ACROSS: LET’S TAKE A LOOK AT SONAE SIERRA’S PORTFOLIO UNDER MANAGEMENT: IN YOUR OPINION, WHAT IS THE MOST EXCITING PROJECT AT THE MOMENT?
CRISTINA SANTOS: Regarding Sierra’s portfolio under management, we are at a pivotal point, with several innovative projects that showcase our diversification into new asset types, including mixed-use developments, offices, and residential areas, while continuing to strengthen our expertise in retail.
In 2024, we expanded our portfolio with the addition of 400 logistics, retail, and residential properties through the creation of an investment vehicle to manage CTT’s assets. Additionally, we manage all assets from the investment vehicles created, which focus on commercial investments across Portugal, Spain, and Germany.
Right now, we are particularly excited about the upcoming opening of the River Deck at Centro Vasco da Gama, scheduled for the end of October 2024. This 9 million Euro project will introduce a unique gastronomic experience, featuring 15 new dining spaces, including an outdoor area with stunning views of the Tagus River.
ACROSS: HOW BIG IS YOUR PORTFOLIO RIGHT NOW?
SANTOS: Today, our portfolio comprises 650 assets under management, spanning a gross leasable area (GLA) of 2.6 million sq m and accommodating around 6,400 tenants. In Portugal, we have added several mixed-use projects to our portfolio under management, including Campo Novo, Atrium Saldanha, Saldanha Residence, and Península Boutique Center, where we oversee both the management and leasing of the commercial spaces. We also continue to revitalize and enhance existing assets, as demonstrated by the recent case of Forum Barreiro, where our management and leasing efforts resulted in a 23% increase in the occupancy rate within the first year. Most recently, we have assumed management of Ria Shopping in Olhão, where we are currently enhancing the asset’s offering and developing a decarbonization roadmap.
On the international front, Prishtina Mall in Kosovo, the largest shopping center in Southeastern Europe, which opened in March 2023, has continued its successful trajectory through an active management and leasing strategy. Additionally, in Italy, we are proud of the leasing activity developed in Chorus Life Bergamo, an innovative urban regeneration project that envisions a model of the “city of the future”.
ACROSS: WHAT GEOGRAPHICAL DIFFERENCES CAN GENERALLY BE FOUND IN YOUR PORTFOLIO UNDER MANAGEMENT?
SANTOS: Sierra’s portfolio is strategically diversified across multiple geographies, each with its unique characteristics and needs. We take great care in adapting our approach to the specific cultural and market realities of each region, ensuring that our strategies are aligned locally while leveraging our international expertise. Whether we are managing retail spaces, food markets, offices, or mixed-use developments, our aim is to create value that reflects the heritage and context of the communities we serve.
Across all markets, we are seeing that retail has remained a resilient and thriving sector. In fact, sales in the countries in which we operate have recovered beyond pre-COVID-19 levels. That underscores not only the strength of the retail sector but also the success of our tailored management strategies, which adapt to local market dynamics while maximizing value for investors and tenants.
ACROSS: WHAT BRANDS, CONCEPTS, AND INDUSTRIES ARE CURRENTLY CONQUERING CENTERS AND NEW MARKETS?
SANTOS: We are witnessing a significant transformation in the retail sector, driven by the need to provide more than just a shopping experience. Brands are increasingly looking to offer holistic solutions that engage consumers in new ways, and we are responding by creating spaces that integrate work, leisure, and retail. This shift is reflected in the rise of coworking concepts, integrated technological solutions, and an omnichannel approach, all designed to enhance the customer experience and cater to the demands of a digitally connected audience.
At Sierra, we are responding to this evolution by creating mixed-use spaces that go beyond retail, fostering community and engagement. For example, we’ve introduced innovative concepts, like the first padel court event at Nova Arcada in Portugal, and cultural initiatives, such as “A Arte Chegou ao Colombo” in Lisbon, which featured the “Carry Me” art exhibition. Such events illustrate how shopping centers have evolved into cultural and social hubs, far beyond their traditional roles.
Additionally, our focus on younger generations has led us to create unique experiences tailored to their interests. At ParkLake Shopping Center in Romania, we hosted the Youth Nations League U21 3×3 Basketball tournament, while at Alexa in Berlin, we organized an event for the skateboarding community. Those kinds of initiatives strengthen the connection between the centers and the communities they serve, positioning our spaces as places of interaction and social engagement.
ACROSS: SONAE SIERRA PROVIDES PROPERTY MANAGEMENT SERVICES AND ASSET MANAGEMENT FOR BOTH ITS OWN AND THIRD-PARTY INVESTORS. WHAT DO THOSE SERVICES LOOK LIKE?
SANTOS: As managers of our own assets, we have a clear understanding of what investors seek and the value we need to create for them. That insight is the cornerstone of our approach to managing third-party assets. At Sierra, we apply the same principles across all assets under our management, ensuring the delivery of tailored services that focus on long-term value creation for both owners and investors.
Our 360-degree approach to property management encompasses everything from tenant selection and daily operational oversight to the implementation of innovative value-creation strategies. No matter the type of asset we manage – whether it is retail, office, or mixed-use developments – we operate with the same level of commitment and expertise, ensuring that each property is managed as if it were our own. This holistic model allows us to balance the needs of owners, tenants, and visitors, delivering consistent and high-quality results across a wide variety of asset types.
ACROSS: WHERE DO YOU SEE THE BIGGEST NEED REGARDING PROPERTY MANAGEMENT AND CONSULTING SERVICES? IS THAT A GROWING BUSINESS FIELD FOR SONAE SIERRA?
SANTOS: The greatest need in property management today is adaptability – being able to respond quickly to the rapidly changing needs of both consumers and the real estate market. At Sierra, we focus on delivering flexible, tailormade solutions that meet the specific requirements of each client, always with a clear focus on value creation.
The digital transformation is a major driving force behind this shift. Modern spaces must integrate more than just retail; they need to seamlessly combine services, leisure, and technology to enhance the overall customer experience. Additionally, sustainability is no longer optional; it is a fundamental expectation. Our clients increasingly rely on us to provide energy-efficient and resource-optimized solutions that align with their sustainability goals.
In a world in which change happens rapidly, it is essential to anticipate and recognize these shifts, incorporating them into our property management strategies. By keeping assets updated and efficiently managed, we ensure they remain competitive in evolving markets.
As these trends continue to grow, we are seeing a significant increase in the demand for our property management and consultancy services. Our ability to anticipate market needs and to provide flexible, high-value solutions, positions Sonae Sierra as a key player in this field.
ACROSS: WHERE DO YOU SEE CURRENT AND FUTURE GROWTH POTENTIAL WITHIN THE RETAIL REAL ESTATE INDUSTRY?
SANTOS: The key area of growth in the retail real estate sector lies in the revitalization of existing retail-centric properties. As consumer habits evolve and urban spaces develop, retail properties must adapt in order to remain relevant and competitive. The future is about transforming these centers into spaces that go beyond traditional shopping, integrating complementary solutions.
At Sonae Sierra, we see tremendous potential in revamping real estate retail-centric properties to meet the demands of modern ways of living. That not only involves upgrading the physical infrastructure but also enhancing the overall experience, while incorporating sustainability and operational efficiency. As cities evolve, retail plays a crucial role in creating vibrant urban centers in which people can connect and interact.
Cristina Santos
Cristina Santos is the Executive Director Property Management at Sonae Sierra
