ONE AND ONLY

WITH “ONE” BILFINGER BERGER IS AIMING TO REVOLUTIONIZE THE REAL ESTATE WORLD: “ONE” OFFERS PRIVATE SECTOR CLIENTS THE SAME BENEFITS THAT, UNTIL NOW, HAVE BEEN RESERVED FOR THE PUBLIC SECTOR.

Another hour to go until the trade fair closes and the halls at Expo Real in Munich are beginning to empty. The first groups of workers are hovering, waiting to start dismantling the stands. Nicole Lackmann and Dr. Christian Glock are seated in white leather armchairs at the Bilfinger Berger stand in Hall B1, looking tired but satisfied. The two managers have spent the past three days at this commercial property fair talking about the Group’s new product, “one.” They have explained, argued, listened, and promoted the product. And they have repeated what Roland Koch, Bilfinger Berger’s new Executive Board Chairman, said on the first day of the show: “There is no other product like this on the market.”

FULL COST GUARANTEE
Sitting with them at the stand is Thomas Schober, Managing Director of the Sachsen- Fonds Group. His company manages investments valued at around six billion euros for private and institutional investors. The bulk of the money is placed in funds specializing in large office properties—in Germany, Europe and overseas. “We are on the lookout worldwide for investment properties that tell a convincing story and are economically attractive,” says Thomas Schober.

The new concept from Bilfinger Berger offers what investors want, all the more so in turbulent times: long-term security with no unpleasant surprises. “Time and again we have looked for a deal such as “one,” but evidently no provider until now was in a position to offer such a thing,” says Schober.

What makes the product unique is the cost promise: “one” offers the client—whether it be a fund or a company with its own real estate portfolio—a guarantee that extends over decades not just for the design and construction costs, but operating costs as well. “Throughout the entire life cycle of the building we relieve clients of the risk that their estimates will be undermined by unexpected repair and maintenance costs or a sudden increase in energy consumption,” explains Nicole Lackmann. If required, even services such as cleaning, catering, security and mail can be included in the cost guarantee.

“We already have years of experience with PPP projects: public private partnerships are based on precisely such guarantees,” Christian Glock continues. “We make an in-depth study of all the details when we are designing a building and we constantly compare one solution with another.” Nicole Lackmann agrees: “Our projects may be more expensive at the initial investment stage, for example because we invest in better quality construction materials or more costly technical services, but in so doing, in the long term, there are cost advantages to be gained of between ten and 20 percent.”

Although “one” may be new for private investors, the concept has been tried and tested by Bilfinger Berger. Over the years, the company has implemented more than 30 PPP projects that combine design, construction and operation over extended periods in Germany alone. Clients have included cities, local authorities and federal states. The spectrum ranges from parking garages to large administrative centers. The private real estate sector, as SachsenFonds Managing Director Thomas Schober discloses at the stand in Munich, is ripe for such a life cycle package. The private sector has “long cast envious glances,” as the public sector enjoyed the benefits of allinclusive packages with fixed cash flows. Now, with “one,” private investors have the same opportunity.

Text: Wolfgang Brand, Photo: Christoph Püschner
Bilfinger Berger Magazine 1/2012