Recognizes the commercial potential of the Island | Economy | elvocero.com
After identifying Puerto Rico as an ideal place for investment, developer Scott Wolstein, CEO of Developers Diversified PR, returned to the Island to invest $550 million in the acquisition of nine shopping centers.
Wolstein has a business history in Puerto Rico, since more than 15 years ago he owned the Plaza del Sol, Plaza del Norte, Plaza Río Hondo, Plaza Escorial, Plaza Isabela, Plaza del Atlántico, Plaza Cayey, Plaza Fajardo and Plaza Walmart, the same ones that it recently reacquired, since it believes that it is a good time to do real estate business on the Island.
He emphasized that Puerto Rico has a high level of consumption and has all the ingredients for success in real estate. He stressed that he favors the Island for its government, location and good tenants. “It is a good place to invest. People like to shop a lot and spend more than in the United States,” he noted.
Together with his father, Wolstein founded the original company Developers Diversified Realty in 1992 and in 2005 they expanded business to Puerto Rico, when he served as CEO of the shopping center company, now known as Site Centers.
“It is a good opportunity to return. I love the Island and the opportunity to come back because Puerto Rico is very successful in retail and we have a great portfolio of properties and work team. After Hurricane María and covid-19, the retail industry suffered a lot and now is the opportunity to recover,” said the executive.
“It is an honor to acquire the properties in Puerto Rico; In my opinion, they were the jewels in the crown of the portfolio in the company that my father and I created. My family and I are very proud to continue with the legacy of Developers Diversified”, added who sees a great potential for commercial development of shopping malls given the purchasing pattern of the Puerto Rican consumer.
Among the businessman's immediate plans is to expand the entertainment options in shopping centers, since it is a global trend where they seek to provide a wide variety of services to customers in one place.
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“It is important to have entertainment, particularly for children, while parents shop. Worldwide, it is about including more amenities in shopping centers, although the arrival of covid-19 made it more difficult when it had to close, reopen and reduce customer capacity. I think that after the pandemic, entertainment will be stronger,” Wolstein projected.
The businessman also plans to renovate the structures of the commercial properties to improve their appearance and service to tenants and visitors.
“We are going to make them more attractive, we have the capital for that. Repairs will be made such as painting, in addition to improving the parking areas and lighting. Whatever is needed to maintain a fresh image”, he highlighted without detailing the amount allocated to this investment.
The possibility of attracting new anchor stores is constant and real, since it ensures that there are always companies looking to arrive or expand on the Island.
“There are always talks to attract new stores and right now there is a great opportunity for that. It is a great moment, not only for our shopping centers, but also for our visitors, tenants, suppliers and employees”, he said about the shopping centers that have anchor stores such as Walmart, Sam's Club, Bed, Bath & Beyond, JCPenney, Best Buy, Caribbean Cinemas, The Home Depot, TJ Maxx, and Marshalls Mega Stores.
As part of the acquisition, Developers Diversified PR will retain all employees who worked with outgoing mall management.
“For the company it was very important to continue with the existing administrative team in order to give continuity to the operation and business plans. Also, what better team than the one that already knows shopping centers”, said Francis X. González, vice president of property management for Developers Diversified PR.
