Retail
The retail sector is undergoing tectonic changes through the rise of e-commerce and ‘Experience over ownership’.
In Turkey, the retail sector is further affected by οver-supply, poor economic performance and currency fluctuations.
As a result:
- Many centres have witnessed dwindling financial performance….
- …causing a decline in income and value
- …resulting in a breach of loan covenants and rendering the loan non-performing
- Denial – which will most probably lead to a permanent value destruction
- Fixing the symptom (e.g. renegotiating the loan) but not the problem
- Trying to address the problem itself
- Refine: optimize the tenant mix, costs, management etc. with little or no capex
- Reposition: improve and extend the current retail space through the judicious use of capex
- Repurpose: transform (part of) the space into an alternative, non-retail use
- Independent Business Reviews
- Asset Management
- Property Management
Pure shopping centres are being transformed to mixed-use destinations, combining retail, entertainment and logistics. There are a number of actions that owners and lenders may take:
When trying to address the problem, actions range from the minimally invasive to the comprehensive:
Together with our partners Akyaşam we offer:
