Issue link: https://maltatoday.uberflip.com/i/576901
maltatoday, SUNDAY, 27 SEPTEMBER 2015 42 This Week Finding the perfect home for business Locating a home base that meets one's needs and expectations is a challenge, whether you are looking for a personal residence or to house a growing business. Hili Properties plc, a branch of the multi-disciplinary Hili Ventures, helps commercial entities find their perfect home, in Malta and overseas. What does Hili Properties do? Who are its main clients? Hili Properties plc owns and manages an extensive portfolio of commercial real estate for lease to diverse clients and tenants in Mal- ta, Estonia, Latvia, and Lithuania. Its portfolio includes dedicated business blocks, office space, re- tail centres and property housing McDonald's restaurants in all four countries, with a comprehensive footprint of 47,000 square metres. The McDonald's restaurants are operated by Premier Capital plc. Both Hili Properties and Pre- mier Capital plc are divisions of Hili Ventures, a multi-disciplinary group headquartered in Malta. Under its strategy to expand its footprint around Europe by iden- tifying opportunities in key cities around Europe, Hili Properties completed two major acquisitions this year. In January, Hili Properties ac- quired nine retail complexes in Latvia, adding a total 18,500 square metres of retail footprint to its international commercial portfolio. The total area of the nine properties is 27,000 square metres. Benefiting from strong demo- graphics, the retail centres oc- cupy footprints ranging from 950 square metres to 4,150 square metres and accommodate around 100 tenants between them. Most centres are 100 per cent occupied. The anchor tenants are supermar- kets and convenience stores of chains well known in the Baltics and Northern Europe. Additional retail activities like pharmacies and personal care shops, delicates- sens, banks and insurance brokers sit alongside the supermarkets us- ing separate entrances or within a shop-in-shop concept. In May Hili Properties finalised the acquisition of Tower Business Centre in Swatar. The business block accommodates six major tenants including legal, financial and professional services firms. It has a rentable area of 8,200 square metres, including the 3,700 square metre underground garage. Other real estate in Hili Proper- ties's portfolio includes Nineteen Twenty Three, the Hili Ventures head office in Marsa, a four-storey business centre with two floors of underground parking. The impos- ing building accommodates almost all of Hili Ventures' Malta-based companies. Hili Properties's also owns Trans- port House, a 300-year old Maltese palazzo with exquisite traditional features converted into offices space across four floors. Its McDonald's property includes the restaurant premises in Sliema, one in Estonia, four in Latvia, and two in Lithuania. Going forward, Hili Properties will continue to identify commer- cial real estate in Europe's devel- oping markets. Its aim is to en- hance portfolio value and service a greater number of tenants. Hili Properties operates in a number of countries. How would you say each market differs from the others? Are there any challenges specific to each territory? Hili Properties's portfolio is spread across various countries within the European Union that have all registered strong econom- ic growth, surpassing the Eurozone average over these last few years. The business is underpinned by its relationship with key anchor tenants, which guarantees con- sistent and long-term occupancy levels. This is a key factor in our business. Hili Properties' main tenants across all the markets in- clude many well-known brands that occupy properties for long- term lease. The property market in each territory is governed by different legislation so it is critical that the Management Team is conversant and compliant with such regula- tions at all times. Different climates also need to be taken into consid- eration when planning and ex- ecuting work. However, although there will be different cultures, there is something that is com- mon to all territories – the need to deliver an optimum and qual- ity service and maintain excellent relationship with all stakeholders. As such Hili Properties's in-house property management teams en- sures the consistent upkeep and maintenance of all its locations to keep them efficient for the benefit of tenants, and ultimately, well po- sitioned in the market. What sets Hili Properties apart in its field? Hili Properties operates a stable and sustainable growth model. It is not a developer and plans to em- bark on active asset management. It identifies properties for acquisi- tion with a view to invest in them further, to retain and attract qual- ity tenants. In this way, the proper- ties' value and position in the mar- ket is enhanced. The portfolio has been developed in such a way as to ensure the de- livery of strong, consistent yields and investments have been made to retain a high average yield. Hili Properties seeks to invest in ready and occupied properties which can yield returns with immediate effect. Hili Properties prides itself of the experience and expertise of its Board of Directors to enable it to implement its strategy. It forms part of Hili Ventures, a large and diversified group companies and benefits from the strength, stabil- ity, synergies and support that can only be gained from forming part of a larger scheme of operations. What can a tenant expect when approaching Hili Properties to accommodate their business? As a group, we have been doing business in Malta and the Baltic states for a good number of years, serving exigent tenants with ut- most efficiency. Hili Properties is able to leverage the reputation the business has earned in these markets to attract and retain ten- ants and maintain collaborative relationships with a range of stake- holders including banks, local au- thorities and suppliers. How has the sector changed over the years? Any predictions for its direction in the next 5 to 10 years? Hili Properties has already changed significantly since its in- ception in 2012. At that time, this division solely dealt with internal tenants, that is related party com- panies. In view of the opportuni- ties being identified in the local and foreign property markets it was decided to expand the busi- ness through investment in real estate for lease to third parties. The real estate market both lo- cally and overseas has registered sustainable and steady growth and is offering a number of opportu- nities for investors who have the appetite for the industry. Demand for well positioned, quality real es- tate serviced by a reputable prop- erty manager already exists and is expected to increase further. We are very positive on the direction of Hili Properties as a company and the overall real estate market in the short to medium term. Karl Naudi, Managing Director, Hili Properties plc Margrith Lustchg Emmenegger, Chairman, Hili Properties plc Tower Business Centre, Swatar, Malta Retail centre in Daugavpils, Latvia