East-West Business Centre, Budapest, Hungary 

AIB Polonia appointed EC Harris to provide Technical Due Diligence and Refurbishment (including Project Management, Cost Management, Technical Supervision and fit-out services) of 28,000m2 office building whilst tenants remained in place.

The landlord wanted to maximise their investment returns by increasing the rental yield through improving the quality of the office-building asset, without losing rental income during the progress of the works.

The client also requested that EC Harris ensure that the tenants’ operation is not disrupted throughout the period of works, therefore effective communication together with strong Landlord / tenant relationship was critical for the client.

Creating solutions

During the detailed pre-acquisition technical due diligence of the office building, EC Harris were able to identify those technical issues that would have the highest impact on the rental yield. The findings were summarised in a report which highlighted the budget required for repairs and replacements.

Based on the findings of the thorough technical due-diligence, the scope of the project was defined. During the realisation, EC Harris was responsible for Project and Cost Management and the technical supervision.

EC Harris ensured that the building asset was competitive by comparison with the market by benchmarking the specification against market standard expectations of the targeted tenants.

Every step of the project was prepared in great detail, so there was no interference with the tenants’ business. Intensive communication with client, building operator, fit-out contractor and the Tenants was crucial.

Upon completion of the refurbished works, the value of the building asset will increase while the tenant satisfaction is expected to be improved.

Principal issues

• Architect’s copyright – assist Client to resolve copyright issue cost effectively
  
• Design control – coordinate the works and interface with the Architect and the Interior Designer
  
• Permit control – assist Client to resolve issue around legally binding Building Permit
  
• Cost control – respect budget approved by Investment Committee
  
• Control of construction works – introduce strict systems, and processes and code of conduct for on site works
  
• Tenant satisfaction – fully coordinate works with Tenants and Operator

Adding value

EC Harris added value to the project and ensured that there will be no loss of rental revenues during refurbishment through the delivery of:

• Technical and Investment Risk Management
  
• Building Surveying
  
• Cost Management
  
• Project Management
  
• Technical Supervision.