Concordia and SAGA International with consent from RERA bring revolutionary model to manage and tender service providers in freehold properties
Dubai, United Arab Emirates, October 3rd 2019: With extensive review of prevailing service delivery models for the management of freehold property in Dubai, Concordia and SAGA International recently launched a revamped approach to the management of buildings. This approach incorporates a methodology that takes a portfolio-wide outlook across the entire group of properties under management. This has resulted in many advantages that include higher efficiencies, single point of accountability, common standards and procedures across the portfolio, and, as a very pleasant by-product, high-cost reductions and savings of up to 25% for each of the buildings that are part of the portfolio.
Presently, every freehold building in Dubai is being managed by a management company that is approved by the Real Estate Regulatory Agency (RERA) and appointed service providers, all working in their respective silos. Accordingly, each tower has its independent service contracts that are generally loaded with manpower, supervision, management, tools & equipment, overheads, and profit margins for each service line.
Furthermore, the dedicated manpower deployed to each such building may not be utilised for more than 50% of the time, and thus, resulting in lower productivity and a waste of resources and man-hours.
“RERA and Dubai Land Department are proudly progressing upon the vision HE Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, to make Dubai an attractive destination for real estate investors by introducing transparency, regulations to increase condence and monitor how the market is evolving in the real estate arena. When SAGA International and Concordia approached us, we established a solution for managing built environment as a portfolio rather than individual buildings, it aligned with RERA’s vision of introducing efficiencies with a higher focus on maintaining the life and value of assets at a more affordable cost,” said Mohammed Khalifa bin Hammad, Senior Director of the Real Estate Regulatory Department at RERA.
Concordia recognised this as an opportunity and introduced modern best practices, which are common in mature markets, by implementing an ecient service-delivery model that would utilise the assigned pool of resources across the portfolio, thereby increasing the productivity of its teams while working with stringent SLAs and KPIs that are mutually agreed upon. This helped change the outlook of all stakeholders to move away from an input to an output specification contract. OAMs and real estate managers will increasingly aim to control building performance, across portfolios, using a single central source of action.
This resourceful strategy also revealed significant commercial benefit to each of the buildings within the portfolio, while maintaining the same quality and management standards that clients have been used to. Now they are paying less for the same.
The close collaboration, hard work, and eorts of both SAGA International and Concordia have made this possible under the auspices of RERA as a pilot project which, once successfully tested, will be rolled out across the Emirate of Dubai.
“Facility Management complements community management and is a key role in preserving and prolonging the assets of the properties. The healthier the asset, the higher its return will be, which will in turn attract investors, owners, and tenants. Additionally, a building that is well-maintained by a facility management working closely with the community management company will understand the needs and requirements as well as adjust and enhance any service,” said Samer Ganni, SAGA International.
“Successful management of freehold properties requires skilful stewardship of the physical space, tenant relationships, and the reputation
of building in the marketplace. Having multiple service providers managing your properties means you may not be receiving comprehensive guidance on how to maximise the value of your portfolio as a whole.
Properties require maintenance and management, and with a growing portfolio, these duties usually require more time to support. Appointing a progressive facility management service provider can be advantageous from the perspective of freeing up an association manager’s time and harnessing the expertise of a team dedicated to helping owners get the most out of their investments. With SAGA International, we are moving towards active management that involves co-managers or a team of managers looking at all aspects of the portfolio. The goal is to optimise, engage, enhance, control, and benchmark,” said Sanjay Bhatia, Concordia Integrated Facilities Management.