Non Aero-nautical Revenues
Real Estate – Property Management
01-01-2009, by drs P.C. Van der Horst MSc
sr. Real Estate Developer
© 2009 Airports Council International ACI GLOBAL TRAINING HUB
Content
� Non Aeronautical Revenues
� Airport servicelevels
� Airport Real Estate – Property Management
� Schiphol Real Estate
� Special cases
� Questions
© 2009 Airports Council International ACI GLOBAL TRAINING HUB
Non Aeronautical Revenues
� On average: 50% of revenues at airports consists of Non Aeronautical Revenues
� At Amsterdam Airport Schiphol (AAS) it is about 45% of revenues
� But Non Aeronautical resultscontributes more than 80% to the Operating Result
� Real Estate contributes more than30% to the Operating Result
� Highest office rents in the Netherlands at AAS (€ 385 /m2)
Operating result AAS 2008
17%
47%
32%
4% Aviation
Consumers
Real Estate
Aliances andParticipations
Revenues AAS 2008
55%26%
12%7%
© 2009 Airports Council International ACI GLOBAL TRAINING HUB
Service Customer
1: Core Business (Aviation) Airlines
2: Commercial services Passengers
3: Leisure services Passengers, employees, visitors, local residents
4: Conference services Business passengers
5: Property Management/ Companies, local community
Real Estate
1
2
345
Airport Service levels
Airportcity
© 2009 Airports Council International ACI GLOBAL TRAINING HUB
Airport Real Estate – Property Management
� Terminal related (landside), levels 3 and 4
� Shopping mall, retail, Leisure
� Food and beverages
� Conferences
� Hotels
� Terminal offices
� Non terminal related (Airport area Business park), level 5
� Commercial offices
� Hotels
� Restaurants, leisure
� Parking places
� Warehouses
© 2009 Airports Council International ACI GLOBAL TRAINING HUB
Airport Real Estate – Property Management
� What makes an airport area attractive as place of business?
� Area Logistics (Highways, train, metro etc.)
� Number of destinations of the airport
� 24-7 environment
� Dynamic environment
� Glamorous, image, PR
� Reduction of travel time and costs for employees
(international companies)
� High Servicelevel (carrental, shops, food & beverages etc.)
© 2009 Airports Council International ACI GLOBAL TRAINING HUB
Airport Real Estate – Property Management
� What kind of companies are interested in an airport area?
� Local companies who benefit from the airport logistics
� International companies
� Trade representative offices
� Professional associations
� Regional/continental Head Quarters
� Banks
� Consulting / auditing companies
© 2009 Airports Council International ACI GLOBAL TRAINING HUB
Airport Real Estate – Property Management
� What do you need?
� An airport (with minimal amount of destinations)
� Land (in the airport area)
� A cooperative community (planning, regulations, legal etc.)
� A cooperative government
� A sound organization (Real Estate Development knowhow)
� A well supported masterplan
� Adequate financial funds
� Pro active general management (not just Aviation or logistic
experts)
� What do you get? � Income, jobs and growth!
© 2009 Airports Council International ACI GLOBAL TRAINING HUB
Airport Real Estate – Property Management
� Pitfalls creating a Businesspark at / near an Airport:
� Businesspark blocks Aviation development
� Businesspark causes trafic jams / congestion
� Not enough cooperation from community - government and /
or fragmentated planning frameworks over several districts
� Not enough funds to buy the land / develop the area
� Development of the airport area causes environmental
problems
Need of a good masterplanning, support from the localcommunity and regional development agency
© 2009 Airports Council International ACI GLOBAL TRAINING HUB
Airport Real Estate – Property Management
� Strategy
� Real Estate Options
� Groundsale (quick win, limited control)
� Groundlease (quick win, bit more control)
� Develop and sale (ground- and developmentprofit, more control)
� Develop and keep in investmentportfolio (ground- and
developmentprofit, most control)
� Real Estate Objects
� Hotels, conference and exhibition complexes
� Industry / warehouses
� Shopping malls, entertainment facilities
� Offices
� Land bank
Organizationstructure dependson these choices
© 2009 Airports Council International ACI GLOBAL TRAINING HUB
Schiphol Real Estate
� Goal:
� Development of and investment in airport related real estate
and Business parks
� Strategy:
� Development by SRE for own investmentportfolio (90%) and
groundleases (10%)
� Warehouses, commercial offices, terminal offices, hotels and
Business parks
© 2009 Airports Council International ACI GLOBAL TRAINING HUB
Schiphol Real Estate
Development
Investments
Property management
Staff departmentsMarketing
Spatial PlanningFinance & Control
LegalHR
Developer
� Area development
� Project development
� New concepts
Owner
� Land
� Buildings
� Fund management
ACRE Fund
Management
� Commercial
� Technical
� Administrative
Organization
© 2009 Airports Council International ACI GLOBAL TRAINING HUB
Schiphol Real Estate
SRE Property Portfolio 495.513 m²
Operating Others
Operating Terminal
Industrial
Offices28%
43%
6%
23%
© 2009 Airports Council International ACI GLOBAL TRAINING HUB
Schiphol Real Estate
AREA DEVELOPMENT
� Schiphol Centre mixed use
� Aerospace Exchange mixed use
� Cargo World cargo - logistics
� ACT cargo - logistics
� Elzenhof offices
� Rotterdam Airport mixed use
� Eindhoven Airport mixed use
� Milan Malpensa Airport logistics / offices
© 2009 Airports Council International ACI GLOBAL TRAINING HUB
Schiphol Real Estate
CargoWorld(Southeast)
Northwest
P3 ElzenhofNorth
Aerospace Exchange(East)
CargoWorld(South)
© 2009 Airports Council International ACI GLOBAL TRAINING HUB
Special Cases
� Combination of aviation activities and commercial activities in
one building (not being the Terminal itself), being developed by
Pieter van der Horst (SRE).
� Newport: Crewcentre (15.000 m2), Crewhotel (14.000 m2),
terminal offices (20.000 m2), luggage terminal (5.000 m2),
special concepts (2.000 m2)
� GA Terminal: General Aviation Terminal (1.500 m2),
commercial offices (3.000 m2) and underground parking
space (1.500 m2)
© 2009 Airports Council International ACI GLOBAL TRAINING HUB
Special Cases - Newport
© 2009 Airports Council International ACI GLOBAL TRAINING HUB
Special cases - Newport
Crew Hotel
LuggageTerminal
Terminal offices
Crew centre
© 2009 Airports Council International ACI GLOBAL TRAINING HUB
Special Cases – GA Terminal
© 2009 Airports Council International ACI GLOBAL TRAINING HUB
Special Cases – GA Terminal
© 2009 Airports Council International ACI GLOBAL TRAINING HUB
Last but not least
Questions?