Remit20: Consistently elevated property management across M&G’s portfolio

WHAT: Assisting M&G to evolve and improve its property management through the integration of new technology and adoption of tailored procurement strategies.

WHY: To help mitigate risks and align assets with investment and sustainability objectives, M&G needed to adopt refined management and technological practices to bolster operational efficiency.

WHEN: 2012 - present day

Property management is long past being a cookie-cutter industry, but we knew that. The past decade has been a period of experimentation and rigorous market testing, in efforts to understand the best operating models, technologies and value adds from property managers.

Navigating change has meant an increased emphasis on:

  • Detailed and accurate requirements gathering – reducing ambiguity in service levels and encouraging consensus from the start of the contract

  • Increased transparency of market performance – rigorously testing the market opens up possible options for property management

  • Supported change throughout the business – relevant expertise to advise on process change where needed, maximising new efficiencies before, during and after selecting a supplier

Remit Consulting has been working with M&G over this decade of change, helping it optimise its property management practices through improved technology use and property management market testing.

Technology to enable ‘value add’ from managing agents 

In 2012 Prupim (before becoming M&G) realised that its current technology was limiting the effective performance of its managing agent, CBRE. This triggered a technology selection exercise where Remit Consulting critically assessed five leading software against the requirements of Prupim, ultimately selecting Yardi. Remit Consulting then supported the change management needed to adopt the solution across the business.  

Objectives 

Operational efficiency: 

  • Reducing inefficient processes required by the old system  

  • Free up time for CBRE to focus on value-adds

Improved data management: 

  • Reduce the need to rely on manual spreadsheets  

  • Consolidate portfolio data in a single system 

Managing agent services needs to move with the times

Having the confidence that your property managers are performing as they should be is important for investors wanting to increase their portfolio’s value.

In 2017, Remit Consulting supported M&G by independently reviewing the performance of CBRE, enabling confidence at board level that the contract could be renewed for another three years, keeping high standards of service. This was followed by a full portfolio tender at the end of the contract, including a detailed specification drafted by Remit Consulting to reset M&Gs expectations from its managing agent.

Objectives

Service value:

  • Minimise risks of missed value by understanding better what is available on the market.

  • Formally assess the performance of CBRE to encourage continued efforts to improve service levels and value-adds.

Finding the right fit:

  • Formally reset requirements with a detailed specification and rigorous market test.

  • Maximise the opportunity to change requirements.

Confidence in decision-making:

  • A rigorous process for selection provides due diligence.

By putting requirements first, and prioritising critical market testing, M&G was able to reappoint CBRE with increased confidence that it performed best against its market competitors for a third time in a row.

Unique assets call for unique approaches

40 Leadenhall is an acutely unique asset, promoting sustainability, wellbeing and the future of cities. For these reasons, M&G chose to tender for its property management separately, with a heightened focus on innovation, ESG and partnership.

Objectives

Returns on investment:

  • Maximise the returns on the unique asset through its management.

Shared vision:

  • Select a partner which shares the vision for the asset and will proactively drive this forward.

  • Procure services early enough so that the agents can advise before practical completion.

Innovation:

  • See this instruction as separate from the rest of the portfolio, and requires more forward-thinking approaches.

A rigorous and highly specific tender process resulted in JLL becoming the successful bidder. Remit Consulting continues to support the mobilisation of JLL as the building approaches completion in 2023.

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