New consultancy launched to aid retail property owners

Outlet centre asset manager Realm and investment manager Eccleston Capital have launched a new consultancy, Total Turnover Solutions. The new business is aiming to help UK retail property owners embrace more “revenue-responsive” leasing structures by leveraging Realm’s expertise in using turnover data in its asset management services and Eccleston Capital’s knowledge to restructure assets which could then enable an exit for the owners. The firm said it was already in discussions with a number of retail property owners. TTS director Colin Brooks said: “We are aiming to work with landlords and investors who want to implement a revenue-responsive approach that meets the requirements of occupiers and also creates assets with sustainable value. “We are seeing a rapidly growing number of landlords introduce turnover-oriented leasing models, but this is a very difficult strategy to implement unless you can collect the right data and know how to use it. Without that, a turnover-oriented strategy is just heading into a black hole.” Mark Phillipson, Eccleston Capital founder and former head of UK retail group at Colliers International, added: “Beyond the outlet centre sector, there have been very few retail leases where the rent is substantially driven by turnover – it has generally just been a potential income top-up for landlords. But genuine turnover-based leases are exactly what are now needed throughout the sector.”   To send feedback, e-mail louise.dransfield@egi.co.uk or tweet @DransfieldL or @estatesgazette