Mailbox REIT, a regional commercial property company, has announced impressive rent collection rates from tenants at its mixed-use property in Birmingham. The company has successfully collected 91.9% of contractual rents for the September quarter, with office and car park payments reaching 100%. However, retail payments accounted for 79.6% of the total rent collection, while Food & Beverage payments stood at 64.9%. Mailbox expects the remaining 8.1% of rents to be paid by tenants who settle their rents monthly, bringing the total collection in line with June 2021 at over 98%.
This encouraging performance by Mailbox is a reflection of the overall strength of the UK property sector, which has shown consistent returns in rent collections since the beginning of the pandemic. While many of its competitors struggle to fill vacant retail spaces, Mailbox has adopted a different approach by converting its excess retail units into additional office space. The completion of this conversion is expected in early 2022.
Stephen Barter, the optimistic non-executive chairman of Mailbox, attributes the property’s increased valuation to a continuous improvement in market sentiment. The shopping mall, spanning 690,000 sq ft, is home to luxury brands such as Harvey Nichols, Calvin Klein, Paul Smith, and Gieves & Hawkes.
By repurposing its retail units into office space, Mailbox aims to take advantage of higher-value opportunities while adapting to changing market demands. This strategic move began in January and the company is optimistic about the expected completion by early next year.
Overall, Mailbox’s strong rent collection rates and strategic approach showcase its ability to navigate evolving market conditions and maximize the value of its property portfolio. With the conversion of excess retail units into offices, the company is well-positioned to attract tenants and optimize the utilization of its space in an ever-changing retail landscape.
Useful Links:
1. Mailbox REIT Official Website
2. Real Estate Investment Trust (REIT) Definition
