Asset management strategy – Retail portfolio – Abu Dhabi

Project Name: Asset Management Strategy for a Retail Real Estate Portfolio

Client Name: State Owned Company

Location: Western Region, Abu Dhabi

Assets Covered: Regional Mall, Traditional Souq and smaller retail establishments

Project Size: 200,000 SQM of retail assets

Project Value: Confidential

Executive Summary

The client owns a diverse retail real estate portfolio consisting of a regional mall, traditional souq and smaller retail establishments located in the Western Region. The portfolio is underperforming when compared to industry benchmarks in terms of revenue, operating cost, and occupancy levels. As such the client’s main objective is to unlock the maximum value from the asset class.

Our Solution/Recommendations

Cavendish Maxwell was appointed to undertake asset management services, during which we conducted the following activities:

• Assessed the financial performance of the portfolio in comparison to industry standards and identified specific reasons for under performance.
• Analysed granular facets of revenue and operating cost while highlighting areas which needed optimisation.
• Benchmarked comparable assets and through a pricing matrix devised the market aligned rental rates for a variety of retail tenants including line stores, anchors, F&B amongst others.
• Tailored lease rates based on business activity, unit size and location to maximize revenue generation.
• Devised the most applicable commercial term and lease structures to attract desirable tenants.
• Evaluated space allocations and floor plans while implementing strategies to increase footfall and dwell time.
• Devised strategies to activate dead spaces by attracting global brands and thus improving the customer journey.

Completion Date: 2024