The recent acquisition of the Mall of Cyprus and Mall of Engomi by the European division of South African commercial, retail and residential property giant Atterbury Group has injected a great deal of confidence into the local fashion retail industry, significantly elevating its future prospects in the eyes of international investors.
Raoul de Villiers, Managing Director of Atterbury Europe Services, sat down with Gold during a brief, two-day visit to the island to divulge the Group’s plans for the Malls, its evaluation of the country’s retail potential and the Atterbury strategy for possible further operations in Cyprus.
What was the impetus behind Atterbury Europe’s significant investment in Cyprus, manifested in its acquisition of the Mall of Cyprus and Mall of Engomi from the Shacolas Group?
Atterbury Europe has invested in these two key retail assets, both with expansion potential, to facilitate the growth strategies of international retail brands in Cyprus, which represents a good opportunity for growth in our view, post the March 2013 agreement with the European Central Bank and IMF addressing the banking crisis in Cyprus. The country has performed ahead of expectations at each review date, interest rates have dropped by 1% and, there is renewed optimism about a political solution to reunite the island, thereby creating additional investment opportunities. It is also a market that remains untapped by other international property development businesses. Unlike Greece, Cyprus has already been through its austerity measures, and taken a haircut to repay its debt; its economy is now growing. Atterbury Europe was able to make strategic investments at the bottom of the market – we started investigating this deal just after the agreement between the local authorities and international lenders, when we felt that the turning point for the country’s economy had already been reached – resulting in an excellent opportunity for upside benefit. Since that time, everything from the political situation to the financial status of Cyprus has improved exponentially.
Both Malls were set for expansion prior to your agreement with the Shacolas Group. Will Atterbury Europe proceed with these plans?
Indeed, we have already begun strategizing how to best expand both locations – which is the reason for my visit to the island – in response to retail and consumer demand. The Mall of Cyprus expansion is currently being initiated; what we want to do is significantly enhance the experience it offers the 5 million consumers who visit the development each year. We will do this by developing the food court experience and increasing consumers’ linger time there, as well as by improving the outside integration. We also see The Mall of Engomi as an extremely successful retail centre and, as it is located in a densely populated residential area, it has plenty of expansion and revitalisation potential. With over 1.5 million visitors each year, expansion is planned in the near future.
