Director of Asset Management for AVICA Property Investors Svetlana Kuzmina spoke to the magazine CRE Retail about why major retailers prefer to buy retail space in shopping centers.
Recently retailers have been very active if not in the acquisition of then at least in making offers to purchase the space which they lease. The magazine CRE Retail examined how sustainable this trend might be.
According to Svetlana Kuzmina, Director of Asset Management for AVICA Property Investors, most major retailers do prefer to own their premises. “How large this share of retailers is depends on their strategy and availability of funds,” the expert commented. “The main motivation is advantageous purchase conditions and reduction of lease-related risks.”
The businesses most likely to seek to purchase their premises are anchor tenants (hypermarkets and other major retailers), which can be located not only within a shopping complex but also in a separate building that is part of a larger retail center, the magazine reports.
At the same time, Svetlana Kuzmina and other experts note that the sale of part of a shopping center to retailers has clear negative implications for owners, as this may negatively impact the value and liquidity of the property.
AVICA PROPERTY INVESTORS
AVICA Property Investors manages the assets of Romanov Property Holdings Fund (50% owned by RD Group). The investment fund’s portfolio includes two luxury class retail centers – Vremena Goda on Kutuzovsky Prospekt and Dream House in Barvikha – as well as the hypermarket OBI Borovskoye and the Class A business center Romanov Dvor.