Message from Robert Mancinelli
“We continue to optimise our portfolio. That takes discipline, discipline in how we allocate capital, discipline in how we plan and execute our projects, and ultimately discipline in how we assess and understand the markets in which we operate.”
Robert Mancinelli VP RE Strategy & Portfolio
Strategic capital planning
Cost saving strategies as key drivers in strategic capital planning for real estate
The thematics around OP24 brought a reduction in the overall capital expenditure for year 2024 by 22 percent and for year 2025 by 31 percent.
This was driven by the strategic objective to prioritise projects that have been categorised as critical for business needs, related to asset integrity and safety, provides saving opportunities and with reasonable DE&I activities.
EMEA has the largest volume of investments in the next five years with Netherlands, United Kingdom and Germany contributing over 75 percent of the total capital planning in the region. This is followed by Americas with the STCH Program and with Qatar, Malaysia and Philippines driving the investments in Asia Oceania + Qatar. The distribution of capital investment of Shell RE for the next 5 years is as shown in the heat-map.
Figure 1:
Keycities and markets heat-map
Turner & Townsend
Business footprint
Message from Ed Fray
“As we celebrate 10 years of working in partnership, we are pleased to be able to combine our knowledge of your business with our global learning from other clients and markets to bring you this insight report. As we respond to the market drivers and group business objectives together, this report will give us a firm foundation to build on in delivering value for the future portfolio.”
Ed Fray Shell RE Global Key Client Lead, London
This year’s OP exercise saw a shift in focus towards capex and opex savings. Insights into emerging technologies and highlight on potential risk and uncertainties in the construction market would enable Shell RE to make strategic investment decisions that could lead to capex and opex savings.
