As a retail property investor, you need to quickly understand a scheme’s true potential prior to acquisition, so that you can value its growth and formulate your management strategy once it belongs in your portfolio.
FSP has been helping investors to acquire shopping centres, retail parks and outlet centres since the early 1990s and has worked on over 40 pre-acquisition projects over the past 3 years, both in the UK and mainland Europe. We have a deep level understanding of trading performance and retail business drivers and our well-honed approach is designed to rapidly gather and distil the essential information in as short a time as possible, while in due diligence.
FSP has provided Pre Acquisition and Pre Financing advice to Ares, Deutsche Bank, Hermes, Praxis Holdings, Legal & General and M&G Real Estate leading to the acquisition of schemes such as ARC (Bury St Edmunds), Shopping City (Salford), Trinity Walk (Wakefield), Jackson Square (Bishops Stortford) and Fremlin Walk (Maidstone). FSP has also worked on Portfolio acquisition including The Junction Fund (Retail Parks) and X Leisure.
FSP provides Clients with a clear, objective understanding of retail performance, income risk and the issues influencing shopper behaviour. With time for due diligence being limited, FSP’s speed, accuracy and depth of detail, allows you to quickly assess consumer demand and retail merchandise supply opportunities, whilst also giving a thorough understanding of the degree of retailer risk involved.
FSP Pre-acquisition processes include:
Using the most appropriate methodology for properties across the UK or European mainland – NSLSP (National Survey of Local Shopping Patterns), IMPACT (FSP’s gravity model) or drive time
- Evaluate demographics and spending
Depending on location a summary of all the key statistics including age and socio-economic profile, lifestage, ACORN/MOSAIC, age grouping, purchasing power plus detailed spending power data by merchandise group and category
- Assess rent sustainability
Calculate retailers’ conversion from gross space to net selling area, estimate sales and use FSP’s unique Retailer Database to estimate the level of sustainable rent which can be afforded. FSP has developed its Database over many years, it includes details of over 35,000 retailers plus detailed profitability models for key operators. The comparison of sustainable and passing rents highlights opportunities and vulnerabilities
- Identify tenant mix opportunities
Assess the trading location’s retail strengths and weaknesses and, by comparison with identified competitors, propose a series of prioritised recommendations to improve performance.
Having undertaken more than 3,500 projects over the last 25 years, FSP has unrivalled knowledge of shopping locations. Indeed, there are numerous assets that we have assessed several times during our history. It is the combination of this extensive experience, detailed retailing and leisure insight and perfectly fitted client service that makes FSP ideally placed to prioritise both the opportunities and risks associated with your potential retail investments