RE TA IL
ADAPT OR DIE
To survive a changing landscape and global health pandemic, the retail sector has had to adapt and innovate, writes DENISE MHLANGA
Dobsonville Mall, Soweto
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ike most industries heavily affected by the coronavirus pandemic, the retail sector experienced financial losses as many tenants could not trade during last year’s level 5 lockdown. Some shops closed permanently, forcing retailers and landlords to innovate to stay in business.
RESILIENCE IS THE NEW AND URGENT PRIORITY – THE NEED FOR ADAPTABILITY, SCALABILITY AND THE VALUE OF INVESTING IN THE RIGHT PROPERTIES AND PEOPLE HAS NEVER BEEN GREATER.
FOCUS ON SUSTAINABILITY JSE-listed specialist retail real estate invest trust Vukile Property Fund responded to the crisis by seeking symbiotic solutions that ensured the sustainability of the value chain. This strategy has paid off, enabling the fund to find new ways to drive continuous value within the portfolio. Vukile has
Itumeleng Mothibeli
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remained “comfortably solvent and liquid”. Vacancies have held steady while the collection rate is up to 95 per cent of billing. Itumeleng Mothibeli, Vukile Property Fund’s managing director for Southern Africa, says that they granted concessions to tenants to ensure a sustainable value chain. “In the year ahead, we will continue to work closely with our tenants to help them pivot and reposition their business for future success where required.” However, he says, this will be different and may entail downsizing, relocation,
revamping, and upgrading of suites, for example, to the extent where it is commercially viable. Mothibeli says Vukile’s operational strategy has always been centred around operational efficiency, stakeholder engagement and alignment, a firm commitment to innovation, and prudent balance sheet management. “We’ve achieved this through creative leasing strategies, focused energy and water management initiatives, redefinition of how soft services are delivered within the mall context, and fully delivering on our capital expenditure programme to ensure that our malls are fit for purpose.” Meanwhile, Redefine Properties forked out as much as R222.6-million on rental relief packages to support the sustainability of its retail tenants last year. The company has also offered rental discounts amounting to R82-million for 2021 to cushion the prolonged impact of the ›
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2021/02/02 12:11 PM
