Lease Management

Simplicity® Contract and Billing

 

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Real Estate Lease (Contract & Billing) Management (REL) Suite

The Simplicity® Real Estate Lease (Contract & Billing) Management (REL) Suite is a specialized solution for the management of the lift cycle of real estate rental contracts such as leases and short term licenses, as well as periodic billing and generation of associated accounting entries. Simplicity® REL covers the management of rentable space, leases and licenses, retail sales, bill generation, as well as legal contractual clauses. Simplicity® REL is further supplemented with a comprehensive list of reports.

 

Simplicity® REL covers the management of rentable space, leases and licenses, retail sales, bill generation, as well as legal contractual clauses.

 

It consists of five modules:

  • Space Management (SPM)
  • Contract Lifecycle Management (CLM)
  • Billing & Accounting (B&A)
  • Retail Sales Management (GTO)
  • Rental Forecasting (RF)

 

Simplicity® REL is further supplemented with a comprehensive list of reports.

Space Management (SPM)

The Space Management (SPM) Module manages the spatial information of your commercial properties.  It supports a configurable property structure and stores a comprehensive range of property details.  The Space Management Module also allows you to define leasable products and their commercial characteristics (such as Net Leasable Area and rental rate limits).  These property data form the foundation for tenancy management and reporting for the Real Estate Lease Management (REL) Suite.

 

Key features:

Space Ontology Setup
  • Support for configurable property structure (e.g. Country, Site, Building, Land, Floor, Unit, Common Area) with unique characteristics at each level;
  • Capture basic property area measurements by Gross Floor Area (GFA), Construction Floor Area (CFA), and Net Leasable Area (NLA), and additional country-specific measurements such as (China) above-ground and below-ground GFA, (Singapore) maximum GFA and authority GFA, as well as (India) Floor Space Index (FSI) and Floor Area Ration (FAR);
  • Capture basic land area measurements by land area and plot area, and additional country-specific measurements such as (Singapore) gross plot ratio (GPR) and (India) Floor Space Index (FSI) and Floor Area Ration (FAR);
  • Support multiple units of measures for area such as square meter and square foot;
  • Define unit space as non-leasable, leasable (NLA), or leasable ancillary (non-NLA for license contracts);
  • Manage other property details such as type and categorization, ownership, purchase and acquisition costs, building specifications, land related information, policies, development information;
  • For data centers, manage relevant floor and unit information such as number of racks, power and cooling provisions, fiber pair provisions;
Space Inventory Management
  • Visualize your space inventory with interactive 2D stack plans and 3D floor plans (Gemini™ Digital Twin Visualization Analytics);
  • Upload and store floor plans and drawings for each property;
  • Manage creation, activation and de-activation of space, including mass import and approval processes for space creation and de-commissioning;
  • Generate as-at tenancy schedules and vacancy listing reports;
  • Track statutory information for reporting, e.g. anchor versus normal tenancies, land rent;
Pricing and Valuation Management
  • Set up budget, mandate and asking rental rates as well as associated service rates for each type of space;
  • Support both fixed rates and rates by floor area;
  • Perform annual valuation of properties and units;
Space Re-configuration
  • Carry out unit merging, splitting and area re-survey processes;
  • Track change of usage of space.

Contract Lifecycle Management (CLM)

The Contract Lifecyle Management (CLM) Module provides you with powerful and comprehensive functionalities for the administration of leases and short term license contracts from their commencement to their expiry and the eventual takeover of the leased units.

 

Key features:

Offer Generation, Acceptance and Handing Over
  • Automate generation of Letter of Offer once triggered by the Customer Relationship Management (CRM) Suite; integrates with Receivables Management (AR) Module of Financial Management (FIN) Suite to trigger customer registration and credit tracking process;
  • Automate acceptance with an Acceptance Items Checklist that tracks the submission of documents and payment of deposits by prospective customer;
  • Automatically trigger handing over process in the Tenant Services Management (TSM) Module in the Building Asset & Maintenance Management (BAM) Suite;
Contract Administration
  • Capture comprehensive details of a lease, such as term, rental and service rates, rent-free structure, rent review periods and limits, property tax information, renewal conditions, as well as relevant legal documents;
  • Support a single contract covering multiple lease units, and master contracts spanning multiple properties;
  • Perform and manage contract variation (change in contract conditions), novation or assignment (change in customer entity), renewal, expiry, and termination processes;
  • Flag units with expiring leases that are ready to be marketed to the Marketing & Prospecting Management (M&P) Module in the Customer Relationship Management (CRM) Suite;
  • Configure reminders for special events during the lease term, e.g. rent review;
  • Track head lease matching as well as sub-leasing of leased units;
Contract Termination and Taking Over
  • Manage contract termination processes in event of contract expiry, pre-termination or re-entry;
  • Compute final account and trigger final billing or deposit refund process;
  • Automatically trigger taking over process in the Tenant Services Management (TSM) Module in the Building Asset & Maintenance Management (BAM) Suite;
Non-cash Guarantee Management
  • Manage the acceptance, extension, encashment and redemption of non-cash guarantees in lieu of cash deposit (such as banker’s guarantees or insurance bonds) in tandem with the contract lifecycle;
Contractual Clause Management
  • Set up standard agreement templates and classify clauses according to their legal categories;
  • Define pre-approved clause variations and approval processes for other clause variations;
  • Track clause version histories;
  • Automated generation of Letter of Offer, Tenancy Agreements, Short-Term License Agreement;
Track and review your leases and property performance with a comprehensive list of reports on leases, rental trends and property occupancies (including Asset Control Group report)

Billing & Accounting Management (B&A)

The Billing & Accounting Management (B&A) Module is the financial counterpart to the Contract Lifecycle Management (CLM) Module (which handles lease and license contract administration) and Retail Sales Management (GTO) Module (which manages the GTO additional rental formulas and processes).  The B&A Module performs automated bill and credit note generation, as well as revenue accrual and amortization computation and postings.

 

Key Features:

Billing Engine
  • Automatically compute and generate periodic invoices according to the contractual schedules for rental, additional rental (GTO) and other charges (e.g. service & conservancy/ common area maintenance, advertising & promotion, administration fee);
  • Automatically compute and generate ad-hoc invoices, credit notes due to contract lifecycle events, such as new contract creation, area resurvey, contract variation, contract assignment or novation, contract renewal and contract termination;
  • Automatically trigger deposit or credit balance refund process;
Revenue Recognition
  • Support handling of accrued revenue due to billing in arrears or early accounting period closure by automatically accruing revenue in current period and reversing in the next period;
  • Support handling of unearned revenue due to advance billing by automatically generating unearned revenue posting and reversal schedules;
  • Automatically compute and post straight-lined amortization journals for lease and license contracts according to IFRS16 standards for operating leases;
  • Automatically compute and post-marketing commission amortization journals.

Retail Sales Management (GTO)

The Retail Sales Management (GTO) Module assists your retail malls to effectively manage and automate the routine and tedious process of tenant sales submission and additional rent computation.  The collected retail sales numbers also provide you with the data to do projection and importantly track and analyze tenant sales performance with trend analysis and benchmarking.

 

Key Features:

GTO Pricing Management
  • Support powerful, flexible and comprehensive pre-defined GTO formulas for easy setup of GTO terms in lease and license contracts;
  • Supported formulas include gross rent + percentage of retail sales, gross rent + percentage of retail sales in excess of a threshold, maximum of gross rent or percentage of retail sales, tiered or staggered additional rent, or user-defined formula;
  • Define different GTO structures for different types of retail merchandise, products or services;
  • Define sale periods where a different GTO structure will apply;
GTO Submission and Computation
  • Interface to Point-of-Sales (POS) Systems for automated sales figure acquisition;
  • Allows GTO submission by tenants via Customer Portal or manual submission by internal staff;
  • Allows prioritization and setting of rules to calculate Additional Rent using tenant submission, POS submission, manual submission or projected figures;
  • Automated computation of Additional Rent based on GTO lease terms reported GTO;
  • Automated adjustment of Additional Rent based on Adjusted or Audited GTO;
Comprehensive analysis and reporting of GTO numbers, for example: trend analysis, benchmarking and forecasting.

Property Tax Management (PTAX)

The Property Tax Management (PTAX) Module assists you in managing and tracking information related to the property tax of your portfolio.  The Module also helps you manage property tax objection and appeal processes.

 

Key Features:

Property Tax Management
  • Track status of property tax by maintaining a list of property tax references, unit types, designated usages, lease usages, and annual valuations for assessment;
  • Calculate potential property tax savings based on initial versus reassessed annual valuations;
  • Compute property tax expense budget based on definable business rules and track median net rental within the tax assessment year;
  • Receive and track property tax bill from tax authorities;
  • Automatically calculate the additional property tax that can be recovered from tenants;
Property Tax Objections and Appeals
  • Track and monitor property tax objection process from receipt of valuation notice, determination of desired annual valuation, recommendation and filing of objection, and management of property tax reimbursement from tenants;
  • Track and monitor property tax appeal process, including lodging of appeals and negotiation with tax authorities.

 

Rental Forecasting (RF)

The Rental Forecasting (RF) Module allows you to construct leasing scenarios and generate revenue and cash flow forecasts from those sets of assumptions.

 

Key Features:

Rental Forecasting
  • Create and manage multiple versions of rental forecast models for each building in your portfolio;
  • Factor in future planned units and effects of Asset Enhancement Initiatives (AEIs);
  • Define global assumptions (minimum lease terms, retention rates, re-leasing periods, rent-free periods, growth rates) based on market, floor level, or space/ design type;
  • Define individual unit assumptions (new, renew, always renew, vacate, change in terms) based on individual units;
  • Generate up to 10 years of revenue and cash flow forecasts;
Rental Budget
  • Create revenue and cash flow budget from rental forecast model or from Excel import;
  • Support approval process before a budget version is finalized and fit for budget-vs-actual reports.

 

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