We seek to satisfy unmet demand for shopping venues in urban centers in Argentina while striving to enhance the shopping experience of our tenants’ customers. In addition, we look to benefit from unsatisfied demand for premium office buildings in the City of Buenos Aires. We intend to achieve these objectives by implementing the following strategies:
- Selectively acquire and develop shopping malls. We seek to develop new shopping malls with different business formats in urban areas that are either densely populated or that display appealing growth prospects, including the Buenos Aires metropolitan area, some provincial cities in Argentina and possibly in certain locations abroad. An example is our acquisition in 2010 of the first shopping mall ever to operate in Argentina, Soleil Factory, which we converted into the first premium outlet mall in the country. In 2014, we developed the first premium outlet mall in the City of Buenos Aires, an open space mall in the Palermo neighborhood called Distrito Arcos. Our company was a pioneer in the premium outlet mall segment, which had not been exploited in the country while also diversifying its portfolio that targets different and evolving consumer styles and profiles. Both malls have been great successes in terms of sales and visitors. Our strategically located land reserves position us to develop new shopping malls in areas we believe enable our malls to target consumers with attractive demographics. Furthermore, we seek to selectively acquire shopping malls that we believe can benefit from our know-how, tenant relationships, centralized management and leasing strategies, thereby enabling us to enter new markets and generate synergies within our existing portfolio.
- Acquire and develop premium office buildings. After the economic crisis in Argentina in 2001 and 2002, investment in premium office buildings has been limited. As a result, we believe there is a significant unmet demand for such properties, mainly in the City of Buenos Aires. We look for a premium corporate tenant base and seek to purchase and develop premium office buildings in commercial districts that are strategically located in the City of Buenos Aires and other attractive locations as part of our strategy to become the leading property owner and manager of premium office buildings in Argentina.
- Continue to improve our properties. We consistently look for ways to improve our properties and make them more attractive for our tenants and their customers. For example, we have invested in the expansion of Alto Palermo Shopping and are re-styling the food courts at Alcorta Shopping and Patio Bullrich Shopping. In addition, we added technological improvements in our shopping malls such as automatic lights indicating parking space availability and automated parking payment in order to simplify and enhance the shopping experience of our tenants’ customers. We also continually look for ways to increase our lease renewal rates by collaborating with our tenants to improve the functionality of their leased space.
- Develop ancillary projects that complement our business. We seek to develop real estate projects that complement our shopping mall operations, both commercial and residential, taking advantage of the positive impact that our commercial developments generate on the value of the properties and taking advantage of the flow of clients for the projects we operate. As an example we can mention the case of the development of the offices in Polo Dot, which are located within the same complex as our Dot Baires shopping center, the land swaps carried out in Córdoba, Rosario and Abasto or the recent acquisitions of mixed-use properties in places of great potential such as La Plata (Buenos Aires) and Maltería Hudson.