JANUARY 2012
mapic
www.mapic.com The official MAPIC magazine
®
r e V i e W NEW MARKETS
THE LEISURE PRINCIPLE
Also inside:
China, India, Brazil and more
Big schemes highlight leisure
This year’s event welcomed a host of new markets to Cannes, with major emerging nations promoting opportunities
Major developers showcased more leisure and food and beverage offers within their schemes at MAPIC
SEE PAGE 7
SEE PAGE 11
• Travel retail projects highlighted • Retail in the City summit • MORE at MAPIC • Interviews from Cannes • Designer outlets • MAPIC Awards • Conferences
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COntents i nEWs
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All the latest news from MAPIC 2011, including a special focus on leisure in retail schemes, travel retail and the growth of designer outlets, plus the MORE Pavilion and the Retail in the City summit.
i intervieWs
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i mapicawards
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We asked 12 key participants from this year’s event to reflect on the challenges for 2012 and the big issues they will be grappling with next year.
A gala night saw three retailers, two developers and a prominent Italian retailer recognised for their achievements at the prestigious MAPIC Awards 2011.
MAPIC 2011 once again offered up three days of meetings, conferences, workshops, networking and deal making as over 8,000 retail property professionals descended on Cannes.
MAPIC KEY FIGURES
8,035 participants 682 exhibiting companies 2,302 retailers 840 investors 116 local authorities 63 countries
mapic reVieW The official MAPIC magazine January 2012 ®
Director of Publications Paul Zilk. EDITORIAL DEPARTMENT Editor in Chief Mark Faithfull Technical Editor in Chief Herve Traisnel Deputy Technical Editor in Chief Frederic Beauseigneur Graphic Designer Carole Peres Sub Editor Sally Nash Proof Reader Debbie Lincoln Contributors Nadia Bainbridge, Brian Baker, Eugene Gerden, Anika Michalowska, Graham Parker, John Ryan. PRODUCTION DEPARTMENT Publishing Director Martin Screpel Publishing Product Manager Chealsy Choquette Publishing Co-ordinators Emilie Lambert, Amrane Lamiri Printer Riccobono Imprimeurs, Le Muy (France). Published by Reed MIDEM, BP 572, 11 rue du Colonel Pierre Avia, 75726 Paris Cedex 15, France. Contents © 2011, Reed MIDEM Market Publications. Publication registered 4th quarter 2011. ISSN 2109-0890. Printed on 100% recycled paper.
www.mapic.com I magazine I January 2012 I 3
mapic steering committee The Steering Committee members who helped shape MAPIC 2011
Mr Chris Igwe Head of Retail CBRE “What has become very clear in my mind is that for the international retail community and those looking at global business, MAPIC is and remains the place to be. Despite the competitiveness of the market and the difficult trading conditions, the numbers attending still went up this year and those companies participating sent their senior executives and decision makers, which added to the quality of meetings. That’s a testament both to the importance and uniqueness of the event and also to the resilience of the retail sector. The event’s location in Cannes also helps to create a ‘village feel’ to the three days, which again is quite unique to MAPIC. And that sense of place and belonging that it brings to the retail real estate community seems particularly appropriate given that it is just such a feel that we are trying to create for shoppers in our retail environments.”
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Mr Peter Wilhelm
Mr Andrew Watson
CEO WILHELM & CO
International Director LASALLE INVESTMENT
Mr Stefano Stroppiana
Mr Christian Dubois
Retail Real Estate Developer STEFANO STROPPIANA
Managing Director CUSHMAN & WAKEFIELD
Mr Jean-Paul Fréret Real Estate & Development Director VIVARTE GROUP
Mr James Napoli
Mr Alain Boutigny
Mr Pierre Combet
Vice-President Real Estate/Properties URBAN HAYMAN JV, LLC
Editor-in-Chief SITES COMMERCIAUX
CEO RETAILP
Mr Robert de Barr
Mr Henrie W.Kötter
Mr Jorge Sanchez
Retail Property Consultant DE BARR ASSOCIATES LTD
Managing Director CENTER MANAGEMENT ECE
Leasing Corporate Director NEINVER SA
Mr Clem Constantine
magazine I January 2012 I www.mapic.com
Director Of Property MARKS & SPENCER PLC
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S T R AT E G I C C O M M U N I C AT I O N S
nEWs CONTENTS PAGE 7 India pushes ahead on FDI decision
PAGE 8 Big show for designer outlets
MAPIC 2011
THE MARKET
Polarisation will continue across European markets
PAGE 10 Transport schemes
PAGE 11 Leisure’s role stands out
The ongoing divergence in market conditions and the appeal of entering new territories was again underlined at MAPIC
PAGE 12
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New markets debut at MAPIC
PAGE 13 City Summit and MORE Pavilion
PAGE 14 Interviews: What the key players said
Mixed picture: Growth prospects vary across Europe
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magazine I January 2012 I www.mapic.com
ONES LANG LASALLE’s head of retail research for EMEA, James Brown, summed up the mood of the market in his MAPIC keynote address on the final morning. “We’re currently seeing deterioration in retailer and consumer confidence,” he said. “But there are important regional variations — Germany and the Nordics are still much stronger. And Central and Eastern Europe can expect strong retail sales growth while the ‘Club Med’ countries are facing declines.” However, Brown warned against writing the southern European markets off totally. “There are still some pockets of real strength in local markets,” he said. Jones Lang LaSalle’s research has identified Poland, Russia and, increasingly, Turkey as enduring hotspots with “strong retail sales growth and strong fundamentals.” And significantly these are the only markets that still have an active development pipeline of new retail space although elsewhere Brown said there was “little new supply and little likelihood of that changing in the near future.” Another trend identified by Brown was the growing polarisation in both the occupational and capital markets, with retailers and investors both focusing on prime locations to the detriment of secondary and tertiary markets. “We’re seeing healthy rental growth in prime locations in many markets,” noted Brown. Given the economic backdrop, it is perhaps surprising that retailer activity remains as strong as it does. “Retailers are still expanding, and looking to enter new markets to capitalise on growth,” concluded Brown. In a separate session Neville Moss, head of EMEA retail research at CBRE, admitted that confidence levels had polarised since June, with slightly more retailers looking to open 40 or more stores next year compared with the summer, while slightly more also planned to open less than five stores. “Although the prospect for consumer spending growth in Italy is modest, there is a clear opportunity to expand into a market that is under-represented in terms of international brands and where a considerable amount of new retail development is taking place,” said Moss. “Germany’s relatively strong economy continues to attract new retailers, while Russia has moved up from sixth position to third on the back of a strong economy and the prospect of further growth in consumer spending.” Spain (second) and France (fifth) made up the remainder of CBRE’s top five.
i neWs: GLOBAL MARKET
Growth and internationalisation for MAPIC
Turkish opportunity starts with Ankara Developers and retailers should bring in their international experience as Turkey expands rapidly according to Ankara’s Chamber of Commerce
NEWS IN BRIEF
CANNES CALLING ASIA MAPIC hosted a live link with MIPIM Asia, running concurrently in Hong Kong, to highlight the opportunities for European retailers in Asia. Carmine Rotondaro, worldwide real estate director of French retail giant PPR, counselled retailers not to ignore India just because of the scale of China. “India’s a very ‘festive’ society,” he said. “It’s big on public events and private celebrations like weddings, and that means we’re seeing huge demand for eveningwear.”
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HE ANKARA Chamber of Commerce (ACoC) took a large stand at MAPIC and brought senior local and national politicians to Cannes in a move to promote the city and to “share our vision” said ACoC president Salih Bezi. Bezi emphasised the potential of the Turkish market and said: “Turkey is very dynamic, it is growing very fast, the population is very young and these factors are very important for the retail market.” As a developer himself, in his new role with the Chamber of Commerce Bezi said that it was important for international companies to develop strong relationships with brokers and developers in order to realise the potential of Ankara and its municipalities. Mayors from a number of the municipalities
MAPIC links live with MIPIM Asia were in Cannes, while the stand was also visited by Government Minister Ali Babacan. “I was behind the first modern mall in Ankara over 20 years ago,” reflected Bezi. “It is very important that we attract the right businesses to continue to develop in the right direction and to promote Ankara and the opportunities within Turkey.”
INDIA PAVILION
India approves FDI reforms for retail LONG-AWAITED reforms to foreign direct investment (FDI) were given the green light a week after MAPIC welcomed an expanded India Pavilion to Cannes. India intends to open the country’s retail industry to foreign supermarkets, a cabinet minister confirmed in the week following MAPIC, although the much delayed reform, designed to tap the potential of the market, was subsequently delayed in parliament yet again. The government wants to allow 51% FDI in the multi-brand retail sector, Food Minister KV Thomas said. It has also decided to raise
the cap on foreign investment in single-brand retailing to 100% from 51%, Thomas added. If the decision is pushed through it will be cheered by global retail giants and developers, which have been calling for liberalisation of retail ownership for the last decade. This year’s MAPIC featured its largest India Pavilion to date, with exhibitors including Bentel Associates, Everstone Capital Advisors, Inorbit Malls, Pioneer Property, Prestige Estates, Prozone Enterprises and The Xander Group. In addition, Anuttam Developers had its own stand and agent Jones Lang LaSalle had its Indian representatives at the fair.
MSHREIB CELEBRATES QATARI CULTURE THE REGENERATION of downtown Doha is the first urban renewal programme in the region aside from Beirut said Mshreib marketing director Omar Saudi. “The project aims to reflect the rich architecture and heritage of the area,” said Saudi. Eschewing modernity, the project will feature over 100 LEED-certified buildings and will be completed in phases from Q4 2012 to 2016, including over 300 stores and 70 food and beverage units.
JAPANESE CULTURE FOR EUROPE A LIFESTYLE-based store bringing together traditional products, tea, sushi and calligraphy was presented at MAPIC by Machizukuri Company Sheep Network. “We envisage it as a store representing Japanese culture, able to be set up in a number of European and global cities,” said director Saigo Mariko. The company was in Cannes to look for partners to roll out stores.
Saigo Mariko: European city roll-out www.mapic.com I magazine I January 2012 I 7
i neWs: DESIGNER OUTLET
New discount formats launched NEWS IN BRIEF
ONE FASHION DEBUT ONE FASHION Outlet, Slovakia’s first designer outlet, announced four new signings at MAPIC. Jelly Belly will make its Slovakian debut, plus Puma, Max Mara’s plus-size fashion brand, Marina Rinaldi, and Alpine Pro. All will open in phase one of the €75m scheme. Rioja Developments director Robin Raban-Williams added: “We’re hoping to start construction in February and we have just launched a new website to promote leasing.”
LDO signs fashion brands to Wembley scheme Developer Quintain has signed Gap and Nike as the first anchor tenants for the London Designer Outlet (LDO) at Wembley City
VILLAGGIO SET TO OPEN IN 2012 CONSTRUCTION is well under way on the 10,100 sq m first phase of Villaggio, the latest outlet mall at Parndorf in Austria. Zwerenz & Krause and APM Holding will open the scheme in spring 2012. Once the second phase of 5,400 sq m is completed in 2013, Villaggio will have around 60 stores, and 75% of the first phase is pre-let, with a strong emphasis on fashion. LDO: New signings for London’s first designer outlet
KEY LOCATION FOR DUISBURG OUTLET DUISBURG Outlet Village was formally launched at MAPIC by city mayor Oberburgermeister Sauerland, who stressed local political support for the scheme. German Development Group and Freeport Retail plan opening for October 2013, providing 19,000 sq m GLA, comprising 95 outlets. Further phases will bring this to 31,000 sq m. Freeport CEO Iestyn Roberts added: “This is a key location for a designer outlet — people will be talking about the scheme for years to come.”
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NTERNATIONAL sports fashion brand Nike has taken an 855 sq m unit on the ground floor of the outlet mall facing Wembley Stadium, while global fashion brand Gap has signed for a 765 sq m sq unit on the centre’s first floor. London’s first purpose-built designer outlet and the only one within the M25 orbital motorway, the 35ha landmark regeneration project is transforming the land surrounding Wembley Stadium and Arena. On completion in 2013, it will comprise up to 85 retail units, 15 new restaurants, cafes and coffee shops as well as a nine-screen Cineworld.
Duisburg enjoys local political support
NAILLOUX OPENS ONE WEEK AFTER MAPIC NAILLOUX Fashion Village — the only factory outlet village in the greater south region of France, located 20 minutes from Toulouse — opened the week after MAPIC. This ‘new generation’ factory outlet is backed by Advantail, with Corio as principal financial partner.
Nailloux: Packed opening day 8I
magazine I January 2012 I www.mapic.com
DESIGNED by architect Haskoll, the 16,000 sq m Copenhagen Designer Outlets is only the second such scheme in Denmark and sits alongside the established City 2 shopping centre on the outskirts of Copenhagen. The project, due for completion in March 2013, will be created within the shell of a former hypermarket to house around 80 stores. It is estimated that Copenhagen Designer Outlets will attract some 1.5 million visitors in the first year. UK-based Ream International is the development, management and leasing consultant on the project. Managing director Steve Armitage said: “The tenant mix will comprise high quality international and Scandinavian brands, carefully chosen to create the optimum shopping experience.”
Phil Cottingham, managing director of retail at Quintain, said: “This marks the start of a new phase in the leasing of the scheme. These deals follow the successful fi rst phase for the food and beverage area and we secured lettings to top names including Pizza Express, Prezzo, Frankie & Benny’s, Handmade Burger Co and Jimmy Spices. This is key to creating a day out, lifestyle, entertainment and retail destination.” Cottingham added: “With further deals in solicitors hands, 40% of the scheme is let or in advanced stages of negotiation and we are still two years ahead of opening.”
i neWs: DESIGNER OUTLET
New discount formats launched
NEWS IN BRIEF
The West promises ‘next generation’ Paris scheme DESIGNER outlet The West, situated to the west of Paris and less than 10km from the Chateau de Versailles, adjacent to a large retail park with over 100 major retailers, is promising a “new generation” outlet experience. Advantail CEO Franck Verschelle said at MAPIC that the scheme is “very modern and design-oriented, with a look and feel that is deliberately a stage on from current designer outlets.”
WASHOP, launched last year by Didier Zeugschmitt, was back at MAPIC to promote its specialist car wash offer intended for large retailers and shopping centres. Washop is based on a high performance concept, with
CHINA OUTLET SHOWS GUANGZHOU SCHEME
Representing a €100m investment, The West has planned a host of customer services, including a preferred customer reception, tourism tax refunds, while-you-wait tailoring and electric shuttles around the Plaisir shopping complex. Outdoor walkways are protected from the elements by glass canopies and a heat recovery system will provide store heating, while photovoltaic panels will make it an ‘energy positive building’.
‘next generation’ equipment, a good value offer that uses only biodegradable products and recycles and reuses all waste water. “Over the next 10 years we plan to open 10 stations per year,” said Zeugschmitt.
CHINA (Outlet) Ltd was at MAPIC showcasing 21 schemes currently under development across the country and highlighting its upcoming site, situated just an hour from Guangzhou. “It is a destination,” said director of corporate development Teky Cheng. “Over 100,000 sq m of outlet space and 384 shops will be included along with luxury residential, a theme park, food and beverage and golf courses. So it is much more than simply a designer outlet.” The scheme is targeting in-bound tourists and aims to play to Chinese consumers’ love of brands and value, offering a mix of international and domestic brands. The next centre to open after Guangzhou will be near Beijing in the middle of 2012, followed by Shanghai at the end of the year. “We have seven or eight schemes in construction and we are looking to promote the outlet concept in China, delivered to European standards,” said Cheng. Cheng: Delivering to European standards
15-16-17 November 2011 • Convention & Exhibition Centre, Hong Kong
MIPIM Asia reaches the next level Hong Kong, November 17, 2011 1,913 senior real estate executives, retailers, government officials and city administrators from 41 countries wrapped up business discussions in Hong Kong November 17, as the three-day MIPIM Asia 2011 concluded. Summing up the mood at Asia Pacific’s leading real estate gathering, Justin Chiu, Executive Director, Cheung Kong (Holdings) Limited (Hong Kong SAR), said “MIPIM Asia has come of age this year.” With attendance up by some 10.8% compared to 2010, MIPIM Asia welcomed its first Malaysian Pavilion, an expanded Hong Kong Pavilion, numerous new stands from developers from the region, and first-time presence from numerous retail brands, such as LVMH, Apple, Hugo Boss, Abercrombie, and several others. For the first time MIPIM Asia announced a dedicated retail programme, comprising focused conferences and networking events, which we plan to reinforce for next years edition. This goes to explain the 40% increase in retailers at this years event,
with over 100 retailers present. “In its sixth edition, MIPIM Asia has confirmed that it is the international event for major real estate companies operating within the region or seeking to work internationally with Asia Pacific players,” commented MIPIM Asia Director Filippo Rean. “The presence of retailers is something new at MIPIM Asia and reflects Asia Pacific’s potential for retailers and the attractiveness of retail real estate compared to certain other property assets.” Underlining Asia Pacific’s growing importance on the international market, French Urban Affairs Minister, Maurice Leroy, attended MIPIM Asia to promote the vast Greater Paris project which includes a €20 billion, 150-kilometre driverless subway system around the French capital. The project also plans for 70,000 houses to be built per year for the next decade. Work is expected to start on Great Paris in 2012. November 17 saw Carrie Lam, Secretary for Development of the HKSAR Government,
MIPIM Asia will be back at the Hong Kong Convention and Exhibition Centre in 2012. To stay connected with MIPIM Asia, visit www.mipimasia.com
hosting a Hong Kong-themed lunch for over 60 leading real estate executives attending MIPIM Asia. During the Secretary for Development’s presentation, she outlined plans to increase office supply in Hong Kong so as to sustain the city’s economic growth in the foreseeable future. Meanwhile Taiwan’s Council for Economic Planning and Development Minister, Christina Y. Liu, heading a 60-strong Taiwanese delegation, told MIPIM Asia attendees about 35 projects representing a total investment of US$36.7 billion. The developments include an international economic zone, a new trade centre in Kaohsiung City and a major hotel complex in Kinmen County. The Minister commented that increased tourism between China and MIPIM Asia 2011 Taiwan has led KEY FIGURES to a significant 1,913 unique participants growth in hotel 42 countries investment op860 companies 114 exhibiting companies portunities. 102 retailers 349 investors, end users & hotel groups 162 journalists
www.mapic.com I magazine I January 2012 I 9
i neWs: TRAVEL RETAILING
Transport retail schemes take centre stage
PKP and HB Reavis showcase Warsaw Zachodnia Station Warsaw: Rail meets retail
PKP AND HB Reavis showcased the Warsaw Zachodnia Station and office complex at MAPIC this year. The scheme will create a new railway station, due to open at the end of 2014, and a mixed-use centre of retail, office and residential buildings. Entrance to the station will be possible both from a subway and from the street, where bus and tram stops are located. PKP is also working with private investors in Katowice and Poznan and Paweł Olczyk, member of the management board at PKP said that great opportunities exist to combine transport hubs and commercial space. Stanislav Fmka, executive director of HB Reavis in Poland, said the investment in Warsaw will occur in stages, with the creation of the train station by the end of 2014, followed by the office buildings by 2017 at an estimated €110 million.
Munich in line as Montblanc expands travel stores
TRIGRANIT PUSHES AHEAD WITH POZNAN PROJECT TRIGRANIT received the green light to begin construction on its €160m investment at Poznan, Poland, which will include a railway station and a shopping centre. The first part of the investment, the railway station, will be finished in May 2012, in time for the Euro football tournament. The entire integrated transport centre will be ready in the second half of 2013. The 5,500 sq m railway station will continue to be called Poznan Głowny, while the 60,000 sq m new shopping centre will include 230 tenants and will be called Poznan Głowny City Center.
PKP will contribute four hectares of land in the city’s downtown and Bose International, in co-operation with local Poznan firm Pentagram Architects, has designed the plans. The Hungarian majority-owned TriGranit is a fully integrated real estate investment, development and management company. With operations in seven countries in the CEE, with a large portfolio of assets and a pipeline of over €4bn of major mixed-use developments.
Montblanc: Penning new airport deals LUXURY pen specialist Montblanc has unveiled details of its travel retail store opening programme, with boutiques scheduled to begin trading across Europe. In its home market of Germany, a new store in Hamburg Airport’s Plaza area opened for business in November, and a new boutique is to begin trading in 2012 at Frankfurt Airport Terminal A+. 10 I
Montblanc also plans a new 50 sq m boutique in Terminal 2 of exhibitor Munich Airport at the end of 2011, while in Berlin a new boutique is slated to open in the new airport during Q1/Q2 of 2012. Elsewhere in Europe, a new 50 sq m boutique will begin trading in December 2011 in London Heathrow T1, while at Moscow Sheremetyevo, a shop-in-shop recently opened.
magazine I January 2012 I www.mapic.com
Poznan (above) will be open for the Euros, while leasing director Aleksander Kowalski outlined Polish opportunities
i neWs: LEISURE IN RETAIL
Role of leisure now key for development
Trinity Leeds to highlight food and cinema The increasing role of leisure within retail schemes was emphasised at MAPIC, where major developers insisted that leisure was taking centre stage
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NE OF THE KEY themes to come out of MAPIC 2011 was the crucial role of leisure within new schemes, with a number of the big developers insisting that the proportion of leisure within their newer projects has become far higher than in their older projects. The message was underlined by the backers of Spanish mega-project Puerto Venecia, Zaragoza, which is to be replicated in a new scheme in Valencia; by Hammerson with the asset management work it has done at the Bullring and its upcoming scheme in Marseilles; and by Land Securities with Trinity Leeds. International restaurant operator D&D London is to open its first UK restaurant outside London at Land Securities’ Trinity Leeds scheme with two bespoke restaurants, totalling over 1,000 sq m. Land Securities revealed at MAPIC that the average number of leisure, food and beverage
Integrated approach: Trinity Leeds
units has increased substantially in its developments over the last 10 years. Ashley Blake, Land Securities director of retail portfolio management, said: “We have seen a steady growth across catering. This has been mirrored by a big increase in consumer and investor interest in the catering and the leisure industry, and we have responded with over 350 leisure and catering units.” The Leeds scheme also includes an Everyman cinema and Andrew Dudley, development director, reflected: “Everyman is very community-oriented and is a vital part of Trinity integrating with the city of Leeds.” Marketing director Claire Reynolds added: “We have been running a Facebook campaign with Everyman called ‘2.8 Days Later’ to get students to storyboard and shoot a fi lm in 2.8 days. There will be a viewing for the finalists at the centre and the winner will have their short film shown as a trailer at all the Everyman cinemas.”
NEWS IN BRIEF BOWLING ATTRACTIONS SHOWCASED AT MAPIC QUBICAAMF Worldwide was showcasing its bowling and amusement attractions at MAPIC. The US-based company has sales offices in 15 countries and has installed more than 10,000 new bowling centres in over 90 countries.
Bowled over: Leisure offer at MAPIC
NICE ARENA COMBINES
FOOTBALL AND RETAIL CANNES neighbour Nice was represented with Vinci Construction’s Nice Eco Stadium, led by VINCI Concessions, which has been appointed to hold a 30-year partnership agreement for the future stage of the Nice Stadium. The 35,000seat stadium and the National Museum of Sport will be joined by nearly 29,000 sq m of retail operated by a joint venture between Vinci Immobilier and Vinci Construction France.
Nice: Football meets retail
Spain combines retail and leisure Spanish mega-scheme Puerto Venecia will open in Zaragoza late next year with over 21,000 sq m of leisure incorporated into the 206,000 sq m site, which includes a shopping mall, big box retail and a retail park. Anchor stores include El Corte Ingles, Hipercor, Decathlon, Primark, Zara and Desigual, plus a 4,300 sq m Cinesa cinema. The scheme also includes a sailing lake, ice rink for the winter, a multi-purpose sports area, major leisure sites and 6,600 sq m of food and beverage outlets, while the site will include a climbing wall, zip-line, rowing boats, a
standing wave and rope courses. Eurofund Investments, a joint venture between British Land and Orion Capital Managers, has opted to create a multi-purpose destination aimed at attracting families for a full day out. Eurofunds investor Ian Stanford said that in his view future developments would have to mix “lots of activities, which means people will say ‘let’s go to Puerto Venecia and decide what we do once we get there’.” He added: “It’s not just about being big, you need lots of different leisure and it needs to be in the right environment, not simply inside a big box.”
CAPITAMALLS featured two principal projects on its stand: the integrated civic, cultural and retail scheme at Vista Exchange, Singapore (above) and Raffles City, Chengdu, a landmark mixed-use development in Chengdu. Corporate marketing manager Esther Ee said: “A lot of our focus is on China, where we now have 55 schemes, and in India where we have nine ongoing projects, two of which are open.”
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i neWs: GLOBAL MARKET
Investment pushes ahead across EMEA NEWS IN BRIEF
ICSC SCRUTINISES SERVICE CHARGES THE INTERNATIONAL Council of Shopping Centers has launched its first survey of shopping centre service charges across Europe. Levels can be as high as 25% of rent in southern Europe, although the European average is 10-15%. “For 20 years it’s been a hidden issue but now it’s out in the open,” said DTZ chairman of retail Martyn Chase. “Retailers will be entitled to ask why.” He pointed out that with energy costs as much as 12.5% of the running costs of a shopping centre, the research will provide a new stimulus for greater efficiency.
EXPERIAN DATA NOTES FOOTFALL DIFFERENCES EXPERIAN Footfall’s latest data on pedestrian traffic shows a wide divergence in performance across Europe, with Portugal seeing a decline of 8.8%, with Experian’s commentary warning: “Forecasts for the Portuguese economy would indicate further caution among consumers and potentially fewer visits to shopping centres.” Germany, by contrast, saw traffic growing by 1% year-on-year.
VISITORS AND RETAILERS UP AT MAPIC With over 8,000 delegates from 62 countries in Cannes, MAPIC attendance rose by 9% compared with 2010. Over 300 retail companies attended MAPIC for the first time, pushing the number of retailers in Cannes to 2,300 delegates, 12% up on 2010. The total number of companies in Cannes reached 3,350, 14% more than last year.
Visitors and retailers were both up on 2010
MOROCCO MALL OPENS ITS DOORS MAPIC exhibitor Morocco Mall opened its doors in Casablanca the first week of December, offering 350 stores including Christian Dior, Louis Vuitton, Fendi, Ralph Lauren, Gucci, Mango, Zara, H&M, Prada, Guess, Lacoste, and Gap. The huge mall also features 40 restaurants, a musical fountain and an enormous cylindrical fish basin containing more than a million litres of water. 12 I
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Blackstone launches Polish retail fund at MAPIC US private equity group Blackstone launched King’s Street Retail at MAPIC, a fund investing in Polish retail assets
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HE NEW platform has been seeded with a portfolio of three high-quality shopping centres and will target “welllocated Polish shopping malls with a mix of diversified tenants, generating high footfall and exhibiting further growth potential”. Blackstone will be responsible for asset management and the investment firm has mandated Master Management Group to provide transaction advisory services, property management,
as well as leasing services for the properties. Paul Heller, principal at Blackstone, added: “With positive underlying economic fundamentals, Blackstone sees further growth potential in the Polish retail market.” King’s Street Retail currently includes three malls with over 130,000 sq m of retail space — Magnolia Park in Wroclaw, Galeria Twierdza in Klodzko and Galeria Twierdza in Zamoeæ. Galeria Tecza opened recently in Kalisz and will be acquired by Blackstone by the end of 2011 and added to the King’s Street Retail portfolio.
QATAR AND EGYPT DEALS
Al-Futtaim close to financing deal for mega-projects AL-FUTTAIM Group is close to raising about $1.3bn in loans to meet its expansion plans in Qatar and Egypt, after reaching the “final stages” of a $1bn syndicated loan facility in Qatar and a separate $334.3m loan, according to John Wartig, group director of finance at Al-Futtaim. “We are in the final documentation stages for the syndicated loan in Qatar with four to five banks ... it’s around $1bn in size,” said Wartig. SWEDISH institutional investor AMF Fastigheter has put the emphasis on place-making and sustainability for its inner city MOOD development in Stockholm, according to AMF’s head of retail Karolin Forsling. “MOOD is not a mall, it’s more a place — a city within the city,” she said. And although it has become a sought-after retail destination, attracting brands like Armani Jeans, Barbour,
“The financing will meet our Qatar expansion plans for a retail mall and an IKEA store.” The group’s Qatar loan facility involves around four to five banks, while the Egyptian pound facility will be signed with five banks, Wartig said. The company plans to build a Festival City mall in Doha with the fi nancing and was at MAPIC once again to promote its mega-projects.
Gant, Hugo Boss, Paul Smith and Polo Ralph Lauren, AMF did not start by leasing the shops. The first pre-lettings were to three of Stockholm’s top restaurants, one to each of the project’s three levels. Because of a fall across the site, each level effectively has a ground floor entrance. The development will open in March 2012 and stretches over 10,500 sq m, offering 60 retail and leisure units.
i neWs: MAPIC HIGHLIGHTS
City focus and trends workshops MAPIC CITY FOCUS
Summit proposes guidance to steer town planning THE SECOND Retail in the City summit concluded that the perceived opposition between downtown retail and suburban and out-oftown retail sites should no longer be the mainstay of planning decisions in European towns and cities.In all, 40 city experts and local government officials were invited to the 90-minute roundtable event, which took place on the fi rst day of MAPIC, and under the stewardship of Bertrand Boulle, president and founder of French-based planning consultancy Mall & Market, the working groups came up with some key proposals. Boulle said that the working groups were now looking into the feasibility of producing information which could act as a guide for both developers and local authorities on the modern requirements of retail planning. “If you have two cities 50km apart and suburban retail in between, are the cities in competition with the out-of-town retail? No. It is the two downtowns that are in competition,” he said. “We need to recognise that inner-city and suburban retail serve different but complementary purposes and that they need to work together. In fact they both need each other.” Boulle brought the conclusions reached during
the workshops together and said that planning should focus around what consumers want, which is both in-town and out-of-town retailing. “Politicians tend to favour the smaller retailers but there needs to be more education of local authorities,” he said. “Local government was well represented at the summit and they were in agreement at this more pragmatic approach, working with one voice.” The bigger picture is to disseminate the conclusions to a wider audience and the group – a mix of senior private sector and local authority delegates – concurred that guidance outlining a more modern and less confrontational approach to retail planning is needed. Boulle is now working on the next stage of a plan.
Bertand Boulle (left) led the City Summit session based on roundtable workshops (above) at the Palais
MORE AT MAPIC
MORE AT MAPIC BRINGS INNOVATION TO THE FORE THE ENLARGED MORE Pavilion at MAPIC brought the trends-based information produced by MAPIC to the show floor with halfhourly sessions every day which played to packed audiences. A highlight among speakers such as Kate Ancketill, founder and CEO of trends specialist GDR Creative Intelligence and Laure Colliex, associate director and head of strategy at Paris-based specialist Lord Culture, was Boxpark founder Roger Wade revealing that he and Dutch developer Corio were looking at suitable
locations for a second pop-up mall. Wade’s first project, run in unison with UK/ French developer Hammerson, opened on December 1 this year in Shoreditch, a trendy urban area of London. Wade used MAPIC to outline plans to replicate the concept with Corio, looking at sites where for planning or financial reasons a permanent shopping centre would not be opened for some time and where a ‘pop-up’ mall could be put in place for up to five years. New trends and new shopping experiences were also outlined in displays and discussions throughout the three days of MAPIC, bringing innovation and fresh thinking from within and outside the retail property market to Cannes.
Boxing clever: Roger Wade and Corio sign in Cannes
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i ntervieWs Robert Sloss
Stefano Maullu
Alexander Otto
Chief executive, Squarestone, United Kingdom
Councillor for Tourism, Trade & Services, Lombardy region, Italy
Chief executive, ECE, Germany
“BRAZIL is highly urbanised and the 100th biggest city still has a population of more than 250,000. Over the last eight years a huge number of people have moved out of the D and E demographic groups. So 135m out of 200m population are now in the A, B or C groups. That’s more than India. Historically, import tariffs have acted as a barrier to entry for retailers but they are now arriving, including Diesel, TopShop and Hollister. Equally, the presence of Sonae and Westfield is helping to underpin investor confidence in Brazilian retail real estate.”
“LOMBARDY is as big as the Netherlands and has as much potential. The region is looking to capitalise on the 2015 World Expo which is coming to Milan. We don’t see it as a one-off, but rather as a long-term catalyst. Consumers are changing and new structures are emerging. A feature of Lombardy is that big schemes are integrated into the city centre commercial districts and with the neighbourhood shops. I expect more retailers to follow, looking especially around Milan, Brescia and Bergamo.”
“WE ARE looking forward to 2012 in a good position, because I think Germany remains a popular new market for international retailers. We have seen the likes of Abercrombie & Fitch, Hollister, Primark and Apple come in all representing different sectors but all performing well. That strong performance by international brands has not always been the case and recent successes have definitely encouraged others. We also see good growth prospects in Turkey, where there is strong pent up demand.”
Bill Giouroukos
Christian Recalcati
Gary Bond
Director of operations, Westfield, United Kingdom
Joint CEO, Larry Smith, Italy
CEO development, McArthurGlen, United Kingdom
“THERE is no doubt that the opening of Westfield London and Stratford City has meant that the perception of us at MAPIC has changed. The knowledge of what we are all about is much greater. But I think we have also changed, which is why we decided to sell our stake in Nottingham. We have successfully managed two very large projects and we have another now in Milan. We are looking at Croydon — although it’s too early to say much — and we have entered Brazil. That means when looking at schemes we must consider not just whether it is right for the city but whether it fits our business model.”
“IT IS hard to look into the crystal ball for Italy in 2012 but the country is underrepresented in terms of international retailers and I believe that there remain strong fundamentals and good opportunities for retailers in Italy despite the economy. What concerns me more is finance and I do not mean simply for developers. What happens to the guy with a few stores who wants to grow? Will the banks finance expansion and allow these small businesses to become bigger? It is that caution which could hold back Italy next year.”
“WE HAVE extensions opening or being built on all our Italian schemes and more than 120,000 sq m of new space being added to our European portfolio — which makes it the biggest period of concentrated development in recent years. We’ve also got the new centre at Neumunster, near Hamburg, which is scheduled to open in autumn 2012. We have also entered into a joint venture with Vancouver Airport Authority to build an outlet centre near the airport. Canada is in my view under-served and we expect to start construction in 2012.”
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Per Wendschlag
John Strachan
Chris Tarrant
Managing director of IKEA Shopping Centres, Russia & CIS
Global head of retail, Cushman & Wakefield, United Kingdom
Executive vicepresident, Oberfeld Snowcap, Canada
“THE COMPANY is now reaping the benefits of early entry into the Russian market. We opened our first Mega shopping centre in 2002 and now have 14, totalling about 2 million sq m. The power of the IKEA brand undoubtedly helped, but we were daring. We were the first to take that step beyond Moscow. Following two openings this year in Samara and Ufa, there are now Mega shopping centres in 10 of Russia’s 11 ‘millioniki’, the cities with more than a million inhabitants. I believe the format could work in cities of 500,000 population — of which there are another 25 — but the next phase of expansion will be to plug gaps in the existing network, especially around Moscow. The priority now is Moscow, Moscow, Moscow. All three of our IKEA stores in the city are in the top ten performers worldwide.”
“THERE is no doubt that retailers arrived in Cannes with a focused business approach. The buzz around the show has surprised people, who wondered how the mood would be, but I would put much of that down to the fact that the industry has become robust about trading in a downturn. There is also the growing globalisation of both investment and retail opportunities, which brings in new people and means that retailers and brands can look at expansion in markets which are still performing strongly.”
“TRANSITION to the Canadian market is slightly simpler than to the US and it’s a more stable market. We have felt little impact from the recession and it’s our view that we won’t be hit by the ongoing crisis. Although Canada is large around 50% of the population lives in just six cities, so servicing Vancouver, Calgary, Quebec, Toronto, Montreal and Ottawa gives an incoming retailer national coverage. We came to MAPIC because we believe that if you want to partner with European companies you have to come to them and this year we have for the first time seen strong interest from CEE retailers and the CIS.”
Mustapha Belgsir
Vice president, Grand Poitiers, France
Paul Nicholls
Head of asset management, Herald fund, Henderson Global Investors, United Kingdom
“THIS year has been about asset management and few acquisitions would not involve the potential for an asset play. As a consequence we’ve seen Germany continue in popularity as it’s super-safe and Scandinavia is popular outside of the EU. France also offers a lot of stability and the market is making some headway and there are signs of some rental lift. As for Spain, it is continuing to polarise, with a number of schemes and locations very active but tertiary centres nowhere.”
“CAPITAL of the Poitou-Charentes, with a catchment area of 400,000, historical Poitiers is only 90 minutes from Paris by TGV, has a university and is a well known commercial city. This year Poitiers presented changes in its business development and particularly its thriving pedestrian downtown and the redevelopment of its public spaces. The town centre provides 45,000 sq m of retail for more than 600 stores, while around the city there are three major shopping centres. The original Grand Poitiers and its strength lie in the implementation of a scheme based on trade diversification, with neighbourhood stores and commercial redevelopment.”
Jan Heere
Director, Marks & Spencer, Russian Federation
“OUR VISION is to be a truly international and multi-channel retailer, with international operations fully integrated into our business. We also want to balance our portfolio and be less dependent on the UK. We are clearly focused on priority markets in Europe, the Middle East and Asia, but that does not mean we will not look at other markets. India and China are obviously important and we will be adding more stores this year. And of course we are coming back to France before Christmas and we plan to open more stores around Paris.” www.mapic.com I magazine I January 2012 I 15
mapi cawards MAPIC AWARDS 2011
Spain, the US and Japan scoop top retail prizes The Jury PRESIDENT: JOHN STRACHAN Cushman & Wakefield LLP, global head of retail, (UK)
Man of the year
A
T the prestigious MAPIC Awards, presented at a gala event on the Thursday of the show, Spanish fashion giant Desigual scooped the prize for best retail expansion, while US group Abercrombie & Fitch was chosen as best retailer in the city centre. Asics for its Amsterdam ďŹ&#x201A;agship, Eurovea in Bratislava and Galeria Echo in Kielce, were the other winners on the night. As part of the Italy Country of Honour celebrations, Mario Moretti Polegato, chairman of Geox, was picked as Personality of the Year.
MARIO MORETTI POLEGATO
GEOX (Italy)
ALAIN BOUTIGNY Sites Commerciaux, editorin-chief (France)
YANN GUEN Mayland Real Estate, vice-president (Poland)
MAPIC Awards 2011 Winners
PIERRE FRANCIS AMCV-TOCEMA, executive director (Belgium)
BEST NEW RETAIL CONCEPT
ASICS AMSTERDAM FLAGSHIP
HERMAN KOK Multi Corporation, international markets & research director (Netherlands)
The Netherlands Submitted by Wests Design Consultants on behalf of Asics
KLAUS STRIEBICH FREDERIC LALOUM ECE Projektmanagement, Altarea, directeur general managing director leasing adjoint / membre du directoire (Germany) (France)
STEFANO STROPPIANA Stefano Stroppiana, retail real estate developer (Italy)
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ANDREW WATSON LaSalle Investment Management, international director, and head of core funds, continental Europe (France)
magazine I January 2012 I www.mapic.com
Supported by:
BEST RETAIL EXPANSION
BEST RETAILER IN CITY CENTRE
Spain
ABERCROMBIE & FITCH
Submitted by Desigual
United States
DESIGUAL
BEST RETAIL DEVELOPMENT
BEST REFURBISHED RETAIL DEVELOPMENT
EUROVEA
GALERIA ECHO
Bratislava, Slovakia
Kielce, Poland
Submitted by Ballymore Eurovea, a.s.
Submitted by Echo Investment SA
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invision MAPIC 2011
Three days at MAPIC 2011: People, presentations, prizes and parties Cannes once again played host to over 8,000 retail property professionals, who came from all corners of the world for three days of networking and business
EVENTS OPENING PARTY, AWARDS Cocktails at the Marriott (top) and winning teams
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INSPIRING INSIGHTS KEYNOTES U Mario Moretti Polegato - GEOX (Italy) U James Brown - Jones Lang LaSalle (UK) U Jan Heere - Marks & Spencer (UK)
A BUSTLING MAPIC U Power meetings U Crowded aisles U Networking
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WORLDWIDE EXHIBITORS U India U Canada (Oberfeld Snowcap) U Singapore (CapitaMalls)
RETAIL IN THE CITY SUMMIT Expert workshops Boulle: Guidance plan
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TRENDS & INNOVATION AT MORE PAVILION U Presentations U Discussions U Demonstrations
OUTLETSâ&#x20AC;&#x2122; BIG PRESENCE U Copenhagen Designer Outlet U McArthurGlen Designer Outlets U Outlet China Limited
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