Long-term Investments in shopping malls viola-funding July 5, 2023

Long-term Investments in shopping malls

long-term investments for shopping malls
long-term investments for shopping malls

Long-term investments for shopping malls usually reach several tens of millions of dollars, while the cost of the largest shopping malls in the world today passes an incredible mark of 1 billion dollars.

This is a huge amount of money, which in the vast majority of cases requires businesses to use borrowed capital, including long-term investment loans.

If you are looking for funding sources for the construction of shopping centers in the USA, Great Britain, Germany, France, US, Italy, Poland, Canada, Brazil, Saudi Arabia, China, India, Japan or other developed countries, please contact Viola funding Limited.

Viola Funding Limited is ready to offer a long-term investment solution for your shopping mall project and long-term project finance schemes.

Investments in shopping malls; The basics

Shopping centers are business models where a wide variety of retailers converge to leverage their businesses, with department stores, supermarkets and specialty stores participating as anchor tenants being the most prominent.

In recent years, these properties have generally become the preferred destinations for multi-brand global retail chains and franchised units.

In general, commercial investment projects can be classified into Regional Malls, Lifestyle Centers, Fashion Malls, Community Centers, Outlets, mixed-use facilities and other types.

This typology shows that the mall is not a unique phenomenon, but a modality that has reinvented itself over several decades through marketing innovations and the re-adaptation of architecture, scale and design in line with the emergence of new market niches in urban areas.

Shopping malls as an attractive investment

Long-term Investments shopping malls and commercial real estate is the acquisition of a specific real estate object or residential investment instruments for the purpose of making a profit.

In order to implement a large infrastructure project in the commercial real estate sector, it is necessary to develop technical and financial documentation, conduct engineering studies, develop an order for the construction of buildings and structures, conclude contracts for the relevant works, and so on. When implementing an investment project, engineering companies, operators and other institutions that provide services in engineering research, design, construction and management of a shopping center can act as project executors.

Considering the high cost of modern shopping center projects, an important feature of investing in commercial real estate is a high share of borrowed funds. Financing using internal financial resources is rare in this area. Financing the construction of shopping centers through loan capital is more related to specific forms of financing (long-term investment loans), which require specific financial engineering solutions, collateral and insurance. Such solutions may have a complex structure consisting of several loans of different levels.

The leverage effect applies not only to companies, but also to all capital-intensive projects they carry out, including investments in shopping centers. Any decisions related to the structure of real estate investments should be made in such a way as to ensure the lowest weighted average cost of capital.

Global investments in shopping malls

International experts believe that by 2028 the turnover of shopping centers can reach US$8,000 billion. Shopping malls are reclaiming their role in retail amid the gradual easing or lifting of pandemic restrictions, which is a positive signal for investors. Supply chains are also recovering, which, together with the resumption of tourism and shopping tours, has become a powerful driver of market growth in the last year.

The key players in this market are such world famous companies as Walmart, Schwarz Group (Lidl and Kaufland), Walgreens, Costco Wholesale and a number of other large players. The concept of a modern shopping center is based on providing a wide range of goods and services under one roof, so retail giants combine food, household appliances, clothing, furniture, pharmaceutical products, as well as catering and entertainment of all kinds.

Surveys in the European Union show that most businessmen today are aware of the obsolescence of the current concept of shopping centers. In particular, the organizational concept and technological approach to investment projects of this type are partially outdated and do not meet the requirements of the modern retail market.

The global largest shopping malls till date

The list of the largest shopping centers demonstrates that a modern retail facility can be a truly large-scale and capital-intensive facility that requires significant investment.

Golden Resource Mall: Golden Resources Mall (Jin Yuan) with a total area of over 550,000 square meters is located in Beijing. The facility was opened in 2004 in an urbanized area of the Chinese capital with an eye on the growing middle class. The mall attracts more than a hundred thousand daily visitors who use the local shops, skating rink, gym, cinema and other entertainment.

IOI City Mall: The huge shopping center with a total area of over 800 thousand square meters ranks first in Southeast Asia in terms of area available for rent.

Viola Funding Limited provides a long-term loans for the construction of commercial real estate, including long-term investments for shopping malls, arranges project finance schemes, and also offers financial engineering and financial modeling services for large projects around the world.

eMAIL:[email protected]
Website:https://viola-funding.com/

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