A few days ago, the Patio Group – developer and operator of strip centers, office buildings and industrial facilities – gave an important signal and took measures aimed at its workers and their locals in the midst of the economic crisis arising from the pandemic.
Alvaro Jalaff, CEO of Grupo Patio, explained the reasons that led the holding company to take the pioneering measures to support nearly 500 commercial premises who were frozen to face the crisis.
“In a minute we said if we wanted to be spectators or wanted to contribute a grain of sand to the country and maybe make this gear, this engine that is the country work, and that grain of sand hopefully I can then move the rest of the engine and that collaborative way and among all we can take the country forward in these times of pandemic. This is a reflection and a statement of ours,” Jalaff says.
Among the measures raised is also the support so that SME clients can apply for credits amounting to up to $10 million at an interest rate of UF + 0%, without commission and with three months of grace.
“That was an initiative that cost a little more to put together because they are platforms that we try to make 100% digital, we are using as a FinTech that is called Credit, where we are guaranteeing the credits that this company delivers so that we can reach the zero rate. Obviously customers have to have good historical behavior with us and meet certain minimum requirements and that with that they have access to a maximum of 10 million pesos with three months of grace to be able to receive these credits. This week the nominations broke and we hope to be able to deliver as many of our SMEs as possible,” he says.
For the executive, support for SMEs is critical. “We were SMEs, this company was born as an SME and we know what it’s like to be there. That motivates us and makes us want to be able to support them strongly and make their way, because if we don’t go out together it’s going to be impossible,” he says.
Another important measure taken by the holding company, beyond the economic, is to provide legal and financial advice so that its SME clients can access the benefits and programs of the State. To this end, he added, the company formed a multidisciplinary advisory team composed of specialized professionals.
“Today we are making decisions that are complex every day and the truth is that every decision is often new or we don’t know why there is uncertainty and we don’t know what’s coming. Then in that part we have collaborated a lot with experts, where we have professional coaches, business experts, with case studies that help them, where we take more than 15 cases where it has been super enriching to see the process of these people and hopefully we can continue to have more and contribute to be able to improve, in addition to guiding them in the financial measures that the Government has made available” Says.
Government projection and action
The Patio Group gave another signal to companies by not taking advantage of the Employment Protection Act.
“The diversified business model of us, with asset classes, by geography, allows us to have open more than 75 – 80% of the leaseable square meters, allowing us a business model quite close to the economy. That allows us to sacrifice profits today, but to be able to keep all our equipment that is essential for the operation to work.
“This company has always tried to have a social, independent role that does business first, which is something we love and that our employees and our shareholders do well, but also trying to put that social role in our communities and places where we are.”
With regard to the future of the real estate and commercial industry, Jalaff believes that “the business of neighborhood shopping malls, anchored with supermarkets and shops of need, I would say that it is a very resilient business, also for e-commerce and the last mile is fundamental because that is where the Cornershop and Rappi, etc. are held. On that side it is a business that we see with a very positive perspective towards the future.”
Regarding trade in general, the executive raises a return to normalcy when there is a medical solution. “Human beings are an animal that returns to its channel. When the vaccine comes out, which we don’t know is going to be in a year, eight months or a year and a half, it’s going to be very likely that everything will return to virtually normal. Of course we are going to have significant technological advances and we will make progress in technologies that could have been made later and that will be done today, but that we are going to have a drastic change, I do not see it, at least in the commercial part,” he says.
Finally, the CEO of Grupo Patio looks with good eyes at the government measures taken so far. “The government has been very proactive and that has to be highlighted. We have to put ourselves on the stage that navigating a pandemic, whether it’s an SME or the President the Republic or a minister, everyone is going to have the difficulty of making decisions right now,” he says.
“I would say that the action taken with regard to the employment law, which is much needed for certain companies that need it and is a fundamental tool to be able to get out of this crisis, or the injection into the banks in order to take these Fogape credits is a very good step. But the issue is the descent and how we get it,” Jalaff says.
“Banks also have limits and do not have the ability many times to reach those who are not their customers and not all SMEs are banked, so there we need to keep taking a run, we have seen a couple of days that have gone around to be able to reach that liquidity and hopefully I can take care of ourselves in health, but at some point go seeing how all this is restored and to be able to go out afloat” Adds.
