In one of the largest outsourcing contracts ever awarded in EMEA, the global real estate fund manager PRUPIM chose CBRE to perform property management and accounting services for its 45 million-square-foot property portfolio in the United Kingdom. PRUPIM is part of the international financial services group, Prudential PLC.
“CBRE is a world-class organization with the experience and scale to ensure that our property management and accounting services remain of the highest standard,” said Martin Moore, Managing Director of PRUPIM. “The move is in line with our strategy of focusing on our core capability as a global property fund manager. It enables us to continue to grow our range of institutional and retail fund management clients and mandates, in the UK and globally, while continuing to provide best-in-class service to our existing clients.”
PRUPIM’s UK portfolio consists of roughly 800 properties with an estimated value of £12 billion (approximately $18.6 billion using December 31, 2011 currency conversion rates). About 85 PRUPIM employees transferred to CBRE as part of the contract.
“To take on a portfolio of this scale is an extremely complex and multi-faceted challenge, involving a depth of technical, cultural and commercial skills,” said Andy Hay, CBRE Managing Director of EMEA Asset Services. “The assignment exemplifies CBRE’s unique ability to present solutions for a complex, multi-market real estate portfolio, and serve as a partner who can help clients optimize their assets, meet their strategic goals and put all of their resources behind growth.”
The PRUPIM transaction reflects the continuing trend of outsourcing in EMEA. These long-term contractual relationships allow CBRE the benefit of a growing stream of recurring revenue.