Asset management is key to the implementation of the business plan

Asset management involves the daily management, dynamic and with a view to the long term, of our properties in order to service both visitors and retailers. The investments planned, for a total amount of more than 80 million euros, aim to make our shopping centers increasingly more attractive and innovative, and to reduce their environmental impact, preserving value over time and extending their life cycles.

More in details the investment planned over the life of the plan can be dividend in 4 areas:

1. Restyling/Remodeling/Fit-out

The plan calls for investments of around €24 million in the renewal of assets (restyling and remodeling) and in the support of commercial activities (fit outs).

We already tested these types of improvements in several shopping centers, and they benefitted tenants with positive repercussions for the long-term sustainability of our rental income.

The 4 main projects for the three years period 2022-2024 will involve:

 

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2. Development project

In addition to the new restyling and refurbishment projects, €13 million will be invested in completing the development of Officine Storiche in Livorno: a retail area of more than 15,000 square meters, which is expected to open in the second half of 2022, and a residential area of more than 5,600 square meters for a total of 42 apartments up for sale.

 

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3. Energy efficiency

The shopping centres, by their very nature, have an impact on the environment. For this reason we are committed to operate in such a way as to reduce these impacts, by identifying actions that are increasingly effective to improve the energy performance of our portfolio and mitigate its environmental impact.

Among the targets set, the main ones are:

  • -21.5% GHG EMISSIONS (location based, base 2018)
  • -15% ENERGY CONSUMPTION (location based, base 2018)
  • 100% ITALIAN SHOPPING CENTERS with charging stations for electric cars.

In the plan life €12 million will be dedicated to ESG investments aimed to the energy efficiency of our assets. The expected investments include, for example, the installation of AI devices to optimize energy consumption in 25 shopping centers, expansion of green zones (both inside and outside) to absorb CO2, solar energy panels in 7 more shopping centers and LED lighting in 9 more shopping centers.

 

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4. Maintenance capex

Maintenance capex are planned for approximately € 33 million aimed at maintaining a high standard of quality and safety of assets, such as, for example, works for the seismic improvement of the structures of our shopping centers.

Balanced asset rotation with flexible targets

The Plan also envisages an Asset Rotation strategy which provides for the potential disposal of non-core assets for a total of €180/200 million over its time horizon.  

The proceeds from the possible disposal will be used to grow within the Italian retail market, with possible economies of scale, or to diversify investments if interesting opportunities materialize or, lastly, to reduce financial leverage if deemed opportune.

Results achieved in the last years

2021

We completed an important disposal operation of a portfolio of “stand alone” hypermarkets / supermarkets for a total value of about €140 million, the proceeds of which allowed us to significantly reduce the Loan to Value and obtain financial resources to cover future needs throughout 2022.

The total investment amount to € 22.9 million.

2020

Given the difficult environment, during the year IGD deemed it opportune to postpone or cancel a few capex and investments in order to limit the pandemic’s impact on cash flow and maintain a solid and balanced financial structure.

The total investment amount to € 18.3 million.

2019

In Septemebr, we signed the final contracts involving the sale of Palazzo Orlando (an office building located inside Porta a Mare project area) and the purchase of the 50% interest in the Darsena City shopping mall in Ferrara of which we were already joint-owner.

In autumn two restyled shopping centers were inaugurated, Casilino shopping center in Rome and Le Fonti del Corallo shopping center in Livorno: in both instances work was done on the interior and the exterior of the centers in order to give them new vitality and make them even more appealing, welcoming and confortable for visitors.

The total investment amount to € 42.7 million.

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