Digitalisation Creates a Competitive Edge in Real Estate
From hybrid work models to cost pressures, revenue risks and energy shortages, real estate professionals today face significant challenges. The rising adoption of smart buildings brings several benefits but also raises increased concerns about cyber risk, while the focus on improving the energy efficiency and sustainability of real estate portfolios has intensified due to more stringent ESG reporting guidelines.
In response to these challenges, REInvest Asset Management S.A., a leading European real estate investment and asset management group, has formed a strategic partnership with Siemens, aimed at leveraging technology expertise to cost-effectively transform existing commercial real estate assets into carbon-neutral, future-proof buildings that meet the evolving needs of owners and investors.
This strategic partnership between REInvest and Siemens comes at a critical time for real estate professionals. It will enable them to more effectively pursue their ESG goals and reduce operational costs, providing solutions to improve resource efficiency, enhance tenant retention and ultimately increase the overall value of properties.
Pilot project delivers competitive advantage
A key driver for the REInvest-Siemens partnership was establishing technical standards to achieve business objectives across REInvest's pan-European portfolio. REInvest set performance targets based on financial and other indicators, with both partners then collaborating to derive operational objectives with associated KPIs and select the optimal use cases, technologies and solutions. These technical standards and detailed requirements for space utilisation and operations now form the baseline for all of REInvest's buildings.
The partners’ initial pilot project was the refurbishment of the historic Eastcheap Court commercial building in London, intending to showcase how smart building technology can create greater value for tenants and the building owner.
The result has been an autonomous building supported by a new IoT-enabled Building Management System. Smart sensors collect, store and analyse real-time data, enabling the building to reduce energy costs and consumption, lower CO2 emissions and provide a healthier, more comfortable indoor environment for occupants. A cloud-based analytics platform continuously monitors building performance and KPIs, while smart applications also offer on-demand control capabilities for users.
This dynamic, intelligent building exemplifies state-of-the-art performance in terms of occupant well-being, adaptability, improved total cost of ownership, and scalability for the future. Eastcheap Court has increased in value and demonstrates how competitive advantage can be achieved through this approach.
According to the companies, the successful model used at Eastcheap 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.
Siemens and REInvest: A powerful partnership
The strength of the REInvest-Siemens partnership lies in the expertise each organisation brings to the table. Siemens, a global technology leader, offers a vast portfolio of smart building solutions. Partnering with a specialised real estate asset management firm like REInvest provides a valuable external market perspective, which is incorporated at both the strategic and operational levels.
"With the customised brand standards and the Siemens Enterprise team’s mission to ensure their implementation across our buildings portfolio, we are confident that it will achieve our digitalisation and sustainability goals for the benefit of our investors and tenants,” comments Thomas Merkes, Head of Asset Management at REInvest Asset Management.
As Stefano Valdrighi, Head of Enterprise Business at Siemens Smart Infrastructure, explains, Siemens provides standardisation 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, we deliver monetisable outcomes,” he says. “We're delighted to be a strategic partner to REInvest, whose values are so close to our own.”
