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 aim to maintain and increase the quality of the portfolio, favouring innovation, appeal, quality materials, in addition to sustainability.

The focus will be in particular on 4 main operating leverages:

The plan calls for investments of around €35 million in the restyling/refurbishment of the existing portfolio and in supporting commercial activities.

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 2019-2021 will involve:

 Casilino shopping center in Rome (internal and external restyling, completed in October 2019)

 

 Fonti del Corallo shopping center in Livorno (remodeling and restyling, completed in November 2019)

 

 Gran Rondò shopping center in Crema (internal restyling)

 

 La Favorita shopping center in Mantua (internal and external restyling)

 

Discover more on our future projects

We believe the role of the hypermarket as an attractor for visitors will continue to be key, even as shopping centers change, therefore we signed a Strategic Agreement with Coop Alleanza 3.0, partner and the Group’s main food anchor.

The framework Agreement relates to 18 contracts (out of a total of 20) of the hypermarket portfolio rented to to Coop Alleanza 3.0 and calls for:

  • the review of the contractual terms and conditions: the expiry dates of all the contracts affected by the agreement will be extended and some of the rents will be revised to make them more stable and sustainable in the long-term
  • the qualitative review of the assets: we identified 5 assets, where the number of stores in the mall needs to be increased, by means of reducing the hypermarket, in order to enhance the attractiveness of the centers.

The agreement represents a unique and singular opportunity to achieve the objectives to stabilize the lease agreements in the long term, as well as increase the overall sustainability of rents and future cash flow.

Moreover IGD and Coop Alleanza are committed to developing a more complete and integrated relationship, with a view to implementing shared marketing projects, conducting studies of consumer behaviour and developing Customer Relationship Management strategies.

 

In addition to the new restyling and refurbishment projects, the Strategic Plan calls for investments of around €26 million in the completion of 2 development projects:

 

 Officine Storiche in Livorno, where work should be completed by October 2021

 

 A new entertainment space adjacent to Centro Esp in Ravenna (work is expected to be completed in 2021)

 

Discover more on our future projects

 

Rationalisation of the portfolio through the disposal of some non-strategic assets for €150-200 million is under evaluation.

Income from disposals will be primarily allocated to reduce debt and leverage and partly re-invested.

Results achieved in the last years

2016

In the first half of 2016, we continued with the development of the Porta a Mare project, and the work on the Officine Storiche section.

In May 2016 we signed an agreement with Elettra Investimenti S.p.A. which calls for the installation of three solar power systems, for a total capacity of 1.4 MWp,  at three different shopping centers (Katanè in Catania, La Torre in Palermo and Le Maioliche in Faenza) by 2017. The energy produced will satisfy about one third of the total yearly energy need of these three shopping centers.

In December 2016 the mall inside the Maremà shopping center in Grosseto, opened on 27 October 2016, was purchased.

2017

In the first half of 2017, development of the Porta a Mare project continued and work started on the extension and restyling of Gran Rondò in Crema.

On 1 June the ESP extension was opened, an important work that doubled the surface of the center, while on 23 November the new piazza created by the remodeling of the internal space at the Città delle Stelle shopping center in Ascoli Piceno was opened

 

2018

In April we completed the acquisiton of a portfolio of 4 shopping malls and 1 retail park located in Northern Italy for a total investment equal to approximately Euro 195.5 million. This transaction will enable us to further consolidate our leadership in the management of locally dominant shopping centers.

On May 3rd, at the Gran Rondò shopping center in Crema, we opened a new medium surface and completed the restyling of the external facade

 

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.

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