Real estate and REITs

A leading commercial real estate company was facing significant challenges in process efficiencies, system standardisation, and manual work within its core and support functions. These issues were attributed to rapid inorganic growth over the past 3-5 years. The leadership recognised the need for digital intervention at an enterprise level to enhance effectiveness and efficiency, making digital a strategic priority at the core of the company.

We facilitated boardroom sessions with leadership to establish a digital vision, business objectives, and a comprehensive digital strategy, using proprietary questionnaires and interviews. A digital maturity assessment helped gauge the current state and identify key digital opportunities. We assessed the enterprise business model to discover new growth avenues and conducted detailed process reviews across 18 areas. We defined business journeys (Purchase to Pay, Quote to Cash, Hire to Retire, Record to Report, Plan to Exit) to pinpoint process improvements, design a Digital Operating Model blueprint, and develop a thorough business case and roadmap for digital implementation.

The client achieved a robust, value-based digital maturity assessment, formulating a clear strategic vision with digital integration. They mapped detailed business journeys to harness digital for end-to-end value, and built a comprehensive digital portfolio across value creation, delivery, and sustenance. This identified over 300 digital opportunities in areas like Web3.0, automation, AI/ML, and system optimisations. A two-year digital roadmap with a clear implementation plan and quarterly investment cases was established.

A leading Mumbai-based business conglomerate with interests in real estate needed to redevelop a building owned by a charitable trust, adhering to Mumbai's Development Control Regulations 33(7). The building was occupied by an equal mix of tenants and licensees. The goal was to redevelop the property ensuring all occupants received ownership units without compromising their rights, while minimizing cash outlays and optimizing for tax and regulatory efficiency, including stamp duty.

We proposed multiple solutions to meet the client's needs, with the selection of a hybrid structure combining a Joint Development Arrangement and a construction contract. This strategy overcame the limitations of each standalone option. The finalized hybrid structure allowed existing occupants to receive ownership units, preserving their tenant or licensee rights. The developer was compensated with additional units for bearing the redevelopment costs, thus addressing the client's concerns about cash flow.

The proposed structure received positive feedback from the client team and is currently under consideration by all stakeholders, indicating a promising step forward in the redevelopment project.