09-09-01 ACI Non-Aeronautical Revenues, Airport Real Estate

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


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%


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


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



� 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.)



� 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



� 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!



� 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



� 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


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



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



SRE Property Portfolio 495.513 m²

Operating Others

Operating Terminal

Industrial

Offices28%

43%

6%

23%



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



CargoWorld(Southeast)

Northwest

P3 ElzenhofNorth

Aerospace Exchange(East)

CargoWorld(South)


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)


Special Cases - Newport


Special cases - Newport

Crew Hotel

LuggageTerminal

Terminal offices

Crew centre


Special Cases – GA Terminal


Special Cases – GA Terminal


Last but not least

Questions?

Documents

09-09-01 ACI Non-Aeronautical Revenues, Airport Real Estate