CREFC EUROPEAN CONFERENCE

LONDON

Isabelle Hease shares Ellandi's views on 'Talking Retail' panel at CREFC European Conference - November 2019

Isabelle delivered the opening presentation for the panel session titled: Sooner or later, Retail will re-emerge from the doldrums. How are retailers and retail landlords planning the future of high streets and shopping centres so they can not only survive, but thrive?

The presentation covered thoughts on the following: 

 

Purpose and Re-positioning:

Examples of places we are involved in that showcase successful re-positioning of assets, and what the main barriers are to bringing in complementary but different uses to retail led schemes.
Is the focus on experiences as the solution to retail decline overly simplistic, and can’t convenience led schemes have as clear a purpose as regional destinations?  

 

Business models:

How leasing in the UK is changing to reflect retailers’ desire for more flexibility.
What new lending models for measuring risk should be considered in light of changes to the retail landscape (shorter lease lengths, increasing volumes of non-lease related revenue being generated in retail schemes, the impact of CVAs on the assumed strength of a covenant, a move towards understanding retail scheme performance based on an NOI model, for example).
Are new asset valuation methods needed to better reflect these changing dynamics?
How important is patient capital in supporting the delivery of thriving retail destinations, how realistic are some investors expectations of returns, and vendors expectation of pricing?  

 

Data Sharing:

The importance of better sharing of data between occupier, owner and debt providers / wider capital markets, given the need for capital to be available for yearly cap ex and longer term investment in re-purposing of retail schemes. Should we also look to other countries (North America and in Europe) to understand what impact better data sharing has on risk and liquidity? 

Contact: Isabelle Hease

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