Property conversion: Turning idle assets into a business venture

Property conversion: Turning idle assets into a business venture

June 6, 2016 (updated)

Many business and property owners have proven that having commercial properties – whether industrial, retail or office spaces – can be lucrative investments. One significant attribute is their potential to provide highly passive income, especially if these are strategically located prime properties.

Just as there are many property types, there are also ways for owners to earn profits with their properties. While selling off is a common option particularly for owners struggling to turn around an under-performing property, those who want to reap profits without losing ownership can take a new business route through an alternative franchising scheme from a world-renowned brand – the 7-Eleven Property Conversion model.

Under the Property Conversion franchising scheme, property and business owners who want to upscale and improve their earning potential through franchising can now become part of a successful convenience store chain system either through leasing or converting their existing business or property.

Potential partners not only gain the opportunity of adding value or earning potential to their existing properties – they get to upgrade their properties or businesses while still enjoying the profits and advantages that come with operating a franchise under the brand.

The store in M.H. Del Pilar St. in Malate, Manila.

According to Francis Medina, Business Development Division Manager of PSC, 7-Eleven’s Property Conversion Program
is a franchise model that offers business starters the opportunity to maximize the full potential of his or her business or store’s strategic location. This scheme is aimed at attracting existing business owners who already have their own businesses and properties but are interested in repurposing, leasing out or upgrading to a 7-Eleven business franchise.

“For instance, if you’re a grocery owner and you’re looking for a fresh start or a competitive edge that can help your business stand out from the crowd, opting for a 7-Eleven franchise under the property conversion scheme is an attractive and sensible option,” explained Medina.

“This franchising option offers suitable partners a simplistic and more affordable business format to re-brand as a 7-Eleven C-store franchise. It’s comparatively inexpensive because the property or business already exists, owners don’t need to shell out significant investment capital for rental fee or to build a new structure,” he stressed.

Since offering the scheme in 2007, 7-Eleven, through its exclusive local licensor Philippine Seven Corp. (PSC), now has 88 franchisees under the Property Conversion agreement.