Soho Mall set to survive life support
By Margot Thomas
SOHO Mall surrounded by of banking towers was opened with an expensive flourish reflecting its tiara of high-end stores and restaurants and a five-star hotel that were to have turned Panama’s Calle 50 into a shopping magnet for the well-heeled
The initial prognostications of owner Abul Waked, head of a conglomerate representing many famous brands seemed to be backed by favorable trade winds, bringing thousands flocking to view Panama’s new shopping jewel and attend packed promotional event until a hurricane struck in the form of the US Treasury announcement that the Waked’ family empire had been placed on the Clinton list because of alleged money laundering activities and links to drug cartels.
US citizens and businesses were prohibited from dealing with the conglomerate and it was forced to dispose of retail jewels like Felix B. Maduro, and airport duty-free outlets across the region and of course Soho, which owed banks some $300 million.
The banks took over the assets and sought a buyer, but with two-thirds of the stores closed and Panama hotel occupancy rates plummeting, buyers were not rushing to the doors. A Year ago the three-tower complex was bought by a tripartite Mexican alliance. Nivada, Grupo Caabsa and Citelis and hopes are high that the mall will once again become more than an echo chamber for the footsteps of a trickle of moviegoers heading o the cinema complex;
According to a La Prensa report, although the hotel vacancy rate has dropped to 46% and other retail businesses struggle to deal with large inventories and lower sales as city construction slows the Mexican triumvirate is moving to breath new life into the project including the office tower, the mall, and a hotel
Clara Ferro, the new manager of the commercial operation who headed the Andean shopping center in Bogotá, told La Prensa that next year “we will have the property consolidated.” with the closing of three important contracts – the future operator of the hotel, another with the entity that will occupy the North Tower, currently under construction, and with those who would finish occupying the South Tower currently home to Banistmo.
But finding tenants for the mall is a major challenge with only 49 of 120 stores occupied, and last week a man walked unheeded through the desolate, center and robbed the Mercurio jewelry store of 17 Rolex watches with a before-tax starting price of over $8000 each – not a good security signal for prospective tenants.
Meanwhile, while the mall owners want to maintain a luxury brand niche, at the end of the year Collins is planning to become the retail department store anchor for the mall and has signed a 20-year contract to occupy more than 6,000 square meters.
