Berkeley helped PRUPIM, part of the M&G Group, and a top 20 global real estate investment manager define a future business model and strategic plan.
Where were they?
The company has been impacted by the recent downturn in global property markets, which has proven more severe than anticipated.
Key assumptions in PRUPIM’s existing 2009-2011 strategic plan were no longer valid, and PRUPIM needed to take action to reflect new market conditions.
The Board sought to rethink PRUPIM’s five year vision and strategy and reshape its three year business and operating plan for the 2010-2012 period. Key outputs from this plan were to review their business model and assess sourcing options for certain functional areas.
How did Berkeley help?
Working closely with the Board and a client-side Project Director, Berkeley created a cohesive and achievable strategy and operating plan, fully supported and approved by parent M&G and PRUPIM shareholders.
Berkeley then assessed various options before agreeing a new target business model and organisational structure clearly aligned to the organisation’s needs. Berkeley also assessed and confirmed outsourcing opportunities primarily around PRUPIM’s current Property Management operations.
Throughout Berkeley provided overall structure and management for the programme, challenged outputs emerging from the various workstreams and created credible final deliverables, future implementation approaches and plans.
Where are they now?
The revisited PRUPIM strategy drives revenue growth and diversification as well as increased profits by better serving existing business and building out the institutional business, a key growth area.
This strategy will be enabled by the new target business model and organisational structure, to be implemented over the next two years. It also creates clearer accountability within the Board, building the right team to deliver on PRUPIM’s future ambitions.
Outsourcing certain functions will allow PRUPIM to refocus on core capabilities but allow suppliers with competence and scale to undertake the majority of current in house Property Management work. Further work is planned to progress to the next stage of consideration on outsourcing, including a short list of potential suppliers.
Working with Berkeley was an enjoyable and value-adding experience. They provided an independent perspective and regularly challenged the project’s objectives and business benefits to help us create stronger overall outcomes.
Martin Moore, Managing Director, PRUPIM