Key elements of our strategy:
Our centres are dominant in their catchment area
We own and manage shopping centres that are perceived as leading within their respective markets in-house. This enables us to draw large numbers of consumers from their catchment area. Dominance strengthens our position in the relation with retailers, local authorities and consumers.
The management, letting and development is done in-house; ‘hands-on management’
Management, letting and development are performed in-house, in order to stay in close contact with the shopping centres, the retailers and the consumers in the catchment areas. This proximity, in turn, enhances Corio’s ability to react quickly and appropriately to changes, for example in consumer preferences. Local management and operating teams are closely involved in the operation of their shopping centre. Reviews of shopping centres’ operations are generally conducted every month on the basis of a number of key performance indicators. Each shopping centre’s competitiveness and ability to draw consumers in its catchment area is thus assessed regularly.
Our management model is decentralised: ‘local+’
We have a management approach we call ‘local+’ whereby local business units in each home market combine their local market knowledge in each of Corio’s home markets with central checks and balances, best practices and professional support expertise and financing from central headquarters.
Critical mass in each home market to support professional in-house management
Critical mass enables Corio to maintain and reinforce its position in its home markets. It makes Corio an attractive partner for retailers from outside Europe, and facilitates the expansion of retailers within Europe. Corio only enters a new home market if it sees potential to achieve that critical mass, based on the size and number of participants in the market.
In sourcing of (re)development activities
Corio is organizing the development activity in-house. This will give us a maximum grip on the quality of our products in all ways. Entering into the development activity will also enhance our performance growth without changing the risk profile of the company. Corio is willing to start developping a site once the land has been fully secured and zoning is in place. Construction costs are always capped to avoid the risk of budget overruns.
Optimising profitable growth through an active acquisition and disposal policy
Corio is pursuing an active policy on acquisitions and disposals, to support the portfolio’s quality and realise value on a continuous basis.
Exposure to emerging markets to reach a maximum of 20%
Corio’s portfolio is geographically diversified across regions in various stages of development of the retail (property) market. While stable mature markets and growth markets will continue to account for the bulk of the portfolio, Corio aims to grow progressively its share of emerging markets to up to 20% of total investments, with a maximum of 10% per region. This modal split is specifically chosen in pursuit of sustainable profitable growth and maintaining a sound risk return profile.
Effective risk management
Effective operational and financial risk management is underpinned by monthly key performance indicator reporting, monthly country CEO meetings and quarterly management and financial reporting by the different Business Units.
Corporate social responsibility (CSR) is incorporated in Corio’s decision making process
At Corio we are aware that our business activities have an impact on the economy, society and the environment. Therefore CSR is incorporated in Corio’s decision making process, into its daily operations as well as its investment and (re)development activities.
Source: Annual Report 2009, Chapter Overview & Strategy, page 27 (PDF, 13.679 kB)
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