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.