"Gaelle" Commercial Real Estate

Client

SCI Gaelle & SCI Isakiro are two corporations specialising in the rental of commercial real estate in the French Overseas Territories.

Background

The two aforementioned companies contracted us as they had a strong desire to solidify their cashflows and returns as well as to optimise their credit control department as much as possible.

Approach

Moirai Associates Limited began by conducting a thorough analysis of the company's current operations, including its financial performance, property portfolio, and management structure. Several areas for improvement were identified, including:

1. Expanding the property portfolio: The company had a narrow focus on a specific type of commercial property, which limited their potential for growth. We recommended diversifying the portfolio to include a wider range of property types, such as retail, office, and industrial.
2. Improving property management: The company had a decentralised property management system, with each property having its own manager. This led to inconsistent management practices and a lack of efficiency. We recommended centralising the property management system under a single team, with clear protocols and processes in place.
3. Upgrading technology: The company was using outdated software and systems, which hindered their ability to effectively manage their properties. We recommended investing in modern technology, such as property management software and a CRM system, to improve efficiency and communication.
4. Revamping marketing efforts: The company had a limited marketing budget and was not effectively reaching potential tenants. We recommended increasing the marketing budget and using targeted marketing campaigns to attract new tenants.
5. Optimising financing: The company had a large amount of locked-in equity, which was preventing them from making necessary investments in the business. We recommended working with financial advisors to identify ways to release some of the equity and use it to fund growth initiatives.

Results

After implementing these changes, the commercial real estate company saw a 16.33% increase in rental income. They were also able to withdraw some of their locked-in equity, which allowed them to make necessary investments in the business. Overall, the modernization efforts led to a significant improvement in the company's financial performance and set them up for future growth.

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