Real Estate is sometimes underutilised and underperforming therefore it is always important to look at strategies in order to improve performance
How can you measure performance?
With regards to my client for Orpington, as they are an income producing client their performance is based on income, higher income, better performance. All about adding value
Can you give me an overview of the objectives of an organisations strategy?
Different objectives for difference clients.
LL client for Orpington, their objective is to increase income across portfolio which is why they were looking at a redevelopment opportunity
How have you advised a client so that you can reach their business goals?
Occupier client was interested in freeholds but wanted to expand at a rapid rate, find 'bargains' on good pitches and be cash rich.
I advised my client this is not possible and you're better off obtaining leasehold properties in prime pitched areas on short term leases to limit liability
It's in the companies best interest to reserve cash therefore don't throw all money into a risky area
What advice could a member provide with regards to achieving business needs?
Leasehold v Freehold
Benchmarking income against occupancy costs
Site specific location selection
What risks must you be aware of when realigning / repurposing the scheme?
That it doesn't fulfil what you aimed to fulfil
Costs far outweigh return
Impact on the overall scheme
How did you fuel business growth?
On behalf of one of my occupational clients
I met with my client to discuss future opportunities at our 3 monthly meeting
I determined that his best operating stores based on net profit were stores located adjacent to large format supermarkets
I then changed our requirements flyer to reflect the need to sit adjacent to large format supermarkets
This led to a further 4 successful acquisitions before I left the company
How did you determine affluent areas?
I would look on Street Check which provides details on social grade on a area
Found grade C2 which is for skilled manual workers
Tell me about the advice you provided in Orpington?
One of our anchor tenants decided they were not going to renew at expiry and that they were leaving
Discussions were ongoing for a number of months on the redevelopment of one entrance of the scheme in which we were not involved in however it wouldn't be able to begin until 2023 due to a tenant being in situ in that area
I advised my client to relocate the tenant into the now vacant anchor store so that the redevelopment could begin sooner
I successfully managed to surrender existing lease and negotiate a new lease to the occupier to take the store at a greater rent but with a £150k capital contribution to help towards fit out purposes as well as 6 months rent free
Client was able to begin development works
Tel me about the advice you provided for Coventry
Tenants and consumers in Cov made it clear during events organised by the centre management team that the area lacked a sense of place / food kiosks
I advised my client that to increase footfall and overall customer experience, we should erect a number of food kiosks
I advised my client consult with an architect and building surveyor to get costs and drawings for 3 x kiosks
To test the market I drafted marketing particulars STPP with an estimation on completion date which was 18 months out and CGI's
I received a lot of interest but for slightly larger sized units therefore recommended my client speak to the architect to amend the plans to suit occupier demands
Plans and heads of terms were agreed with two occupiers which are ongoing as I left my post
What advice did you provide in Peterborough?
I assisted in advising my client to amalgamate a number of smaller units to create larger units to suit occupier demands
This area of the scheme was largely vacant due to the compromised shapes of the units as they were very narrow and long
This created a sustainable tenant mix as we were able to grant 3 new leases within 12 months which increased income and satisfied my clients expectations