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management of retail developments over the past 20 years, I am
PROPERTY PROFILE - McARTHUR RETAIL DEVELOPMENT SPECIALISTS particularly excited to expand our retail leasing capacity within
the MENA region and service our clients more effectively to
maximise their income potential.”
As the topic of conversation moves onto effective strategies in
maximising foot traffic and tenant satisfaction, Mahalingam explains
that footfall is not solely the most important factor, the conversions
and densities that their retailers are making in the respective store
located within the asset also come into play. He continues by saying
that they must focus on creating destinations that are meaningful
to their customers from the moment they arrive in the mall to the
time that they leave and that today, F&B is key to having guests
come more often and stay longer. Entertainment is also vital to
provide additional reasons for the customer to visit.
1 As a key driver for growth at McARTHUR, what innovations
in retail development and leasing does the COO think will
become the new standard in the industry over the next decade?
“Firstly, new technologies will impact how we study our markets;
design our malls and how people will shop. Secondly, we will
continue to see more non-retail real estate added to strong shopping
centre sites that will result in a more mixed-use proposition. Thirdly,
we will continue to see changes in shop formats. For years the
department store was the darling of the industry, today it has been
replaced by fast fashion giants like Zara, H&M and Uniqlo.”
For the final part of the interview, we speak with Chetan
Kothari, CFO of the business and begin by asking about the
financial trends being seen after the instability of the last few years.
Creating Next-Level Destinations key financial trends as it emerges from the pandemic. Driven by
“The Middle East retail real estate industry is seeing several

economic recovery and government stimulus packages, demand
McARTHUR Retail Development Specialists is a company that provides comprehensive advisory, retail for retail spaces in the region is increasing, particularly in high-
planning and leasing services to owners of retail developments across the globe. Here, we speak with Phil 2 growth markets like Saudi Arabia and the UAE.”
Kothari goes onto say that retail developments must focus
McArthur, Founder & Chairman, Vythnathan Mahalingam, COO and Chetan Kothari, CFO to learn more on cost efficiency in the early stages by implementing smart
about the business and how they continue to push the boundaries in retail destinations around the world. building technologies and energy-saving initiatives, for instance
using automated systems for lighting, HVAC and maintenance
can reduce utility and operational costs. It is these savings on
operational expenses that can free up capital for reinvestment
in future phases and upgrades, creating a balance between
manging immediate costs and sustaining profitability long-term.
So what financial indicators or metrics does the CFO prioritise
when evaluating the potential success of a new retail or mixed-
use development project?
“When evaluating the potential success of a new retail or
Phil McArthur Vythnathan Mahalingam Chetan Kothari mixed-use development project, several key financial indicators
Founder & Chairman COO CFO and metrics are tracked, such as net present value (NPV), internal
3 rate of return (IRR) or return on investment (ROI) to name just
McARTHUR Retail Development Specialists (MRDS) assists Today the business is currently working on over a dozen Main picture: a few. For retail and mixed-use developments, achieving a high
developers and retailers across a variety of stages, from concept active projects across the MENA region. These include The Point, leasing and managing leading properties and understanding that occupancy rate is crucial to maintaining steady cash flow. Early
Abha KSA
design to assessing new properties, to providing solutions for masterplanned communities such as Jeddah Central, Masar in 1. Crest at each scheme requires its own unique merchandise mix. pre-leasing agreements – especially with anchor tenants – can
Muscat Hills,
developments that are under-performing and require in-depth Makkah and Reem North in Abu Dhabi to the repositioning of Oman So what areas would he focus on when revitalising under- provide financial security, signalling demand and mitigating vacancy
analysis and solutions. The firm’s comprehensive services include mega malls like Granada Mall in Riyadh or Mall of Dhahran in the 2. Aljada, performing malls? risk. Finally, monitoring the cost per square foot (both in terms of
Sharjah, UAE
competition analysis, demand and supply research analysis, site Kingdom of Saudi Arabia. Phil comments that the company is 3. Mall of Qatar, “Firstly, we look for a fresh competitive position for the asset construction and operational expenses) is essential for keeping
Doha Qatar
analysis, retail real estate management, marketing and leasing also fortunate to provide strategic advisory services to amazing through renovation, adding anchor stores, F&B destinations and the project within budget. This metric helps in pricing retail spaces
services and other vital turnaround solutions. projects like the Hann Reserve luxury resort in the Philippines. other attractions. Secondly, we suggest design improvement competitively and benchmarking against marked norms.”
The first individual at MRDS we had the opportunity to speak “When we speak with developers of retail destinations, the for each mall that may improve circulation issues and thirdly we As our time with the team nears its end, Phil comments that
with was Phil McArthur, Founder & Chairman of MRDS, who has first thing we want to understand is their catchment area and provide advice on operating and marketing improvements that over the past 20 years we have seen tremendous sophistication
over 40 years of experience in the retail development industry. the retail potential of the area. Analysing and agreeing to the will help get the retail project back in the limelight.” in the planning, design, merchandising and operating of retail
McArthur began by explaining that the need for curated and competitive position of the new mall or centre is of critical We next turn our attention to the recently appointed COO destinations globally.
well-planned retail destinations has never been greater. When importance. Developing the correct balance between everyday Vythnathan Mahalingam who opens by saying that with the “Today we can visit shopping centres on every continent
discussing global market trends, McArthur acknowledges that convenience shopping, comparison brands such as fashion and wide variety of projects that they are currently assisting, there except Antarctica and witness stunning placemaking, beautiful
while e-commerce has taken a percentage of market share away leisure and dining is both an art and a science.” is clearly a need for well researched pragmatic strategies for architecture and wonderful retail brands and F&B services. The
from physical retail stores, the majority of retail consumption Phil firmly believes the science is in the market analysis and designing, leasing and operating first-class properties. shopping centre industry is truly a global phenomenon.”
still occurs within physical retail shops. business plan and the art comes from the team’s experience in “Given my hands on experience in leasing and asset www.mcarthur-specialists.com

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