Sigma Retail Partners’ primary objective is to add value to our Capital Partner's assets through rigorous and effective asset management.
The key principles which underpin Sigma Retail Partners’ company ethos are based on an approach that is
We source assets which are specifically tailored to our Capital Partner’s appetite for risk, investment timeline horizon, debt vs equity requirements and target IRR expectations. Our Capital Partners typically consist of three key categories:
- Private Equity investors seeking minimum 15% IRR and 1.5 times equity invested over a 5 year hold period.
- Family Offices seeking double digit returns over 5-7 year hold ,50-60% LTV
Bringing the best team together and creating a collaborative approach is key to the success of any significant retail asset. The Directors of Sigma Retail Partners have unparalleled experience in working collaboratively with investors, retailers, banks, developers and their respective professional teams.
We work closely with multi disciplinary professions including solicitors, accountants, agents, property managers, quantity surveyors, engineers, architects and planning consultants to ensure that we collectively deliver the best possible result for our clients.
We have an unrivalled track record of working productively with hundreds of international, national and local retailers and their advisors. We recognise that the traditional, often adversarial landlord and tenant relationship needs to undergo a significant change in Ireland in the best interests of our client’s assets.
Strong asset managers are leaders and must make a variety of important decisions every day in the interests of adding value to the assets within our portfolio. Timely decision making is critical, especially due to the ongoing dramatic change in the operation of so many significant retail assets.
Poor or slow decision making can result in a loss of confidence from a retailer or shoppers’ perspective, which will inevitably result in detrimental consequences for retail assets.
We draw from our vast asset management experience to ensure that timely and appropriate decisions are made in order to protect and enhance the value.
Sigma Retail Partners respects the importance of discretion and confidentiality. The Managing Director, Marcus Wren, understands this better than most especially given his previous key role with The National Asset Management Agency (NAMA).
From the outset we create and agree a bespoke strategic plan for each asset, which dovetails with our individual Capital Partner’s specific objectives. This plan is the roadmap for future key decisions and is regularly monitored and refined in order to ensure the best possible outcome for our clients.
Retail assets are by far the most complex and challenging of all asset classes. Shopping centres, retail parks and town centres need to evolve and improve in response to consumer trends continually. Behavioural patterns and the increasing influence of mobile technology has changed the way we shop. The role of the physical shop within this environment is still important.
Sigma Retail Partners recognises this evolving landscape. Our unrivalled experience in the retail property market ensures that the assets we manage remain relevant to retailers and consumers and perform to their maximum potential relative to their location, size and catchment.
Covid 19 Government restrictions affected some retailers more than others – with the restriction relative to the product sold and the type of property traded from. Some retailers were able to react quickly to alternative ways to sell products whereas others had to create new platforms. We found that retailers with an omni channel platform in place were able to engage and retain customers in a more effective manner. Data shows that the pandemic did not affect all retailers equally, with some thriving while others who had been struggling pre pandemic failing.
With retail environments forced to close, all retailers requested assistance. The Sigma team approached each retailer request relative to the impact to their business, requesting that retailers provide financial data and turnover information. Through this analysis we could analyse and advise on the extent of assistance warranted. It has also allowed the collation of additional data in understanding retailer performance. In addressing retailer requests for assistance we have agreed lease regears (removal of break options, extending of lease length), removal of exclusivities, settlement of rent reviews, introduction of turnover clauses. This delivered extended WAULT to the Sigma portfolio. We also agreed for the inclusion of Green Agenda clauses in leases allowing our clients to deliver on environmentally enhancing measures.
We have recently played a key role in the refinancing of three major loan portfolios whilst in the middle of the Covid 19 pandemic. Our team provided direct engagement with the bank and their agents, demonstrating a hands on approach to all arrears outstanding, the delivery of regears which added value to the portfolio, robust asset reports including strong collection stats for rents & service charge, information on the assets performance to include footfall, trading, catchment data etc. This allowed the client to secure new financing terms for these portfolios.