Background
The railway reform law resulted in the creation of a new integrated public industrial and railway group, organized into three public industrial and commercial institutions (EPIC).
In order to ensure dynamic, consistent management of the new group’s real estate, a specific branch was created, constituting a business line in its own right, in charge of managing, developing, and enriching real estate assets, excluding train stations.
The project involves developing the 10-year strategic plan, including the overall economic path, of this new real estate branch by taking four areas into account: developing property assets, optimizing operating expenses, optimizing the model for managing the real estate function, and defining a housing strategy.
Challenges
Alongside the client, Wavestone identified several major challenges:
- Identifying and modeling the impacts of the various levers operated for each of the areas (maximizing proceeds from sold assets, reducing occupied areas, optimizing costs, etc.);
- Drafting the Strategic Plan;
- Developing a Business Plan for each of the EPICs by taking into account projected operations (asset sales, use, investments) and the ultimate economic path.
Responses & key success factors
From design to deployment, Wavestone helped:
- Establish the Strategic Plan (ambition, strengths and weaknesses, three-year action plan, economic path by lever);
- Formalize the Business Plan (planning of operations, property development cash trajectory, etc.).
