed Principle model Provided security audits through the Source8 Risk Management function Engaged Source8 technology function to deliver Internet connectivity to all sites ADDED VALUE CBRE and Source8 embedded full time resources into the client project team and leveraged all their functional lines to ensure seamless delivery from start to finish of the programme as well as of the individual projects 22

22 TURNKEY REAL ESTATE SERVICES Multiple Geographies BRIEF The client is a major supplier of equipment to the Mining and Drilling industry. They have a requirement to set up manufacturing, assembly and warehouse units across many emerging markets CBRE s Complex and Emerging Markets was engaged to provide market intelligence on the industrial real estate and legal requirements, provide site options, assist with transaction and provide project management services CHALLENGE Lack of Information and Suppliers Legal Complexity Language Bureaucracy Logistical challenge NATURE OF INSTRUCTION: Market Intelligence Transaction Management Project Management CLIENT: Multinational Company Mining and Drilling Support Services SIZE: SERVICE LINE(S) INVOLVED: COUNTRIES INVOLVED: 5 acres Complex and Emerging Markets Desk Mali Eritrea Ghana Burkina Faso East Kalimantan Chile SOLUTION The different projects were coordinated through a PMO based in the UK. The PMO managed the communication and reporting. Resources were deployed in country to provide the client with due diligence, market overview and long lists of suitable options The in country resources managed the transaction process Project Managers were engaged early to coordinate the pre-sale surveys and run the RFP process for the design and construction of the facilities. ADDED VALUE Working through the CBRE Account Manager, Source8 s dedicated PMO coordinated all the Transaction and Project Management activities, applying standard processes, dealing with strategic procurement, streamlining reporting and communication, implementing client s standards, running lessons learnt sessions and weekly update calls 23

23 TURNKEY REAL ESTATE SERVICES Africa and The Middle East BRIEF A global IT company was entering new markets across Africa and the Middle East. They required turnkey Real Estate services ranging from Market Intelligence to Transaction Management and Project Management The CBRE Complex and Emerging Markets Desk was engaged to provide this service and to deliver the end to end solution. CHALLENGE NATURE OF INSTRUCTION: CLIENT: SIZE: SERVICE LINE(S) INVOLVED: COUNTRIES INVOLVED: Market Intelligence Transaction Management Project Management Global IT corporation Various Complex and Emerging Markets Desk Angola Nigeria Libya Mozambique Rep of Congo Botswana Ethiopia Kuwait African markets are very complex and require a high degree of intelligence and risk management. Also, the markets tend to be very immature and there is low supply of Grade A/B commercial properties. African markets posses numerous challenges to corporations; namely corruption, excessive bureaucracy, cultural and language complexity, security issues, absence of global suppliers, and logistical difficulties. SOLUTION CBRE / Source8 identified suitable options for the company in-country and ensured that proper legal and technical due diligence was carried out on the properties and owners Negotiated best terms on the client s behalf Took ownership of and project managed the fit out and delivery of the offices with structural, IT and security modifications Sourced furniture, fixtures and equipment for the offices, including importation of equipment that could not be locally sourced. Successfully managed the critical periods, enabled the client to meet delivery dates and mitigated risks throughout the delivery. 24

24 CBRE GLOBAL CORPORATE SERVICES TOTAL COVERAGE DELIVERING REAL ESTATE SOLUTIONS IN COMPLEX & EMERGING MARKETS 25