Reversing an Alarming Trend in Operating Expenses

AIG and White Star Partners used its technical expertise and purchasing power to bring operational expenses in line with the competition.

Property Name: Charles de Gaulle
Location:Bucharest, Romania
Property Type:Office
Service Types:Property Management, Technical & Facilities Management, Construction & Project Management
Size:22,564 m²
Client:GLL Real Estate Partners
Website:http://www.cdgplaza.com/
Main Tenants:Vodafone, Raiffeisen, Unicredit, Generali, Allen & Overy, Regus, Lafarge, City Grill

Challenge

When AIG and White Star Partners began managing the Charles de Gaulle office building, rising operating expenses directly tied to several unfavorably structured and expensive service contracts were causing the owner to become increasingly concerned about the project’s ability to compete with buildings in the market with lower service charges.

Solution

Our experience as both property manager and owner enabled us to identify disadvantages in several agreements and expense areas which were outside an acceptable range. Using a combination of technical expertise, persistence and our purchasing power, we restructured and retendered many of the services for the property.

Results

Through savy retendering of the services, AIG and White Star Partners were able to achieve a 20% reduction in the building service costs while maintaining the same level of quality.