Last month, QIC Global Real Estate announced the signing of an agreement to form joint ventures to recapitalize and invest in a portfolio of eight of Forest City Enterprises’ regional malls located across the U.S. valued at more than $2 billion. QIC is Australia’s third-largest institutional investment manager, with more than $70 billion in funds under management. The London Group Realty Advisors was retained as a vital member of the transaction due diligence team, providing advisory services related to market analysis for each of the centers.
Specific elements of the assignment included trade area definition, analysis of market area demographics and psychographics, estimation and projection of current and future expenditures by major retail category, assessment of the competitive landscape, evaluation of each center’s merchandising characteristics, calculation of market share achieved, and forecasting of property sales. The engagement also required evaluation of each center’s current market positioning, potentially-achievable rents, and the opportunities and risks in order to identify any long-term viability concerns associated with acquisition or redevelopment of any of the properties.
The engagement came with a requirement for a remarkably short turnaround – six weeks from commencement to delivery of the final reports – and QIC was extremely pleased with the final product. Thomas Pasquesi, Vice President USA Investments for QIC noted: “Today’s announcement would definitely NOT have been possible without the efforts of you and your team…THANK YOU!!” Bill Speer, LGRA’s retail Principal, directed the London Group’s activities associated with this important due diligence assignment.