The Power Centre Co-Location Thesis is the site-selection discipline that underlies Woodfine Management Corp.'s definition of a Qualified Investment. Development Sites must be co-located on or immediately adjacent to existing Power Centres — retail nodes anchored by major National Retailers operating their established store Prototypes. Co-location with a Power Centre anchor is a non-negotiable criterion for site qualification; development is not adapted to sites that do not meet this standard.

The Anchor Relationship

A Power Centre is a large-format retail node anchored by one or more National Retailers operating at institutional scale. National Retailers of this category — including large-format grocery operators, home improvement operators, and membership warehouse operators — deploy their store locations according to predetermined Rollout Programs: internally validated site criteria, construction schedules, and franchisee or corporate commitments that operate with the efficiency of industrial supply chains.

The presence of an operating National Retailer anchor at or adjacent to a development site communicates several things simultaneously. It confirms the geography meets the retailer's internal threshold for consumer demand, traffic, and operational viability — a validation the retailer has performed through its own site analysis and committed capital to through its construction investment. It confirms the infrastructure serving the site — road access, utilities, zoning — meets commercial real estate standards. And it provides the anchor-tenant covenant environment in which commercial office and professional leaseholders seek to locate their Regional Market operations.

For the Direct-Hold Solutions, this confirmation is not supplementary due diligence. It is the primary criterion for site qualification. If a development site does not co-locate with an operating Power Centre anchor, the site does not qualify for a Qualified Investment.

Alignment with National Retailer Rollout Programs

The Power Centre co-location strategy is anchored to the established Rollout Programs and construction velocity of National Retailers rather than to macroeconomic GDP projections for the geography. This is a deliberate design choice that distinguishes the Direct-Hold Solutions' Growth Strategy from conventional speculative commercial development.

National Retailers operate according to internally validated store growth programs that span multi-year horizons and commit construction resources to specific geographies on predetermined schedules. A major National Retailer confirming a regional store initiative is not a prediction of demand — it is a commitment of capital to a geography that the retailer has validated through its own proprietary analysis. Co-locating Woodfine development with that commitment replaces speculative geographic selection with alignment to a proven institutional decision already made.

The growth velocity of the Direct-Hold Solutions is therefore anchored to the same geographic expansion logic that the National Retailers themselves apply, without requiring Woodfine to duplicate the retailers' market research or to take speculative positions on consumer demand in unvalidated geographies.

Why Co-Location and Not Adjacent Development Alone

A common question in the site-selection context is whether proximity to a Power Centre anchor is sufficient, or whether the development must be physically co-located on the same site. Woodfine's development standard requires co-location: the Woodfine Buildings and the Power Centre anchor must share or be directly contiguous to the same Development Site.

Physical co-location delivers shared infrastructure economics — parking, utilities, site access, and municipal approvals — that proximity alone does not. A Woodfine Professional Centres development on a directly contiguous site benefits from the infrastructure investment the Power Centre anchor has already made. A development that is merely adjacent but not co-located bears the full cost of independent infrastructure and does not access the pedestrian and vehicle traffic patterns that the anchor generates during its operating hours.

Campus Design — the requirement that all Woodfine Buildings on a single Development Site conform to a unified site organization — requires sufficient land to accommodate the Prototype combinations on a single parcel. If a development site does not accommodate the required Prototype combinations within a Campus Design, the land does not qualify for purchase. Woodfine Buildings are not redesigned to fit a site; sites are selected because they can accommodate the Prototype.

The Growth Strategy Mechanics

The Growth Strategy implemented by the Direct-Hold Solutions uses National Retailer Rollout Programs as the geographic template for deployment sequencing. National Retailers with active expansion programs publish or announce store-opening commitments on timelines that allow developers to identify, option, and execute site development in advance of or concurrent with the retailer's own site preparation.

A major home improvement retailer recently confirmed a program to build or remodel a significant number of stores across North America. Programs of this scale and duration create a predictable pipeline of co-location opportunities in Regional Markets that would otherwise not be visible to institutional capital without access to the retailer's internal expansion intelligence. Woodfine's development network in Regional Markets provides that access through existing relationships with the National Retailers' site development functions.

Scope of Qualified Jurisdictions

The Power Centre co-location requirement applies consistently across all four qualified jurisdictions: Canada, the United States, Spain, and Mexico. Power Centre formats vary by jurisdiction — North American Power Centres are typically large-format, surface-parked retail nodes; European and Latin American equivalents may involve different site configurations — but the underlying principle is identical: co-location with an operating National Retailer anchor whose store commitment validates the geography.

Site selection in each jurisdiction identifies development sites meeting the co-location criterion within the target geography. Where a jurisdiction's land-use or zoning framework creates restrictions on the specific configuration of co-located development — as may apply in urban infill contexts in Spain or mixed-use commercial zones in Mexico — the Prototype is applied to the extent compatible with those constraints. Sites that cannot accommodate the Prototype within local regulatory requirements do not qualify.

The consistency of the co-location criterion across jurisdictions supports the Self-Similar Governance model that Woodfine applies to its four Direct-Hold Solutions: the same investment thesis, the same site-selection discipline, and the same governance structure, applied through jurisdiction-specific legal vehicles that are designed to be functionally equivalent.