DIRECT FACTORY OUTLETS

DFO Canberra was heavily affected by a range of issues impacting the retail sector including deep discounting in traditional retail stores and online competition, as well as competitive centres close by in a small market. Most leases were due to expire within 18 months and tenants were difficult to attract.

The Receivers:

• Undertook a review of the centre and its performance, including dialogue with all tenants to secure occupancy;
• Appointed new retail managers to oversee a process of business consolidation and improvement;
• Appointed sales agents to undertake a marketing campaign;
• Oversaw a sale of debt and transition to a new lender;
• Worked with asset managers to undertake major centre works as part of a re-positioning of the Centre including significant new tenants;
• Initiated a further sales campaign resulting in a significant return to the Lender.