Outsourcing of strategic functions
The new mantra for Real Estate companies
The entire Real Estate Industry is going through a metamorphosis. A new way of work, a new way to sell along with a plethora of regulations to closely monitor the activities is paving way for a transformation in the industry. In this regime, the role and the liability of promoters have enhanced and in certain cases even personal in nature. This has pushed the promoters to have a complete relook at their business and have changed the way they have been doing business.

Very clearly, the promoters need specialists in every area now to meet their business goals. The margins have shrunk and it is only operational efficiencies that can achieve sustainability and growth of a business.

This is encouraging the real estate industry to transform its traditional business model, from face-to-face agreements, negotiations, field data collection to collaboration with strategic partners and their advanced sophisticated technologies to drive business growth.

The industry has realized that specialization is the key. Most of the promoters have started realizing that their core competence is to identify land, get all the approvals in place, and “monitor” projects with an aim to attain profitability and cash flows, rather than “Run “projects themselves. This new thought has led to Strategic Partnerships.

Take an example of a good brand in Mumbai “The Wadhwa Group”(TWG). Though TWG has been a sales-focused organization, due to an uncertain environment and the constant fear of lockdown bothering them, TWG decided to go for a whole hog to sell stock which consists of ready, under construction and new launch projects in both residential and commercial. They collaborated with a specialist marketing and Sales Company called “Guardians” and sold almost Rs. 1,000 Cr of stock in a matter of just three months which included three new launches. Navin Makhija, the Managing Director of TWG said “Our own sales team along with Guardians made a record sale in the last quarter. While our sale team is adequate to manage our regular sales targets, but when we decided to fire all cylinders we could not add resources in the short time nor would we able to train new jonnies to deliver in time, so this kind of tie up helps the developer to keep cost in control and grow your team on a need basis. The in-house sales team provided the Company with product knowledge along with the brand value, we used Guardians to reach out to all the prospective customers based on our in-house marketing strategy. This collaborative approach is the way to go. Today, even if there are minor roadblocks on our way, we are secured with significant sales clocked and this will ensure uninterrupted construction and timely delivery to all our stakeholders”.

Another scope of strategic partnership is a new concept of “Outsourcing ofoperations”. In this model, a Real estate company outsources some of the non core areas like “Accounts, Admin, HR, Assetmanagement” to its strategic Partners. Navin Makhija further added that “we have appointed Unitern Advisors to manage all issues pertaining to those departments where we feel they can add more value than what we can personally do. Moreover, Unitern is also a sounding board for all our strategic decision-making as they not only help us strategize but also they involve themselves till the time strategies are implemented. This gives us personal time to work o n approvals, business development, Partner management, etc”.

Mr. Ratan Lath, Managing Director of Valmark, as a strategy to attain the organization’s goals has outsourced the entire sales and marketing of his company. He expressed “We had four ongoing projects which were slow moving and not at the pace at which we wanted them to. Consequently, we sat down with Unitern and decided to find specialists and unlock value from the projects. One of our projects, Apas which already had OC was difficult to sell due to ticket size, Unitern entered into this project, infused significant monies to give a facelift to the project and we now believe that the project is on the right track with Unitern at the helm of the operations and sales of this project. Similarly, we have outsourced sales and marketing of our other three projects to Realty Mate, Cushman and Fincity. This model gives me ample time to concentrate on Business Development, new land acquisitions and approvals which is our strength. Very soon we will be launching more projects using the same model.”

Mr. Mahabir Agrawall, the Chairman of Koncept Ambience - a Hyderabad-based company stated, “We are very big in Hyderabad, but not very well known in Bangalore. We have appointed Unitern Advisors to represent us in Bangalore and to do all activities end to end in Bangalore. We have a three months relationship with Unitern and we have already restarted 2 of our stuck projects where Unitern helped us to identify the right contractors, renegotiate with Financial institutions, collaborate with a high power sales team “Flow realty” and the projects are now back on track clocking reasonable sales. Apart from that, Unitern has also not only identified two land parcels but also brought in investors to buy these land parcels. We have given the end-to-end implementation of both these projects to Unitern.”

“There is a dearth of good talent and knowledge available for real estate industry and hence most Real estate companies who do not wish to have a full-time CEO / CFO / COO look for outsourced solutions like the ones offered by Unitern. We believe our USP is not only helping companies with the winning business strategy but also we get fully involved in the implementation as well. This gives a lot of comfort to our clients.” said Mr. Srinivasan Gopalan, the Chairman of Unitern Advisors

“We follow a different Development Management Model, wherein the developer does not have to forego its brand identity (unlike the existing DM Models where a superior brand cannibalises the smaller one). Unitern enhances the company’s brand by turning around the projects / companies by fully retaining its identity”. said Navin Dhanuka, CEO of Unitern Advisors.

Recently in order to strengthen our suite of services, Unitern has strategically tied up with Flow Realty, a start up company co-founded by industry veterans, Arun Anand and Vyoma Pandit. We believe, Flow will add significant value to our suite of services and we are extremely happy to work with them. We also have Mr. Kannaian as our operational partner who has 38 years of comprehensive experience in Projects & Asset Management in the Real Estate Industry including 22+ years in the Gulf. We, at Unitern believe, this trend is here to stay for various reasons like increased access to expertise, free up the time of promoters, increase productivity and achieve speedy work.

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