Since the start of the pandemic last year there has been a growing polarisation of real assets, which has impacted retail perhaps more than any other sector. It is fair to say that retail warehousing, particularly convenience and DIY-led assets, have performed better than many others through the pandemic as the ample parking, more affordable rents, strong yield profile and ability to continue trading through the pandemic has proved attractive to a range of investors.
However, not all assets benefit from these qualities and some are in need of repurposing. Repurposing does not necessarily mean wholesale redevelopment for alternative uses, in many cases introducing a more diversified tenant mix, such as refocusing an asset towards convenience rather than fashion can provide a more successful asset management strategy than fundamental repurposing.
As rents and capital values fall, secondary assets in strong locations can become more suitable for introducing alternative use. Our planning and development experts ensure that no alternative use isn’t properly considered and a diversified mix of uses is explored, including but not limited to residential, industrial, student and senior living. With experience in each area and an understanding of the key drivers of each we are able to properly assess viability of each within the parameters of what can be achieved through planning.
At Montagu Evans, we ensure that each asset is approached holistically and all potential opportunities are explored. Our cross-sector and cross-service line teams work collaboratively to assess each opportunity to maximise value for our institutional, developer and local authority clients.
View our interactive redefining retail brochure below which showcases some recent examples of how we have helped our clients achieve successful outcomes for their portfolios.