Atrium European Real Estate Reconciles Financial Close Data from Seven Countries Faster and Maximizes Revenue and Profitability
 
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Atrium European Real Estate Reconciles Financial Close Data from Seven Countries Faster and Maximizes Revenue and Profitability

Atrium European Real Estate is a leading owner, operator, and developer of shopping centers in Central and Eastern Europe. The company’s US$3.15 billion portfolio includes properties in Poland, the Czech Republic, Slovakia, Russia, Hungary, Romania, and Latvia that are managed by a multinational team of retail real estate professionals.

 
 

 
 

Challenges

A word from Atrium European Real Estate

  • "Oracle’s JD Edwards EnterpriseOne Real Estate Management and Oracle Hyperion Enterprise have powered our transformation to a knowledge-driven enterprise that maximizes the value of our entire portfolio." – Ilan Zachar, Chief Information Officer, Atrium European Real Estate

  • Maximize rental incomes, occupancy rates, and profitability for 156 retail properties in seven Central and Eastern European countries with a combined total of 1.2-million square meters of gross, leasable area
  • Streamline tenant and lease administration, accelerate rent collections, automate management and agent-fee payments, and improve productivity of a workforce of more than 20 nationalities, speaking multiple languages
  • Detect potential billing, space-management, and cash-flow problems promptly; spot changing trends in the retail business ahead of competitors; and amend operating processes in line with business needs and real-estate-management best practice
  • Optimize value of property investments, simplify planning, and minimize business risk by identifying highest-yielding property types, tenants, locations, and lease arrangement

Solutions

  • Cut administration costs by consolidating leases for 3,500 properties in seven different languages on Oracle’s JD Edwards EnterpriseOne Real Estate Management, which replaced paper documents with a single, universally accessible electronic repository of all leases
  • Boosted efficiencies by replacing disparate tenant, agent, and property-management processes in each country that were based on Microsoft Excel or had been customized to Microsoft Navision enterprise applications, with a single instance of JD Edwards EnterpriseOne Real Estate Management
  • Met the majority of each country’s business requirements out of the box, using JD Edwards’ unrivalled functionality, flexibility, multilingual interface, and support for statutory regulations relating to real estate in all Central and Eastern European countries, including Russia
  • Maximized earnings and optimized cash flow by using global view of leases and automated alerts in JD Edwards to spot renewal dates and initiate timely rent reviews
  • Benefited from unified, consistent, streamlined billing processes to track overdue payments and identify poorly performing agents, properties with low yields, outdated lease arrangements, and tenants in breach of lease conditions, and to take corrective action
  • Adapted processes rapidly and cost-effectively to meet new statutory or business needs
  • Reconciled period-close data submitted by all seven countries faster by replacing multiple Excel spreadsheets linked into a reporting package with Oracle Hyperion Enterprise at corporate headquarters
  • Eliminated risk to data integrity, impact on accounting team’s productivity, and delay in publishing financial results caused by frequently broken links in Excel files
  • Used Oracle Hyperion Enterprise to cross analyze and compare income, billings, and management costs by country and property type and give corporate decision-makers up-to-the-minute intelligence to optimize planning and investment strategy
  • Implemented JD Edwards EnterpriseOne Financials in Poland, which accounts for 50% of Atrium’s portfolio (as measured by market value), to gain integrated real estate and financial management and ensure compliance with International Financial Reporting Standards (IFRS) and European Union accounting directives, and to begin an 18-month roll out to all other countries
  • Cut time by 50% for the company’s Poland operations to produce financial data for uploading into Oracle Hyperion Enterprise following implementation of JD Edwards Financials, with confidence in achieving same benefits for the six other countries

Why Oracle

Atrium European Real Estate evaluated stand-alone, hybrid solutions from Yardi Systems, MRI Software, and Manhattan Software. The company rejected them in favor of JD Edwards’ holistic solution suite that would enable it consolidate real estate and financial management and handle the statutory reporting needs of all seven countries on a scalable platform. The JD Edwards solutions also had more comprehensive functionality with support for statutory reporting in Russia. Unlike competitors who provided support only through local resellers, JD Edwards offered experienced implementation partners with expertise in the property industry in every country.

"JD Edwards is the only solution on the market that gives us best-of-breed real estate functionality and world-class business management software on a single integrated platform," said Ilan Zachar, chief information officer, Atrium European Real Estate.

Partner

Oracle Partner and real-estate-industry consulting firm RealFoundations designed the global framework for Atrium’s JD Edwards EnterpriseOne Real Estate Management platform and defined the design for a single instance across all seven countries. RealFoundations helped Atrium structure the 18-month deployment to minimize risk and disruption, while working with the company to define strategies and develop the most effective business processes. RealFoundations is now supporting Atrium as it implements JD Edwards Financials in all countries.

RealFoundations leveraged the power of JD Edwards and its managed services capabilities to accelerate translating, abstracting, and entering critical contract terms from more than 3,500 local country lease contracts into JD Edwards. This process, combined, with the strong language capabilities of JD Edwards’ functionality, enables Atrium’s country-level personnel to measure portfolio performance in their local languages while providing complete visibility in another common business language.

“RealFoundations has a long and successful history of working with our significant shareholder, Gazit-Globe Ltd.," said Ilan Zachar, chief information officer, Atrium European Real Estate. "The deep industry knowledge of its consultants and global presence helps us leverage the JD Edwards suite for maximum yield, lowest risk, and the fastest return on investment."