Diligence Overcomes Unlucky Timing

AIG and White Star Partners used its expertise in multiple disciplines to ensure a retail project survived and grew in a tough economic environment.

Property Name: Campus Square
Location:Brno, Czech Republic
Property Type:Retail
Service Types:Asset Management, Property Management, Leasing, Marketing
Size:21,509 m²
Client:White Star Real Estate
Website:http://www.campusbrno.cz/
Main Tenants:Tesco, Marks & Spencer, Hervis, Humanic, CCC, Deichmann, DM, New Yorker

Challenge

The center was opened in October 2008, coinciding with the onset of the global financial crisis. This lead to lower-than-expected footfall and revenue numbers in the first year.

Solution

Despite the unlucky timing, the center was opened with a 95% occupancy rate, thanks to AIG and White Star Partners’ persistent and comprehensive leasing efforts. The company likewise applied diligent management and intense marketing aimed at increasing initially weak footfall and revenues. Management focused on controlling service charges to assure smooth operations for the tenants. Potent marketing entailed everything from newsletters, surveys, and coupon books to regular events aimed at drawing the target groups of customers.

Results

Footfall and revenues have continually increased since opening. Also, the center’s brand has been firmly and positively established within the local market. Most importantly, in 2013, when 95% of tenant leases (representing 75% of GLA) came up for renewal, AIG and White Star Partners were able to achieve a 93% retention rate at market rental levels.