How digital technology creates a competitive edge for real estate
New hybrid working models, cost pressures, revenue risks and energy shortages are some of the market trends challenging real estate professionals today. Increased expectations for Smart Buildings have also raised concerns about cyber risk among owners and investors who have identified this as the trend most likely to impact their financial performance. In addition to these challenges, the focus on the energy efficiency and sustainability of real estate portfolios has intensified with the growing number of ESG reporting guidelines. Cleary, there has never been a greater need for fast and scalable solutions to transform buildings into more sustainable and profitable assets.
Speed, scale, standardization
In response to these challenges, REInvest Asset Management S.A., a leading European real estate investment- and asset management group, and Siemens Smart Infrastructure, a market leader in smart building technology, have formed a strategic partnership to create future-proof commercial buildings in Europe. The alliance promises to leverage technology expertise to meet the needs of real estate owners and investors by supporting the cost-effective transformation of existing assets into carbon-neutral buildings.
This partnership is a timely collaboration for real estate professionals looking to tighten their ESG ambitions and drive down operational costs. It will also address how to improve resource efficiency, maximize tenant retention, and increase the overall value of properties.
Pilot project delivers competitive advantage
One of the key drivers for the strategic collaboration was to define the technical standards to achieve the business objectives across a pan-European portfolio. REInvest set their performance targets based on financial and other indicators; together the strategic partners derived the operational objectives with associated KPIs, then selecting use cases and the best technologies and solutions. The technical standards and a detailed description of space utilization and operational requirements now form the baseline for all REInvest’s buildings.
The pilot for the partners was the commercial building “East Cheap Court” in London. The aim of refurbishing this historic building was to showcase what can be achieved by smart building technology to create greater value for tenants and the owner. The result is an autonomous building supported by a new Building Management System with IoT infrastructure and smart sensors that collect, store, and analyze real-time data. The solution reduces energy cost and consumption, CO2 emissions, and creates a healthier indoor environment, providing increased user comfort. A cloud-based analytics platform manages building performance and KPI reporting on a continuous basis, and the smart applications provide on-demand control for its users.
This dynamic and intelligent building is the definition of up-to-date performance, featuring well-being, adaptability, improved total cost of ownership and native expendability; it has increased in value and showcases how competitive advantage can be achieved. The successful model used at East Cheap Court will be replicated and amended for the individual needs of other assets, as a best practice for buildings across Europe, delivered by a dedicated Enterprise team.
The strength of this partnership lies in the expertise of each company. Siemens is a global tech company with a vast portfolio of smart building solutions; partnering with a specialized real estate asset management company such as REInvest brings a valuable external market perspective to incorporate at both a strategic and operational level.
Stefano Valdrighi, Head of Enterprise Business at Siemens Smart Infrastructure, says:
“We provide standardization across global programs with holistic, innovative, scalable solutions and services for real estate assets. Our clients have access to a global network of operations and systems integration expertise through a single point of contact; combined with a comprehensive portfolio of traditional and digital service offerings, we deliver monetizable outcomes based on financial KPIs. We’re delighted to be a strategic partner to REInvest, whose values are so close to our own.”
