Real Estate Risk Transfer Initiative

JP Morgan / Morgan Guarantee Trust Company of New York

Confidential

Investment banking is subject to technology-driven changes with a mismatch between the interests of institutional property investors and the rapidly changing tenancy objectives of the financial services sector.  The bank was constrained by the London portfolio being long-term leasehold. The brief was to design a process so as to be able to react to market conditions with great speed.

Business Consultancy Vector was appointed as the bank’s consultant strategic advisor, working in close harmony with the bank’s New York and London management teams.  The role involved mentoring senior management, facilitation, analysis, change management and alignment of interests.

The bank is now be able to procure its operational requirements with unprecedented variability, managing this flexibility in a manner similar to trading in commodity options. The process has been designed to transfer fixed asset costs into economical variable costs, and to react to market conditions with great speed.