Q: What was the thought process behind transforming Unity Plaza into a one stop shop for all IT needs?

A: Prior to the acquisition, our research indicated that Unity Plaza was a widely recognised name across the country for all IT needs. The purchase occurred during the pandemic, which forced us into a digital transformation. Anticipating substantial sectoral growth and a yearly forecasted sectoral growth rate of 26 percent, we strategically considered how to effectively capitalise on this, and ensure fairness for tenants and stakeholders.

To optimise space usage, we sacrificed rentable space, creating voids by cutting a cove in the building and installing escalators to enhance flow. Recognising the importance of efficient vertical movement, we aimed to position essential shops on higher floors and window-shopping opportunities on lower floors.

We recognised the positive impact of clustering in global shopping centres and aimed to convert Unity Plaza into a one stop shop. To enhance the overall offering, we’ve planned to install an auditorium catering to retailers, brands and higher end business process outsourcing (BPO) services. The addition of a food space is aimed at boosting collaboration and idea exchanges.

On’ally also envisions providing affordable office spaces for startups with equity for entrepreneurs in the IT space. Leveraging Unity Plaza’s recognition, we’re committed to transforming it into a comprehensive one stop shop that goes beyond retail.

Q: The company declared a total dividend of Rs. 2.70 a share for shareholders – its largest payout. What factors were considered in this decision?

A: Recognising the potential of this asset, our approach has been strategic. The management’s welfare took precedence, involving not only dividends but also adjustments in salaries, targeted training to address skill gaps and the certification of maintenance staff.

Attention was equally given to tenant needs and concerns, and ensuring footfall prior to any dividend payout. Stakeholders – particularly shareholders – became a focal point of our practices, involving the establishment of a robust governing board.

Originally, the plan was to distribute 40-50 percent of annual earnings, retaining 50 percent for business reinvestment. However, at the request of major stakeholders including the Urban Development Authority (UDA) as the second largest shareholder, it was increased to 60 percent.

Our vision is to complete the ongoing project, building on over 40 years of operations since 1983. As a single asset owning entity, we’ve accumulated management skills and potential reserves, positioning the company for substantial growth.

Q: The IT industry is rapidly growing, and contributes to economies and business activities. How should Sri Lanka capitalise on this?

A: We’ve made strides but I believe that comprehensive digitalisation of our economy is imperative to prevent us from falling behind. Key institutions like the Inland Revenue Department (IRD) and Sri Lanka Customs need to embrace digitalisation, aligning with global practices.

Implementing digitalisation in the legal system including courts will significantly enhance efficiency and save time. Demonstrating this digital shift is vital to attracting investment.

India has already adopted tap and pay systems including in its banking sector – a testimony to the growth potential in this area. Embracing digitalisation in banking, including in know your customer (KYC) processes and financial transactions, can lead to a substantial boost in revenue generation.

The IT industry holds significant promise in driving these developments and I’m optimistic about potential advancements in this regard.

Q: What measures have you taken to support tenants?

A: On’ally maintains flexibility in lease agreements, prioritising a symbiotic landlord-tenant relationship. Additionally, we’ve experienced a remarkable 300 percent increase in footfall, indicating substantial growth potential for tenants.

To enhance the tenant experience, a dedicated app enables shops to report issues in common areas and we’re committed to addressing them within 24 hours through the support of a maintenance team.

Full WiFi connectivity is also provided to every store, facilitated by two service providers. This ensures a robust broadband connection for shops and allows customers to easily access WiFi throughout the complex. The initiative aims to support businesses in becoming IT hubs.

Furthermore, Unity Plaza – which was previously closed on Sundays – has undergone improvements to adapt to changing consumer needs and is open all seven days of the week.

We also implemented the SAP ERP (enterprise resource planning) system to streamline operations, urging tenants to collaborate in revamping efforts.

The latest details, including payment schedules and deposits and invoicing, are automated within the system. To incentivise a smooth transition, we offered benefits such as discounts for cash or cheque transactions.

As part of our digital transformation, social media apps have been created while the Unity Plaza website has been revamped, enabling tenants to showcase and promote their products, further enhancing their visibility and engagement with customers.

Q: What’s the long-term vision and what does the future hold for On’ally Holdings?

A: We aim to successfully complete this project and comprehensively validate our model. Subsequently, we’ll leverage in-house skills to explore similar niches.

Our strength lies in the science behind retail clustering. This approach is pivotal in enhancing services for tenants and improving bottom line performance.

Our vision extends beyond a single building of this nature. To facilitate sustained growth, we’ll explore opportunities in similar areas while steadfastly maintaining a niche focus rather than adopting a generic approach.

– Compiled by Tamara Rebeira

Telephone: 2501622 | Email: info@unityplaza.lk | Website: unityplaza.lk