Retail Portfolio Turnaround
01 October 2025 /Retail Portfolio Turnaround
Transaction Snapshot
UniCredit Leasing—legally distinct from UniCredit’s retail bank and focused solely on leasing—sought a resolution for a seven-asset portfolio of city-centre retail complexes located in Udine, Trieste, Grado, Lignano Sabbiadoro, Treviso and Venezia Friuli Giulia. Before 2019, Italian law did not allow securitisation of leasing debt, forcing lenders into cumbersome repossession routes. Although a new statute has since simplified restructurings, this portfolio still faced acute challenges:
Multiple disputes between borrower and bank over signed documentation.
Persistently low declared revenues with borrowers prioritising operating expenses and leaving creditors unpaid for several years.
UniCredit Leasing required a negotiated mechanism enabling borrowers to repay an agreed amount and release the bank from the position.
Our Mandate
Polymath & Boffin was tasked to:
Deliver a consensual exit in which borrowers could settle the bank’s exposure through an agreed procedure.
Stabilise income by repositioning each retail complex.
Create a platform that would support long-term viability for both borrowers and tenants.
Solution Architecture
Over the course of twelve months, Polymath & Boffin executed a building-by-building business plan:
Market re-underwriting. We contacted major brands and retail groups across the region, structuring a pooled rental offering available exclusively to a curated roster of retailers.
Destination branding. A shared brand identity was rolled out across all seven complexes, ensuring strong overlap of recognised retailers and a cohesive consumer proposition.
Tenant co-ownership. The resulting brand became co-owned by participating retailers, giving them a direct stake in the success of each location.
Capital access. With a diversified, financially robust tenant base in place, the borrower leveraged improved cash-flow security to raise new capital this during a period when retail assets were broadly out of favour.
Bank Workout. UniCredit Leasing accepted a negotiated reduction on headline exposure but avoided a protracted and costly foreclosure in a borrower–tenant related-party scenario.
Outcome & Benefits
Bank exit achieved. UniCredit Leasing was fully repaid and exited the portfolio within one year.
Debt restructured. Borrowers secured new financing aligned with sustainable rental streams.
Product remodelling. The retail offering was refreshed under a single destination brand, enhancing long-term resilience.
Why It Matters for Investors
Transparent income profile. A pooled, creditworthy tenant roster lowers vacancy risk and supports predictable cash flows.
Stakeholder alignment. Co-ownership by retailers incentivises on-site performance and upkeep.
Replicable playbook. The transaction demonstrates how disciplined branding and tenant aggregation can unlock financing solutions for challenged retail portfolios, even under leasing-law constraints.
By steering all parties toward a fact-based, brand-led restructuring, Polymath & Boffin transformed a distressed leasing situation into a stable, investible platform thus delivering clarity for lenders and fresh opportunity for asset owners.
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