CASE STUDY - Broad Street Mall, Reading

Appointed by Doughty Hanson (DHRE) to undertake both the property and asset management of the 320,000 sq ft Broad Street Mall shopping centre, John Tinley provided strategic advise to help devise and implement an asset management plan that would deliver returns in excess of 20% for this opportunity fund.

The centre was built in the 1970s and was traditionally poorly perceived by letting agents and retailers. In addition, the lease expiry profile represented a serious risk to the income security.

The asset management plan was successfully implemented and included:

- a £6m refurbishment of the malls and common parts
- new retailers and brands were attracted to the centre
- a new marketing strategy was devised and implemented
- a PPM was instigated and incorporated into new service charge budgets
- the service charge, which had been allocated on a very unconventional basis, was successfully reapportioned and agreed with the tenants

Doughty Hanson subsequently sold the scheme and their target returns were exceeded.