Preview mapic 2013

OCTOBER 2013

mapic

www.mapic.com The official MAPIC magazine

®

PREVIEW RETAIL FRONTIERS

THE EURO ZONE

Also inside:

Store groups push for new markets

Investment returns to the continent

International expansion is being led by fashion, as retailers reshape for an omni-channel future

Transactions are up as investors selectively target beyond the core European markets

SEE PAGE 27

SEE PAGE 44

• Rising Stars: MAPIC Focus on Brazil, China, India and Russia • New retailers • Food and Beverage • Retail in transport hubs • Second Digital Summit • North America • Asian Growth

Visit us at Riviera Hall R33.12

All roads lead to success – take the fast lane. www.ece.com

EDITORIAL

CONTENTS iNEWS

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Val d’Europe expansion; Second Digital Summit; Brazil’s ABRASCE; Arcotecnica in China; Conference highlights; Master franchising; Russian retail; European investment

Nathalie Depetro MAPIC Director

Dear friends

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ELCOME to the MAPIC Preview, where you can read about what’s going to be happening at the largest annual gathering of companies operating in the international retail real estate sector.

This year’s MAPIC will shine the spotlight on four of the world’s rising retail stars — China, Brazil, India and Russia. A growing middle class in China, a change in the law covering foreign investment in Indian retail real estate, the continued demand for shopping centres in Russia and the development of new centres beyond Brazil’s traditionally strong Sao Paulo and Rio de Janeiro markets, are all combining to make these four countries particularly attractive for retailers and retail real estate specialists.

In China, e-commerce is growing at an average 71% per year and the increasingly connected world is having a considerable impact on the international retail business. Following the success of last year’s inaugural MAPIC Digital Summit, the event returns for a second edition which will look at the convergence between off and online retailing, how this development is impacting retail habits, cities’ approach to using digital to support city-centre development and what are the challenges facing retail-related real estate.

With over 70 countries represented at MAPIC, it’s clear that the internationalisation of the retail market continues. The 2013 conference and networking programme will take a close look at the important role master franchises are playing in the opening up of new retail markets.

And over the three days of MAPIC, you can access conference presentations of the state of retail real estate in over one dozen countries.

It’s going to be a busy and exciting MAPIC and I hope I will have the pleasure of seeing you in Cannes. Until then, enjoy this Preview magazine.

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iINVISION

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Just a small selection of Rising Star attendees and food and beverage retailers at Cannes this year

i FEATURES RETAIL

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In search of expansion 27 Retailers are scouring the globe in their search for growth, with fashion leading the next generation of store openings Shopping around MAPIC 30 We look at some of the retailers coming to MAPIC

CONFERENCE PROGRAMME

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ZONES

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A corner turned It has been a tough five years since the economic crisis but for the retail sector signs are at last more promising EMEA: Back in the zone Investment and development begin to gear up as Europe becomes more confident and the Middle East returns to bullish form Asia: City schemes scaled for new retail Asian countries are keen to leverage consumer buying power Americas: Local heroes Neighbourhood schemes, main streets and specialist malls benefit from the recovery

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i FOCUS

RISING STARS

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The Fantastic Four A panel of experts look at the four very different Rising Star markets of Brazil, China, India and Russia Russia steps forward Russia prepares to welcome a number of pivotal schemes as landmark projects head towards completion The great mall of China Consumer demand drives Chinese retail onwards, attracting global retailers India’s growth on the agenda Global benchmark schemes can put India on a firm footing The Latin quarter Brazil’s retail scene expands beyond the gateway cities

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iTIPS & SERVICES

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MAPIC STEERING COMMITTEE

Mr Robert de Barr Director DE BARR ASSOCIATES LTD

Mr Alain Boutigny CEO LES EDITIONS DU SITE

Mr Clem Constantine Director of Property MARKS & SPENCER LTD

Mr Christian Dubois Partner-Director CUSHMAN & WAKEFIELD

Mr Chris Igwe Head of Retail CB RICHARD ELLIS

Mr Henrie W. Kötter Managing Director CENTER MANAGEMENT ECE

Mr Jorge Sanchez Mera Leasing Corporate Director NEINVER SA

Mr Peter Wilhelm CEO WILHELM & CO

Mr Stefano Stroppiana Managing Partner BRANDPARTNERS RETAIL DEVELOPMENT

Mr Pierre Combet

Mr Jean-Paul Fréret

Mr James Napoli

Mr Andrew Watson

CEO RETAILP

Development DirectorFrance CARREFOUR

Executive Senior Director-Leasing MAJID AL FUTTAIM PROPERTIES

Head of Core FundsContinental Europe LASALLE INVESTMENT MANAGEMENT

mapic PREVIEW The official MAPIC magazine October 2013. Director of Publications Paul Zilk Director of Communication Mike Williams 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 Jo Stephens Proof Reader Debbie Lincoln News Editor Graham Parker Contributors Ben Cooper, Mia Hunt, Liz Morrell, John Ryan PRODUCTION DEPARTMENT Publishing Director Martin Screpel Publishing Co-ordinators Nour Ezzedeen, Emilie Lambert, Amrane Lamiri Production Assistant, Cannes Office Eric Laurent Printer Riccobono Imprimeurs, Le Muy (France) Reed MIDEM, a joint stock company (SAS), with a capital of €310.000, 662 003 557 R.C.S. NANTERRE, having offices located at 27-33 Quai Alphonse Le Gallo - 92100 BOULOGNE-BILLANCOURT (FRANCE), VAT number FR91 662 003 557.

Contents © 2013, Reed MIDEM Market Publications. Publication registered 4th quarter 2013. ISSN 1961-022X. Printed on 50% recycled paper. ®

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NEWS AGENDA P. 8 Val d’Europe

P. 10 Digital Summit

P. 12

EXPANSION

Primark to open as part of Val d’Europe expansion

Brazilian retail opportunity

P. 14 Arcotecnica in China

P. 16 Robust European investment predicted

P. 18 Russian retail

Now and zen: Val d’Europe will expand by 16,000 sq m by 2016

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HOPPING centre developer Klepierre has confirmed plans for a €94m expansion of its Val d’Europe shopping centre near Disneyland Paris, adding 25 new international stores when the extension is completed in 2016.

The 82,500 sq m project will add another 16,000 sq m of retail space through the expansion and Auchan, H&M, Fnac, La Grande Recre, Go Sport, Darty, Zara, Apple and Gap will be joined by value fashion retailer Primark, with a huge 7,400 sq m store, among others upon the completion of the project. As part of the leisure mix, the scheme also includes 18 restaurants and an aquarium called Sea Life.

Val d’Europe opened in 2000 and ranks among the top five French malls in terms of sales, having achieved annual revenues of €512m in 2012 and it attracts 16 million visitors annually.

Klepierre said that the scope of the project illustrates its current strategy to concentrate its investments on shopping centres with “good visibility and strong commercial prospects”, located in areas that offer high growth potential.

Val d’Europe is part of the USE (Unique Shopping Experience) concept from Klepierre, which has as its aim to make ongoing improvements to the customer experience by ensuring that it includes access to services such as Zen spaces for a rest between stores, special spaces for parents, play areas for children and Wi-Fi zones.

The performance of the existing centre has been recognised by Procos, which chose Val d’Europe as the recipient of its award for the greatest commercial success in France in the past 20 years.

i NEWS

RELATED CONFERENCE TO MAPIC Digital Lunch & Digital Summit By invitation only Tuesday 12 November 13.00-18.00

NEWS IN BRIEF

OMNI-CHANNEL

INDIAN ONE-STOP SHOPPING CENTRES

Second Digital Summit focuses on digital tools and convergence

INORBIT Malls, a group company of the K Raheja Corp, expanded its footprint to Vadodara, Gujarat on September 5. Inorbit Malls opened its first mall at Malad, Mumbai in early 2004, and since then Inorbit has repeated its success with malls in Vashi Navi Mumbai, Cyberabad Hyderabad, Viman Nagar Pune and Whitefield Bangalore.

They seek to provide a one-stop destination for fashion, lifestyle, food and entertainment.

The MAPIC Digital Summit, now in its second year, is aimed at bridging the gap for key players between retail real estate and the increasing digitalisation of the retail sector. The half day event, which takes place the day before MAPIC, will be attended by 50 invited guests and will consider using digital tools as a means of achieving off- and on-line convergence.

Among the questions that the thought leaders will address during a session which will mix presentations and workshops, will be what tools are available and whether they are suitable for everyone; who uses them and why; what the needs are for total and partial integration into business models.

The event will start with a ‘learning and discovering’ session about these new tools, where attendees will hear the findings from an exclusive survey by CBRE, and a presentation by Convergences-cvl, L’Echangeur by Laser and the Hub Institute. This will be followed by an in-depth look at three case studies.

Three main topics will be addressed: retailers (Microsoft), shopping centres (Land Securities and Clear Channel) and shopping in city centres (Varese City, McDonalds). The Summit will close with a brainstorming session, a wrapup session by CBRE and special keynotes on the future of retail by Invalio and Microsoft.

ARCADEN TO OPEN IN Q3 NEXT YEAR RECKLINGHAUSEN Arcaden will open in the third quarter of 2014 and will take “World comes to City” as its motto. MFI general project manager, Francisco Morillo, said of the scheme: “We want to offer visitors to the Recklinghausen Arcaden a coherent concept and an outstanding, diverse shopping experience from the very outset. And that is an extremely complicated task, for example against the background of the innovative gastronomic concepts and the international focus of the tenants.”

INNOVATION FORUM: FOUR THEME FOCUS THIS year the popular MAPIC Innovation Forum will focus on four key themes: multi-channel, retailtainment, pop-up shops and food & beverage, with a conference session every 30 minutes. The 180 sq m space at Lerins level will include a dedicated conference room and an exhibition and networking area. Exhibitors include: Cykomm; Europacity; Eurocs Group;Fidzup and EMA Evenements. SFR (French mobile operator) has signed in as a sponsor.

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EUROPEAN INVESTMENT

Eurocommercial sees potential in more European acquisitions DESPITE generally weak economies in Europe, the major feature of property markets in France, Italy and Sweden is paradoxically insufficient good quality shopping centre investments to meet continuing strong institutional investor demand, according to Eurocommercial. The result is that prices have remained firm or even, in the case of France, risen slightly.

Eurocommercial said that the outlook for rental growth will be affected by the economic weakness in France and Italy, with Swedish growth expected to be between 1% and 2%. Rents in these countries are also linked to inflation, which remains subdued between 0% and 1.5%, so that rental growth

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is not generally expected to be much greater.

Base rent reviews and re-lettings at the end of leases are still expected to show rises compared with historic rents set five or more years previously, in addition to indexation.

The overall outlook, therefore, for total returns (rental and value growth combined) from good retail properties is in the order of 6-8% per annum, said the company, which it described as “sound when considering subdued inflation and expected investment returns from other asset classes”.

Eurocommercial’s strategy continues to be to acquire centres in its existing countries that, “regardless of size”, have rental growth and expansion potential.

SPECIALIST COMMUNICATIONS FOR THE RETAIL ENVIRONMENT

FTI Consulting is the official communications partner to MAPIC. www.fticonsulting.com

CRITICAL THINKING AT THE CRITICAL TIME™

i NEWS RISING STAR BRAZIL

Brazil represents huge opportunity for retailers BRAZIL is one of the four Rising Star countries at this year’s MAPIC and a number of representatives will be in Cannes to showcase the opportunities and explain the challenges of this vast Latin American market.

Luiz Fernando Pinto Veiga, president and CEO of the Brazilian shopping centre association ABRASCE, points out that Brazil is one of the fastest developing countries globally and that it has an open and democratic business environment, and a young population with increasing purchase power and great willingness to spend.

Veiga said: “Brazil is a developing country with great growth potential and opportunities. It is fundamental that ABRASCE, as the main representative of the shopping centre industry in Brazil, shows the strengths and professionalism of our industry and exchanges information with players in different parts of the world.”

There are 468 shopping malls operating in the whole country, comprising approximately 85,000 stores, and 8 million sq m of gross leasable area. “At the moment, there is 58.6 sq m of GLA per 1,000 inhabitants, indicating a huge market potential for new stores and malls, compared to more developed markets,” Veiga added.

EUROPEAN DEVELOPMENT

IMMOCHAN PLEDGES TO GROW DEVELOPER Immochan, a subsidiary of French grocery chain Auchan, has committed to €2bn of investment as it continues to expand in France and internationally, presenting projects in 10 countries at MAPIC this year.

Among recent highlights are Aquarelle (Volgograd, Russia, 92,000 sq m GLA) and Lomianki (Poland, 33,600 sq m) and this year the amount of shopping centres under Immochan’s

management has increased to 342, across 12 countries, totalling 2.1 million sq m.

In 2012 Immochan launched 10 major projects in Europe and Asia as part of a pipeline of 700,000 sq m of identified projects. Within three years Immochan plans to have opened 80 new and extended retail galleries and strip malls, with half of the investment dedicated to new shopping centres.

Setubal, Portugal: Extending in 2014

US DEVELOPMENT

Thor Equities tops out Meatpackers building

Thor Equities: New flagship scheme in New York’s Meatpackers District

Luiz Fernando Pinto Veiga, president and CEO of the Brazilian shopping centre association ABRASCE 12 I

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TACONIC Investment Partners and Thor Equities have topped out 837 Washington, the Morris Adjmi-designed commercial and retail building located in New York’s Meatpacking District. The twisting structure rises from within an existing landmark building and will be punctuated by a floor-toceiling window wall wrapping the façade.

The 5,000 sq m space has been envisioned as a flagship location for market-leading global companies in the fashion and technology industries. Numerous possible

divisions allow for up to 3,500 sq m of retail space or nearly 4,000 sq m of office space.

The retail space is anchored by a corner presence on Washington and 13th St and Thor Equities is responsible for the retail leasing of the building.

Thor Equities is organising three Happy Hours at the Business Lounge during MAPIC: 13 November: 11.30-12.30 14 November: 11.00-12.00 and 17.00-18.00 Retailer-only.

MIPIM MEANS PROPERTY INVESTMENT MIPIM, the world’s leading real estate investment trade show, brings together the most influential players from all property sectors. For 25 years, MIPIM has been offering unrivalled access to the greatest number of development projects and sources of capital worldwide.

MIPIM is a fantastic platform and a great way to kick-off the year Dietrich Heidtmann, Global Head IR & Capital Markets, AXA Real Estate Investment Managers

20,000 delegates 7,500 companies 19,000 m² exhibition surface 80 countries 4,300 investors 3,000 CEOs & chairmen

Bustling international exhibition floor Expert-led programme of conferences Exclusive networking platform For more information, please contact Laurianne Dicecca, laurianne.dicecca@reedmidem.com or visit our website www.mipim.com

i NEWS NEWS IN BRIEF

CHINESE OPPORTUNITIES

PTAK TO LAUNCH THIRD PHASE

Arcotecnica targets China with first Destination Centres

MAPIC will mark the beginning of the third phase of the PTAK Outlet, the largest outlet centre in Poland and the first in the Lodz region. The outlet opened in October 2012 and combines wholesale and retail fashion sales. PTAK Outlet covers 33,000 sq m and 70 global brands such as Tommy Hilfiger, Lacoste, Adidas, Puma, Pierre Cardain, Smyk, Baldinini, Hogl and Gerry Weber have opened their boutiques in the outlet.

JIHUA Group, a Chinese Company listed on the Shanghai Stock Exchange Market, plans to become one of the major players in the industry by creating the first Destination Centre Network in China. The concept will comprise fashion and luxury outlets, including international brands and sports hubs with active entertainment amenities, from climbing walls, golf and driving simulators, to indoor skydiving, ski and surf facilities.

There will also be an extensive hospitality offering, with hotels, wellness centres and restaurants.

Italy-based Arcotecnica Group has developed the concept and has been appointed for the development of the whole project and its operational implementation across the Chinese

territory. “Signing this deal is the culmination not just of months of hard work, but of accumulating years of experience,” Davide Vigano, president of Arcotecnica, said. “We were always ambitious to grow in China and now the time has come.”

The first stage of the work for Arcotecnica and Jihua will involve identifying suitable locations for development. Vigano added: “The initial phase of work will focus on identifying the first three sites; but the entire life-cycle of the contract — which envisages nine years of collaboration — will ultimately see the realisation of numerous Destination Centres in China.”

Leasing operations have already started and the complete concept and the first locations will be revealed at MAPIC.

RUSSIAN COLLECTION RUSSIAN Collection — an exclusive black tie gala dinner — will provide a meeting point for Russian developers and international retailers. The Russian Collection will provide an overview of mall development in Russia, an overview on the consumer market, a showcase of the best new shopping centres and an opportunity to meet decision makers from Russia.

Organised by Impress Media, will take place at 19.30 on November 13, Salon des Ambassadeurs, Palais des Festivals, Cannes. Email: rc@ impressmedia.ru, or call +7 (495) 926-7340.

LUXURY RETAIL

RETAIL OPPORTUNITIES IN TRANSPORT HUBS MAPIC participants will be able to discover some of the fastest growing retail opportunities within retail in transport hubs this year. The event will showcase how retailers and developers are turning airports, harbours, train stations, petrol stations and other public transport networks into prime shopping destinations. Dedicated pitching sessions will be part of the programme and both SNCF subsidiary a2c and Transport for London will be involved.

And Thierry Renault becomes Reno: A well known face from MAPIC and MIPIM will be making an appearance at Cannes this year, but not as you may know him. Former Reed MIDEM real estate division director Thierry Renault will be exhibiting a collection of his sculptures at a special viewing at the Carlton during MAPIC and would welcome friends, colleagues and anyone in need of some retail therapy!

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Luxury in the spotlight at Cannes THE ONGOING growth of luxury retail will be examined in a special session at Cannes, with speakers from some of the major luxury brands sharing their experiences and ambitions for future growth.

Chaired by John Strachan, global head of retail at Cushman & Wakefield, he said: “Luxury retailing continues to fuel trading and rental growth across prime pitches of the global market. Luxury retailers are competing for the most coveted shopping destinations, exerting upward pressure on prime rental values. Despite recent slower sales growth, the luxury sector will remain resilient and continue to play a vital role in driving overall performance in the world’s premier locations.”

The company is co-organising the panel conference dedicated to luxury retail scheduled

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for Wednesday, November 13, from 14.30 to 15.15 in the Palais.

The Estate Of Luxury Retail Worldwide will look at how the world’s leading luxury brands are repositioning themselves to focus on highend core product areas with emphasis on exclusivity, quality and heritage and what impact this is having on global store strategy and real estate requirements.

Participants will include John Strachan; Carmine Rotondaro, worldwide real estate director, Kering; and Darin K Vest, director, global real estate, Tiffany & Co. RELATED CONFERENCE TO MAPIC “The estate of luxury retail worldwide” Co-organiser: Cushman & Wakefield Wednesday 13 November 14.30-15.15 – Oxford Room

i NEWS EUROPEAN INVESTMENT

CONFERENCE HIGHLIGHTS

European retail investment resilient says CBREGI

RETAIL KEYNOTES CONFIRMED FOR PACKED CONFERENCE AGENDA

Puerto Venecia, Zaragoza: One of the few major openings in 2012

UNDERPINNED by daily consumer needs, the retail market has proven not to be as cyclical as the office and industrial markets, which are more vulnerable to economic developments, claims Florencio Beccar, CBRE Global Investors (CBREGI), fund manager, European Shopping Centre Fund.

“Retail is an asset class with a long-term rental income stream and capital appreciation through rental growth. This is because rents are a function of sales more than traditional supply and demand imbalances, which are typical of other asset classes,” he said. “Income streams are secured on a broad range of tenants compared with average office and logistics leases.”

Beccar pointed out that vacancy rates in the prime retail sector are still relatively low across Europe and strict regulations on retail developments defend the retail market against oversupply and protect rental income in most European countries. “Strong investor interest in prime retail is evident when looking at the current yields. Prime shopping centre yields in core markets appear to have stabilised at around 5% net, which is close to their historic lows,” he said. “After a couple of years of strong investor demand and almost no new retail supply, the lack of core shopping centres is becoming a major challenge for investors as the risk of overpricing for these assets is rising.”

Going forward CBREGI expects continuing interest for both the retail sector and logistics as both will benefit from ecommerce trends. “The focus will continue on the core markets of northern and western Europe which could now offer value-add potential for investors willing and able to work on their properties.

Southern Europe will be closely watched by investors pursuing a value-add strategy based on market recovery,” he added.

Beccar: Retail less cyclical 16 I

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A SERIES of high-profile keynote speakers have been confirmed for this year’s MAPIC conference programme, which once again stretches across the three days of the event and which will cover a number of major topics within the retail sector.

Janusz Kulik, member of the board at German grocery retailer Rewe International will deliver the first keynote on November 13 from 12.00 to 12.45, while on day two the keynote will comprise a special panel of international retailers and franchisers. The panel will feature Norman Jaskolka of Canadian footwear specialist Aldo Group International, Marcus Chipchase of UK grocery giant Tesco and Brendan Dorrian, personal envoy to the chairman & head of business development of Saudi Arabian master franchise company Fawaz A Alhokair. The session takes

place between 15.15-16.00 on Thursday, November 14.

Renowned designer Philippe Starck will also speak on Thursday at 11am in the Agora, while Vineet Arora, CEO of business and strategic development of JamilCo Group of Companies will also be a keynote speaker.

The full line-up of conferences is available on the MAPIC website at www.mapic.com.

Retailer Janusz Kulik

MASTER FRANCHISING

Franchising focus for international expansion MAPIC will feature an increased presence from master-franchisers at this year’s event, reflecting the growing need for partners to help international retailers expand their businesses overseas.

A number of large master-franchise companies will be present in Cannes, including Majid Al Futtaim, Alshaya, Amstar, Gruppo No1 and Zibbi Group, plus Saudia Arabian-based Fawaz A Alhokair & Co, a public listed retail franchise company which operates across 11 international markets in the MENA region, Central Asia and the Caucasus region, plus the US. The company manages a brand portfolio of some 60 brands, and last year opened a new store every 18 hours. Simon Marshall, CEO of Fawaz A Alhokair & Co, said: “We will deliver, in 2014, more of what we’ve delivered thus far, throughout 2013; that is, increased shareholder returns, propagated by sustained growth in all aspects of our business. Our

responsibility to our partners and our proprietary skill-set is in replicating brands in multiple markets globally, simultaneously, exactly as consumers would experience them in their domestic markets.”

Marshall is a strong advocate of franchising and said: “Franchising is cap-ex-free growth. Like us, our partners must answer to shareholders and, in a world which is fiercely competitive, it’s incumbent on every retailer to deliver reach and speed.

Franchising is a trusted and financially efficient channel to market, which enables retailers to reach more new markets in a way that requires no capex expenditure. Moreover, every retail CEO should have franchising as an integral aspect of their global growth strategy, and if they’re not wholly certain as to why, then they should come and meet me and our brand partners at MAPIC.”

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ewellery manufacturer ADAMAS was founded in 1993 and to this day is the largest jewellery manufacturer in Russia*. The company’s share in the Russian market in 2012 amounted to about 12% by value of the manufactured products.

The company has a production base of the last generation, providing a full cycle of all types of jewellery manufacturing. All through the 20 years of existence, the company is the undisputed leader in the production of gold chains, with a range of more than 3,000 items.

Today, the range of ADAMAS has more than 30 thousand items of jewellery from affordable models all the way to exclusive one-of-a-kind products.

The partners network of ADAMAS has more than 3,000 wholesale and retail trade companies in Russia, CIS and other foreign countries.

The company is a strong representative of the country’s business community. The company’s achievements, social responsibility, business transparency and other aspects of its work were repeatedly recognised by various prestigious professional awards such as the Company of the Year, People’s Brand, Brand of the Year DQG RWKHUV 2Q 0DUFK WKH FRPSDQ\ EHFDPH WKH RIÀFLDO VXSSOLHU RI WKH Olympic Winter Games 2014 and the Olympic Committee of Russia in the category Jewellery, Precious Metals, Gems and Medals and according to the agreement will produce a full set of Olympic and Paralympic medals, which is the strongest possible evidence of the professional competencies accumulated over the years.

For more information please contact: Head of Public Relations Eugenia Sazonova tel.: +7 (495) 737-94-64, ext.: 1653 mobile: 8-926-262-96-29 e-mail: press-center@adamas.ru http://www.adamas.ru/

o pening cocktail party

Sponsored by

Tuesday, 12th November from 7:30pm Majestic Hotel, Cannes Open to all participants

i NEWS RUSSIAN RETAIL

DEVELOPMENT PLANS

Russian retail remains a land of opportunity

Altarea focuses on key schemes and edge-oftown retail concepts

RUSSIA is possibly the most attractive country in the world for the development of retail centres because of its severe climatic conditions, population concentration in major cities, and the fact that there are only a small number of high-quality retail properties, said Nikolay Kazanskiy, managing partner, Colliers International Russia.

“In comparison with European countries, Moscow has the lowest saturation of retail space — approximately 353 sq m per 1,000 residents,” he said. “In 2011-2013 newcomers to Russia included DKNY, Michael Kors, Desigual, Banana Republic, American Eagle Outfitters, Jaeger, Reiss, Hamleys, Mamas & Papas, Imaginarium, Bath and Body works, SIA Home Fashion, Trollbeads, Takko Fashion and Smoothie Factory.”

By the end of 2013 if all of the announced retail centres have been opened on time then the Russian capital, including its satellite cities, will have added nearly 500,000 sq m GLA over the entire year. This would be 2.3 times more than in 2012. Among the largest projects of the second half of the year are Goodzone (56,000 sq m GLA), Krasny Kit, phase 2 (45,500 sq m GLA) and Reutov Park (41,000 sq m GLA).

“Limited available space in Moscow’s shopping centres in the last few years has pushed Russian and foreign retail operators to be more proactive in considering regional markets,” Kazanskiy said. “The development of the regions has been continuing to pick up speed in 2012-2013. In light of the high demand on the part of retailers, developers are gradually returning to projects which were frozen during the crisis. The leaders in terms of new construction are Irkutsk, Yekaterinburg, Saratov, Omsk and cities connected with the oil economy (Tyumen, Surgut).”

RELATED CONFERENCE TO MAPIC “Master Franchisors: the gateway to Russia for international retailers” Content partner: Impress Media Wednesday 13 November 15.30-16.15 Champs-Elysées room

Nikolay Kazanskiy: Russia ideal for malls 18 I

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FRENCH developer Altarea Cogedim has confirmed that it plans to continue to focus its investments on its 40 key completed and under-construction retail projects for the remainder of the year and moving into 2014.

Among its major schemes are the 86,000 sq m Villeneuve-la-Garenne regional shopping centre (opening slated for early 2014) just outside Paris. The retail offering will feature 170 Stores including Carrefour, Marks & Spencer, C&A, H&M, La Grande Recre, Camaieu, Optic 2000, Claire’s, Generale d’Optique, Mango and Zara.

In addition, the Cap3000 regional shopping centre on the French Riviera recently received regional authorisation for an extension of 35,000 sq m GLA that will bring

its total offering to over 100,000 sq m.

Among Altarea’s expansion plans is the ongoing deployment of the Family Village concept, developed to provide a quality approach to edge-of-town retail. Four have already opened in Limoges, Thiais, Aubergenville, and Ruaudin (Le Mans) and most recently Altarea Cogedim completed its fifth Family Village in Nîmes. Further projects are also under way.

RISING STAR GROWTH

RUSSIAN RETAILER EXPANDS TO 140 OWN STORES RUSSIAN fashion retailer and wholesaler JamilCo has expanded to 140 stores within Russia, having started its business in clothing and accessories in 1993. The company works exclusively with such brands as Burberry, Chaumet, De Beers, Jaeger, John Lobb, Paule Ka, Salvatore Ferragamo, Sonia Rykiel,

Vilebrequin, Wolford, Yves Salomon, Zadig & Voltaire, and is the major dealer for Escada in Russia.

JamilCo has also developed labels St James and Cyan and now manages 140 own-retail stores in Moscow, St Petersburg, Yekaterinburg and Rostovon-Don, while its brands are sold in 600 locations in 150 Russian cities.

EUROPEAN EXPANSION

Wilhelm to grow beyond Belgium BELGIUM-based developer Wilhelm & Co has said that it is to build on the success of its L’esplanade (Louvain-la-Neuve) and Mediacite (Liege) schemes, with plans for the construction of a 100,000 sq m retail project in La Louviere.

However, the company also said that it will not limit its development plans to Belgium, with two current projects in France (a 42,000 sq m project located in Valence),

three projects in Italy (with malls ranging from 25,000 sq m to 40,000 sq m) and one project in Portugal (located near Portuguese capital Lisbon, located on a 40-hectare site). In addition, the company said that it may initiate a project in Serbia.

Wilhelm & Co is best known for urbanbased retail projects which target regenerating the city centres where the schemes are located.

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MAPIC AWARDS MAPIC AWARDS 2013

MAPIC Awards to recognise the best of the best at the prestigious Martinez hotel The winners of the MAPIC Awards will be unveiled at the Martinez hotel, building on the success of the new-look ceremony launched last year The Jury

C

REATED in 1996, the MAPIC Awards has always been a competition that rewards excellence, innovation and creativity in the retail real estate industry. This year the finalists will find out who has been crowned on Thursday, November 14, at the prestigious Martinez hotel in Cannes.

The winners will be revealed during a three-course dinner, accompanied by wine and champagne and new for this year will be a special Retail Rising Stars Award, which will be granted to an outstanding project or retailer from Brazil, China, India and Russia.

There are seven other Awards to contend for: • Best fashion & footwear retail concept • Best food & beverage retail concept • Best retail global expansion sponsored by • Best omnichannel strategy sponsored by • Best retail & leisure development • Best retail real estate development in city centres • Most innovative shopping centre Open to all MAPIC participants, the traditional MAPIC Party will be held at the same venue to celebrate the Award winners and to relax, mingle and network with key real estate professionals and retailers in a vibrant social atmosphere featuring cocktails, music and great entertainment.

Seven categories plus a special Rising Stars awards will be presented 20 I

preview magazine I October 2013 I www.mapic.com

PRESIDENT: FREDERIC LALOUM Directeur général adjoint / membre du directoire Altarea, France

ALAIN BOUTIGNY Editor-in-chief, Sites Commerciaux, France

DELPHINE DAUGE Agency director, Brandimage, France

MAXIM KARBASNIKOFF Partner retail, Cushman & Wakefield, Russia

MACIEJ KIELBICKI Board member and managing director, Mayland Real Estate, Poland

ENIS ONCUOGLU Managing director - architect, Oncuoglu+ACP Architecture, Turkey

JACQUES SINKE Director of international retail, MAB Development Group, The Netherlands

JOHN STRACHAN Global head of retail, Cushman & Wakefield, UK

KLAUS STRIEBICH Managing director leasing, ECE Projektmanagement, Germany

With vision! Just like our readers.

The crane houses on the Rhine in Cologne harbor also promise VISION. Designed by architects of Bothe Richter Teherani (BRT) and awarded the MIPIM Award 2009 in Cannes, they are considered a synonym of the top site for living and working in the Rhine metropolis.

TOP LOCATIONS IN OTHER CITIES – THESE ARE OUR TOPICS. As the leading trade magazine we inform you daily at IZ.de about the most important aspects of the real estate industry and comprehensively report weekly in the classical newspaper format about the important topics in the industry. As a subscriber of the Immobilien Zeitung, you receive the daily e-mail newsletter free of charge and can search in our archive at any time – through more than 120,000 articles!

KNOWLEDGE FOR DECISION MAKERS. Immobilien Zeitung Media Group. www.immobilien-zeitung.de

INVISION GLOBAL PERSPECTIVES

Focus on Rising Stars and Food & Beverage retailers In 2013 MAPIC will welcome new markets and new companies as retailing continues to globalise and retail real estate development looks to diversify and expand

CANADA TERIYAKI EXPERIENCE Japanese food the Canadian way (with US and international locations)

UK USA

THE WHISKY SHOP New Whisky-only, multi-channel retailer

SUBWAY

This map highlights a few companies from the four markets designated as Retail Rising Stars at MAPIC 2013, as well as a selection of Food & Beverage retailers — one of the hottest topics in retail markets today. MAPIC 2013 welcomes many new companies, whether as exhibitors or participants. The following selection reflects the emergence of vibrant new retail markets and sectors and just a few of those names are featured here from the Rising Stars and the food & beverage sector.

The world’s largest franchise chain specialises in made-toorder sandwiches

BELGIUM EXKI Healthy-eating focused casual dining chain

FRANCE LUCIEN LA COCOTTE New World-food, chicken culinary specialist RISING STARS

BRAZIL ABRASCE CUSHMAN & WAKEFIELD Business services

ENGEXPOR BRASIL Managing contractor

MULTIPLAN EMPREENDIMENTOS IMOBILIAROS Developer (New participant)

SONAE SIERRA BRASIL Developer

BRAZILIAN EVENTS INTERNATIONAL RETAILERS: HOW TO PENETRATE THE BRAZILIAN MARKET Sponsor: Sonae Sierra

BRAZILIAN COCKTAIL Co-sponsor: Sonae Sierra

BRAZIL PITCHING SESSION (followed by networking) Sponsor: Sonae Sierra

BRAZILIAN AWARD (Presented as part of the MAPIC Awards)

preview magazine I October 2013 I www.mapic.com

ZUMO BARS Largest juice and smoothie bar chain in Europe

Retail association (Speaker)

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IRELAND

FOOD & BEVERAGE SELECTION

RISING STARS SELECTION

NETHERLANDS

SWEDEN

GERMANY

STARBUCKS EMEA

O’LEARY’S

MITCHELLS & BUTLERS

Dutch outlets for global coffee chain

US-style sports bar and diner

RISING STARS

RUSSIA CROCUS GROUP

Urban bar and brasserie chain ‘Alex’

Developer (New exhibitor)

JAMILCO GROUP OF COMPANIES

FOOD & BEVERAGE

Master franchisor (Conference speaker)

MAGAZIN MAGZINOV Business services (Pavilion)

RUSSIA

OKEY GROUP

KINZA New

Retailer (New exhibitor)

Contemporary casual dining chain

REGIONS GROUP Developer (Exhibitor)

LUXEMBOURG

ROSEVRODEVELOPMENT

VAPIANO

Developer (Exhibitor)

Casual dining pizza and pasta offer

RUSSIAN COUNCIL OF SHOPPING CENTRES Industry body (Pavilion)

SBERBANK Financial services (New exhibitor)

TORGOVY KVARTAL

SPAIN

ITALY

VIENA New Quick-service, high quality sandwich chain

Cafe concept from the well known coffee brand

ILLY CAFE

Developer (New exhibitor)

UAE SPINNEYS New

RUSSIAN EVENTS

Grocery group based in Dubai

MASTER FRANCHISORS: THE GATEWAY TO RUSSIA FOR INTERNATIONAL RETAILERS Content partner: Impress Media

WHAT’S NEW IN RUSSIA: THE ADVANCED STRATEGY OF INVESTMENT OVERVIEW Co-organiser: Russian Council of Shopping Centres

THE 18TH RUSSIAN BREAKFAST Organiser: Impress Media (invitation only)

RISING STARS

RISING STARS

INDIA

CHINA

DLF MALL OF INDIA

HENGYI GROUP

Developer (New exhibitor)

Developer (New exhibitor)

INORBIT

HORIZON RESEARCH & CONSULTANCY GROUP

Developer (New exhibitor)

INTER IKEA (CHINA)

Developer (New exhibitor)

Retailer/developer (Exhibitor)

PRESTIGE GROUP

JIHUA OUTLET

Developer (New exhibitor)

Developer (New exhibitor)

INDIAN EVENTS INDIAN PAVILION A showcase of projects from Indian exhibitors

OPPORTUNITIES FOR GLOBAL RETAILERS IN INDIA Co-organiser: Images

INDIAN NETWORKING BREAKFAST (Indian Pavilion)

INDIAN AWARD (Presented as part of the MAPIC Awards)

RRUSSIAN USSIAN AWARD (Presented (Pr Presented as part of the MAPIC Awards) Pr

Business services

PIONEER PROPERTY ZONE (PPZ)

RETAIL ASSOCIATION OF INDIA (RAI)

THE RUSSIAN COLLECTION DINNER Organiser: Impress Media (invitation only)

WANDA GROUP Developer (New exhibitor)

CHINESE EVENTS GLOBAL OVERVIEW OF THE CHINESE RETAIL MARKET – WHERE ARE THE OPPORTUNITIES? Co-organiser: Cushman & Wakefield Sponsor: Inter IKEA

THE ASIA LUNCH Sponsor: Inter IKEA

CHINESE AWARD (Presented as part of the MAPIC Awards)

www.mapic.com I preview magazine I October 2013 I 23

FEATURE

Retail CONTENTS In search of expansion Fashion retailers are at the forefront of globalisation and brand building

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Shopping around The retailers and the brands making waves

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i FEATURE

Italy has proven a pioneer in international store expansion, with retailers such as Benetton leading the way

RETAILERS AT MAPIC

In search of expansion Fashion retailers are spearheading the latest wave of global expansion, says Graham Parker, who looks at the big movers and the importance of omni-channel and luxury.

R

etailing is more than ever a global business, and retailers are increasingly willing to operate outside their home markets. Two factors seem to be driving this hunger for international trade. First is the economic crisis and second is the growth of online retail, which means brands are exposed to consumers across the world, regardless of the location of physical stores.

According to James Dolphin, head of retail agency at Jones Lang LaSalle (JLL), the economic slump that has hit Europe especially hard over the past five years has forced many brands to reconsider their location strategies. “While retail is becoming increasingly international, at the same time retailers are under growing pressure to improve profitability and margins, which often means rationalising portfolios and sifting out non-performing stores,” Dolphin says. “Expansion remains firmly on the agenda however.”

And Peter Gold, CBRE’s managing director of crossborder retail, highlights the impact of the internet on location strategy. “The growth of online retailing is further increasing the rigour with which retailers are analysing their portfolios,” he says. “While some will downsize their store presence, the vast majority are embracing the multi-channel approach — they are developing their

THE ONLINE MARKET ACROSS THE GLOBE THE UK is the world’s most developed online retail market, according to global research from Cushman & Wakefield. The Global Perspective On Retail report looked at the technological infrastructure, regulatory environment and size of the retail and online market in more than 100 countries. It placed the UK just ahead of the US in the list primarily due to its high volume of online sales per capita, online’s market share as a percentage of total retail sales and its openness to new online business and social media.

However, the US is the largest online retail market by some margin, with approximately $187bn-worth of retail goods sold online in 2012 according to data provider Euromonitor. This represents almost one third of all global sales.

Although other top positions in the index are dominated by mature markets from Europe, Asia and North America, the rise of mobile commerce could significantly shift the balance of future retail power in favour of emerging markets, particularly those in Asian markets where mobile penetration is higher, the report concludes.

Cushman & Wakefield’s (C&W) global head of retail, John Strachan, says: “The internet has changed the global retail landscape beyond recognition and is now transforming and impacting significantly upon the way we work, play and shop. Retailers and owners

who can adapt quickly to this new world will not only grow sales across all channels but will continue to enhance the role of their ‘bricks and mortar’ alongside successful digital platforms.”

Countries with scope to become leading online markets in the future have also been identified by the report. China is by far the largest potential market but the publication also predicts that Malaysia, currently ranked 34th, could become a future online star thanks to the quality of its infrastructure as well as consumer potential.

C&W’s John Strachan:“The internet has changed the global retail landscape beyond recognition”

www.mapic.com I preview magazine I October 2013 I 27

RELATED CONFERENCES DURING MAPIC The estate of luxury retail worldwide Co-organiser: Cushman & Wakefield Wednesday 13 November, 14.30-15.15 – Oxford room “Keynote Panel on Master Franchise: Sand & Snow” featuring Fawaz A Alhokair & Co, Tesco and Aldo Group Thursday 14 November, 15.15-16.00 – Champs-Elysées room

THE RISE AND RISE OF LUXURY RETAIL

Inditex continues to expand across the globe with its range of different fascias.

online presence, but they are also investing in new store openings and their existing stores.”

It’s perhaps not a surprise given the economic troubles in their domestic markets that Italian and Spanish brands are the most international-minded. JLL mapped the presence of cross-border retailers in 57 European retail markets, and it found that Italy is the number one exporter of retail fascias. Benetton and Diesel are the most international Italian retailers, with strong coverage across the 57 markets but luxury brands like Max Mara and Emporio Armani are also well represented in all the key markets.

However it’s Spain’s Zara that tops the coverage league.

Inditex’s flagship brand is the only retailer with 100% coverage across all the key European markets reviewed by JLL. From a standing start in 1975 the Inditex group has grown to operate more than 6,000 stores in 86 markets across the Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home and Uterque brands.

As one of the pioneers of ‘fast fashion’, Inditex’s phenomenal growth has been built on two pillars — firstly it insists on knowing exactly what its customers want and secondly it has the mechanism to deliver this quickly and efficiently through the vertical integration of manufacturing, distribution and marketing. Only in what it describes as “smaller or culturally different markets” will it consider franchise agreements with leading local retail companies, so out of the 6,000-plus stores only 763 are franchised.

But franchisees are warned: “The main characteristic of the Inditex franchise model is the total integration of franchised stores with own-managed stores in terms of product, human resources, training, window dressing,

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interior design, logistics optimisation, etc. This ensures standardised store management practices and a global image from the viewpoint of customers worldwide.”

CBRE’s annual survey entitled How Global Is The Business Of Retail? maps the global footprint of 320 of the world’s top retailers across more than 200 cities, tracking cross-border retailer movements. The 2013 edition found that London retains its number one position with the greatest representation of international retailers, with Dubai still comfortably in second place. Paris moved up one place to third, replacing New York which is now in fourth place along with Moscow. Hong Kong and Madrid remained in sixth and seventh place respectively.

The most significant mover was Beijing, which moved up to eighth place from 13th.

Why is London so appealing? Alan Spencer, CBRE’s senior director of Central London retail explains: “London continues to attract international and luxury retailers due to its ‘safe-haven’ status.” But he warns the city should not take its status as the retail destination of choice for granted. “With a lack of prime locations available retailers are expanding into more niche off-prime locations. If London can continue to respond to this demand by providing quality space and an attractive environment for shoppers to come, then the signs remain very positive.”

At a sector level, CBRE found that mid-range fashion retailers entered more new markets than any other sector last year, accounting for 22% of all new openings, followed by ‘luxury and business fashion’ retailers on 20%. Coffee shops and restaurants, accounting for 13%, is another growth area, as international retailers expand to meet consumer demand for entertainmentbased retail.

NEW RESEARCH from Jones Lang LaSalle charts the rise and rise of luxury and asks why the global luxury market has remained relatively sheltered from the economic crisis.

Despite a short period of slower sales in 2009, the market bounced back in 2010 and continued to flourish throughout 2011 and into 2012.

And James Brown, JLL’s head of retail research and consulting for EMEA, notes that this is a global phenomenon: “While economic uncertainty has deterred most global middle-income shoppers, affluent Western shoppers have flocked back to the luxury brands, which together with economic growth in the BRIC nations and an insatiable appetite for luxury goods in the Far East, has driven growth in the luxury goods market globally.”

Retail expert Verdict values the global luxury goods market at €320bn. And it expects this to grow to around €390bn by 2015. Europe remains the largest luxury goods market at over €90bn. However, it forecasts Asia Pacific will experience unprecedented growth over the next five years, rapidly closing in on Europe’s number one position.

By 2015, Asia Pacific’s luxury goods market is expected to be valued at €112bn, up 92% on today’s valuation.

From Tiffany in Paris to Versace in Shanghai, luxury retail growth has been driven by insatiable demand from Asia.

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i FEATURE RETAIL AT MAPIC

Shopping around MAPIC 2013 will host more than 1,400 retailers from global giants to exciting startups. Mark Faithfull picks up on some retail trends and Graham Parker takes a look at just a few of the brands that will be using their three days in Cannes to drive their expansion plans

T

HE retailers coming to MAPIC tend to reflect the changing priorities, geographies and ascending categories in the global industry and this year should be no exception. There are lots of new names — proving that the entrepreneurs have not all headed online — lots more food and beverage brands and more companies looking to expand across a series of markets.

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MAPIC has become a familiar hunting ground for the US brands, while retailers targeting emerging markets and those emanating from the emerging nations will also be rubbing shoulders. The new names and startups are always of interest and among the many new retailers at MAPIC this year is Stone by Stone, which opened its first store in 2002 in Lisbon. Combining a unique knowledge

RELATED CONFERENCES DURING MAPIC “Innovation into retail’s world: facts & figures” Wednesday 13 November, 10.00-10.45 – Oxford room “Retail Keynote Address” by Janusz Kulik, member of the board, REWE International Co-organiser: RegioPlan Consulting Wednesday 13 November, 12.00-12.45 – Oxford room

“Middle East Miracle”. Co-organiser: RLI Wednesday 13 November, 14.30-15.15 Champs-Elysées room “Investing in Turkey – The international retailer perspective” Thursday 14 November, 9.30-10.15 – Oxford room

tracksuits and swimsuits. Dagi was first in the Turkish market to put underwear in canisters, as well producing home leisure wear that could also be worn outside.

The company’s expansion has been focused on Eastern Europe and the Gulf, and its stores can also be found in Algeria, Cyprus, Lebanon, Kazakhstan, Iraq, Azerbaijan and Saudi Arabia. It is looking at further locations for new stores.

Toyzz Shop opened its 100th store in 2013, and currently operates in 29 cities within Turkey, with 30 stores in Istanbul. Toyzz Shop stores are known for their fun shopping environment, with quality, intelligent toys for all ages.

Launched in April of this year, shoe retailer Praiaz is the result of a French and Brazilian partnership, with the brand name derived from the Portuguese word “praias”, meaning “beaches”. Praiaz offers all-terrain beach shoes for running, swimming and dancing, yet smart enough for a night out on the town. The company has launched in 12 countries and has opened a flagship store in St Tropez, while it is also available at the Paris-based Merci store.

US retailers continue to visit MAPIC in growing numbers and Abercrombie & Fitch will once again be in attendance. The company ended the second quarter with a total of 1,057 stores, including 285 Abercrombie & Fitch stores, 150 Abercrombie Kids stores, 594 Hollister Co stores and 28 Gilly Hicks stores. During fiscal 2013, Abercrombie intends to open a flagship store in Seoul and nearly 20 international Hollister stores. It also plans to shut down 40–50 domestic stores. Victoria’s Secret has opened three UK stores plus an airport store, with plans for a fourth British store before the end of the year.

Meanwhile, in its latest figures Foot Locker matched analysts’ revenue forecast, something that many retailers haven’t been able to do. Sales increased 6.4% to $1.45bn.

The retailer operates 3,335 stores in 23 countries across its fascias and is looking at London sites for its Kids Foot Locker stores. “Sales in the second quarter were more challenging than we planned for, especially in the United

On the up: H&M expanding into Africa

of stones and their origins, through numerous trips across the globe, the jeweller now has 15 stores and is strongly established in Lisbon and Oporto. In the short term, its expansion plans to strengthen its position will soon bring the total number of stores in Portugal to 20.

Swedish fashion brand Rut & Circle was launched as recently as 2007 as Rut m.fl and moved beyond its domestic market two years later. The company was renamed last year and is now present in 300 stores worldwide, with its own stores in Sweden and with new deals signed in the UK and Belgium last year.

Turkish retailer Dagi has established itself in the readymade garment sector, offering underwear, pyjamas,

COMDIFIL is a Spain-based fashion retailer that prides itself on vertically integrating manufacturing, distribution and retail. Sounds like Inditex? Well sure enough, it started as a manufacturing division of Inditex before it was subject to a management buyout in 1995. It is now focussing on two brands — Shana and Double Agent. Shana is currently present in most of the main markets worldwide with 250 stores in 35 countries and is considered a leader in fast fashion and a pioneer in value retail. It typically trades from stores of around 400 sq m.

Double Agent was launched in 2013 as a new fashion concept themed around the Californian lifestyle in a clean and relaxed environment. It aims to combine creative American designers with great attention to detail and European quality. It occupies a smaller footprint than Shana, with stores typically trading from 200 sq m.

“Both concepts, Shana and Double Agent, will be developed through own-operated stores, through franchised mono-brand stores in shopping malls and high streets and also through different online platforms,” says international representative Carla Sanz Escola.

She adds that Comdifil will be using MAPIC to source new franchise partners in Europe, Asia, the Caribbean and Africa. “We’re looking for partners to co-operate and supply our group with deep knowledge and awareness of the local peculiarities of the targeted markets.”

www.mapic.com I preview magazine I October 2013 I 31

i FEATURE

CAUSSES is a convenience store inspired by ‘slow food’ values of quality, cleanliness and fairness which promotes specialist food producers. It also features a restaurant where customers can eat in or take away a short menu based on products sold in the shop. According to founder Alexis Roux de Bezieux the mission of the brand is to transform food purchase from a pain to a pleasure and it aims to provide a separate destination between home and work.

The first store in Paris has turned out to be a real convenience store, with 90% of the customers living no further than 150 to 200 metres from the shop. Roux de Bezieux says it is very different from its existing competitors due to its small size, its offer featuring 170 different providers, its architecture and the training of its staff.

“The concept is at the boundary between a small family business and a supermarket,” he says. “It tries to take the best from the multiples, their processes and organisation — and the best from independents, their passion and their know-how.”

A second shop has already been signed in Unibail’s forthcoming Forum des Halles in Paris which is due to open in the second half of 2014 and Roux de Bezieux says the aim is to develop sites of 200 to 300 sq m, first in Paris, then in the rest of France and in the future in the rest of the world. “The development will be conducted mainly through the company’s owned stores. International development will be probably made with local partners,” he says.

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Shopping around

States,” CEO Ken Hicks says. “Despite this headwind, we produced second-quarter ongoing profit and sales results that were our best ever.”

Outdoor brand Timberland is set to open 50 shop-inshops and branded areas in branches of Karstadt across Germany. Dependent on the branch, fashion or footwear collections will be available. The kick-off for the co-operation between Timberland and Karstadt Warenhaus was the opening of the Dusseldorf pop-up store, inaugurated on September 4, concurrent with the Feel London campaign.

Another expanding brand is Victoria’s Secret, the lingerie arm of fashion retailer The Limited. Present in Europe, the company opened its second largest global flagship in Vancouver, Canada at the end of August.

European expansionists will also be out in force, especially those on a global mission, including Spanish brand Desigual which opened in the Philippines in August, and Galeries Lafayette, which also intends to pursue its international development with an ambitious store-opening programme in Jakarta, Beijing, Doha and Istanbul.

Galeries Lafayette is pursuing an ambitious store-opening programme

i FEATURE

Shopping around

THE FAMOUS BELGIAN CHOCOLATIER GODIVA — a MAPIC Award sponsor again this year — started as a family-run business in 1926 and opened its first shop in Brussels in 1946. Its global expansion began in 1958 with a boutique on the prestigious Parisian street Rue Saint-Honore, followed by several openings in North America and a boutique in a Tokyo department store.

Its presence grew to around 80 countries worldwide, including Turkey and China, and now the company has over 600 stores globally. Current retail development plans include expansion across the Middle East, North Africa and Turkey, China, Pacific Rim, and also in Europe.

Godiva has developed a unique range of retail concepts from pop-up kiosks to large format, flagship stores along with Godiva Chocolate Cafes, to provide a relevant retail proposition for a wide variety of locations and retail customers. Additionally Godiva has a dedicated travel retail team to support the growth of the global travel retail business.

“Boosted by the image of Haussmann, the retail outlets we are opening beyond our borders are showing very encouraging results (up 45% for Dubai, up 14% for Berlin). They prove the brand’s potential on international markets. In total, five to seven new Galeries Lafayette stores will be opened internationally by 2015, says Paul Delaoutre, CEO of the department store division.

Swedish fashion powerhouse H&M will also be at MAPIC and apart from its latest & Other Stories brand, chief executive Karl-Johan Persson was able to announce in August: “We are very excited to announce the opening of an H&M store in South Africa. We see great potential for further expansion in this region. We look forward to bringing fashion and quality at the best price to the customers in South Africa.” H&M has also opened in Serbia.

Food and beverage retailers will also be highlighting their offer at MAPIC. Sandwich specialist Subway opened its 40,000th outlet recently at a petrol station in Suffolk, UK and plans to add another 10,000 by 2017.

Starbucks has entered into a new agreement with Google to provide a higher-speed Wi-Fi offer

President and co-founder Fred DeLuca, who opened the first shop in Connecticut in 1965, said: “This is certainly a testament to the dedication and hard work of the entire Subway team, whom I often refer to as the greatest team in franchising history.”

Starbucks recently announced the selection of Google to provide the next generation of its Wi-Fi offering for its customers. Beginning in August, company-operated

ROSA CLARA is the fasting growing brand in the bridal and evening dress business. The company was created in 1995 by Spanish designer Rosa Clara and has over 140 exclusive stores in more than 25 countries. The brand has a very successful retail concept aiming to provide an exclusive shopping experience where brides will find a dress that incorporates trends, fine fabrics, quality, craftsmanship and the elegance of the luxury bridal brand.

According to business development director David Braina Bou, the company has developed strongly in Latin America and the Middle East and is now targeting the rest of the world, especially Eastern Europe, Central Asia and Africa.

Typically Rosa Clara stores are located in the main high streets of each country’s capital as well as main regional cities.

Stores need a minimum sales area of 150 to 200 sq m. And to show off the product at its best, big shop windows are a must.

“Rosa Clara operates a franchise business model, partnering with major retail operators to expand its retail concept in order to catch the changing shopping habits of the modern bride,” Braina Bou says. “Modern brides want exclusivity, quality and fantastic service, and this is what they find in a Rosa Clara boutique.”

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Connecting Real Estate

i FEATURE

Shopping around

Starbucks stores began to receive up to 10 times faster network and Wi-Fi speeds. Over the next 18 months, Starbucks will convert more than 7,000 US stores to the upgraded Wi-Fi. Cibiamo Group with its brands Cibiamo and La Bottega del Caffe, has bars and restaurants in malls all over Italy and in the train stations of the main Italian cities and in some of the major airports. Thanks to an agreement with Centostazioni, Cibiamo Group is currently opening in small and medium Italian train stations with the Cibiamo brand and the Cibiamo Station brand. Cibiamo Group also has a collaboration with the Virgin Fitness Group and is present in its fitness centres and gyms with the V-cafe brand.

The company says the new challenge is to “conquer the foreign markets” and La Bottega del Caffe has opened in London in two locations with a format adapted for the UK market.

FINSBURY has established itself as the most dynamic brand in the French shoe market. With a reputation for quality — both of the product and the store fit-out — it has transformed the traditionally fragmented market for mens’ business shoes. Secure in its home market, 2013 is the year it has targeted for its first foray into international markets.

Retail property director Antoine Guillorit says: “We will sell approximately 180,000 pairs of shoes in 2013, making us number one in the French handcrafted shoes market. Now, our objective is to implement Finsbury abroad.”

Guillorit’s main targets are Asia, the Middle East and Russia. “I really want to get two shops in each area by the end of 2014,” he says. “In Asia that means Hong Kong and Shanghai; in the Middle East Dubai, Abu Dhabi or Beirut and in Russia Moscow and St Petersburg.”

And Guillorit says master franchisees are the key to achieving this. “The only way in which we are confident is to get a strong master franchisee who has the financial strength and retail skills to develop the brand in its whole market over a 10-year development plan,” he says.

In that 10-year timeframe he expects East Russia to provide 10 shops, the UAE and Lebanon eight and Hong Kong and China 20. “Our stores have an average floor of 40 to 50 sq m plus 30 sq m for the stock room.

The frontage should be at least 7m,” Guillorit explains.

36 I

preview magazine I October 2013 I www.mapic.com

Subway president and co-founder, Fred DeLuca: the Subway team is “the greatest team in franchising history”

CARREFOUR is bringing its property division to MAPIC to power its drive into new territories, with a focus on France, Spain, China, Brazil and Turkey. Outside its core mature European markets, the French grocer operates 1,650 sites with 6.2 million sq m of sales space. And as well as a retailer it is a major developer and manager of shopping malls with 1.6 million sq m of GLA in Argentina, Belgium, Brazil, China, India, Poland, Romania, Taiwan and Turkey.

The company is looking to leverage the unique insights that come from its status as both a retail and real estate leader. The 360-strong in-house real estate team at Carrefour describes its mission as ‘Create Commercial Vitality’ — a mission driven by its retail culture, by its close involvement with all real estate parties, and by its commitment to ensuring that the customer is central to its philosophy.

Among the projects to be Drive: Innovation at Carrefour showcased at MAPIC is Carrefour Chambourcy in France, described as “a centre with a taste of nature.”

Carrefour Chambourcy is already a highly popular shopping destination with a bold architectural style.

Now, the mall is being renovated and extended in the style of a garden from a Magritte painting with an 8,000-sq m green roof. It features a varied selection of stores, as well as a fun customer path that has been completely redesigned.

Not to be missed!

New segments at MAPIC TRAVEL RETAIL

MAPIC, where retailing and transport hubs merge Discover travel retail opportunities during dedicated pitching sessions hosted by A2C (SNCF), Transport for London,... and gain insight from transport hub retailers, owners, operators and developers.

Wednesday 13 and Thursday 14 November from 14.30 to 16.00, Lerins Room

RETAILTAINMENT

Meet retailtainment key players Culture, leisure and entertainment play a crucial role in modern day shopping centres’ strategies. Meet retailtainment players in our dedicated area at Riviera level and on level -1.

Brunswick s Dedem Automatica s KCC Entertainment s Kidburg s MADEAconcept s QubicaAMF s Replay s RP Solutions s Walltopia

MAPIC INNOVATION FORUM

Discover the most innovative technologies and solutions at the MAPIC Innovation Forum Attend insightful conferences, meet speakers and discover the most innovative technologies and solutions that are shaping the future of shops and shopping centres.

Sponsored by

CyKOMM s EuropaCity s EuroCSgroup s Fidzup s EMA Evenements

PROGRAMME OF CONFERENCES & EVENTS GAIN UP TO DATE MARKET INSIGHT ON TRENDING TOPICS AND NETWORK WITH THE INDUSTRY LEADING DECISION MAKERS. Discover the 2013 programme of conferences and events.

MEET SOME OF THIS YEAR’S TOP INDUSTRY SPEAKERS

Marcus Chipchase, Managing Director, F&F Global Partnerships Tesco (United Kingdom)

Norman Jaskolka President, Aldo Group (Canada)

Janusz Kulik Member of the Board, Rewe International (Austria)

Brendan Dorrian, Personal Envoy to the Chairman & Head of Business Development, Fawaz A. Alhokair & Co. (Saudi Arabia)

Philippe Starck* President, Philippe Starck Design (France) *Introducing the Bacacier 3S project

Vineet Arora, CEO, Jamilco Group of Companies (Russia)

Ishwar Chugani, Managing Director, Giordano (UAE)

Sean Curtis, Head of Business & Brand Marketing, Retail, Land Securities Properties (UK)

Ronald Dasbach, Managing Director, Multi Development Central and Eastern Europe (Czech Republic)

Bart Dohmen, Managing Director, BRC Imagination Arts (Netherlands)

Dr. Xi Feng, Senior VP of Horizon, President of hi-GPD, Horizon Research & Consultancy Group (China)

Jean-François Gomez, Senior Innovation & Business Development Manager, Microsoft (France)

Frederik Kramer, General Manager Real Estate and Expansion, VAN GRAAF/ Peek&Cloppenburg (Germany)

Pietro Malaspina, President, CNCC Italy, Director, Sierra Italy (Italy)

Brandon O’Reilly, Managing Director, Fashion House Group (Poland)

Emmanuel Pottier, Strategy, Innovation and New Media Director, Clear Channel (France)

Guillaume Rio, Technology Trends Manager, Echangeur by Laser (France)

Carmine Rotondaro, Real Estate Director, Kering (France)

Martin Sabelko, Managing Director CEE, CBRE Global Investors (Czech Republic)

José Baeta Tomás, CEO, Sonae Sierra Brasil (Brazil)

Khurshid Vakil, Co-Founder, Marina Home (UAE)

Luiz Fernando Veiga, President, ABRASCE, Associação Brasileira de Shopping Centers (Brazil)

Ronald Verwoerd, Business Development Director, C&A (China) Co. (China)

Darin Vest, Director of Global Real Estate, Tiffany & Co. (USA)

Eduard Zehetner, CEO, Immofinanz AG (Austria)

For updates, please visit www.mapic.com

MAPIC INNOVATION FORUM

FOOD & RETAILTAINMENT In the wake of online competition, many savvy developers and shopping centre operators now perceive a major opportunity to increase footfall by rebranding the shopping centre as an event space that encourages the public to stay longer (and buy more) while visiting the mall. Events can be focused on culture, leisure, education…

Sponsored by:

Increase footfall and retail property value at the MAPIC Innovation Forum, located on the Lerins Level. Attend insightful conferences, meet speakers at their demostations, and discover the most innovative technologies and solutions that are shaping the future of shops and shopping centres.

Therefore, in 2013, several exhibitors specialised in retailtainment will be ]Wj^[h[Z _d W Z[Z_YWj[Z Wh[W Wj j^[ H_l_[hW b[l[b$ The challenge now for those involved in retail real estate business is to redefine the idea of the shopping centre, and provide an enhanced customer experience.

LERINS HALL 4 main themes: Ckbj_Y^Wdd[b H[jW_bjW_dcd[dj Fef#kf i^efi <eeZ WdZ 8[l[hW][ Content partner: Invalio

MATCHMAKING EVENTS: DISCOVER PROJECTS, RETAILERS & MAKE FAST CONNEXIONS Photo credit: Image&Co

MAPIC Speed Matching sessions

MAPIC DIGITAL SUMMIT Off and On-line Convergence: Using Digital Tools as Means By invitation only The MAPIC Digital Summit, now in its second edition is aimed at bridging the gap between retail real estate key players and the increasing digitalization of their businesses.

For the first time and after a Learning and Discovering session about these new tools, participants will go deeper into the topic with case studies moderated by industry experts. Three main topics will be WZZh[ii[Z0 H[jW_b[hi" I^eff_d] 9[dj[hi WdZ I^eff_d] _d 9_jo 9[dj[hi$ The Summit will close with a wrap-up session and a special keynote on the future of retail.

MAJESTIC HOTEL

Spark deals, foster partnerships and explore opportunities as top retailers and property developers (selected by our jury) present their exciting new projects and ideas during a series of unique 7-minute presentations, each followed by an informal networking coffee break.

OXFORD ROOM, LEVEL -1, AISLE 11 WEDNESDAY & THURSDAY, 15.30 TO 17.30

MAPIC Power Meetings Pre-registration required Join your future partners in one place, at one time and launch new opportunities from a handshake with the right peer. From table to table during 45 minutes, help accelerate deals with 10 potential partners during efficient 3-minute face-to-face speed meetings: - Investors meet developers - Master Franchisees meet retailers - City centres & shopping centres owners and managers meet retailers.

LERINS ROOM, LERINS HALL

MAPIC Speed Matching sessions

MAPIC Power Meetings

Photo credit: Image&Co Photo credit: Image&Co

RETAIL IN TRANSPORT HUBS

MAPIC AGORA

:_iYel[h iec[ e\ j^[ \Wij[ij ]hem_d] h[jW_b effehjkd_j_[i m_j^ H[jW_b in Transport Hubs. See how retailers and developers are turning airports, harbours, train stations, gas stations and other public transport networks into prime shopping destinations for travelers and non-travelers alike.

LERINS ROOM, LERINS HALL

Photo credit: Image&Co

Come and visit our Agora where MAPIC exhibitors showcase their company, projects or destinations. Don’t miss out on these ideal opportunities to identify potential partners.

LEVEL -1, AISLE 08

RETAIL RISING STARS In 2013, Mapic will shine a spotlight on four of the world’s most promising retail markets: Brazil, China, ?dZ_W WdZ Hkii_W$ J^[i[ jef Z[ij_dWj_edi \eh h[jW_b [nfWdi_ed m_bb X[ h[Ye]d_i[Z j^hek]^ W Z[Z_YWj[Z programme of conferences and events.

AT-A-GLANCE PROGRAMME OF CONFERENCES & EVENTS TUESDAY 12 NOVEMBER 13.00 18.00

Digital Lunch & Digital Summit Off and on-line convergence using digital tools as means Industry Partners: Convergence CVL and Invalio - Research Partner: CBRE Content Partner: Echangeur by Laser - Media Partners: Sites Commerciaux and Property Week By invitation only MAJESTIC HOTEL

MAPIC Opening cocktail 19.30

Sponsored by: MAJESTIC HOTEL

WEDNESDAY 13 NOVEMBER Oxford room Level -1, Aisle 11 08.00 - 10.00

Lerins room Lerins Hall

MAPIC Innovation Forum Lerins Hall

10.00 10.45

facts & figures

10.45 - 11.00 11.00 - 11.15 11.15 - 11.30 11.30 - 11.45

Creativity for new challenges

Secondary 11.00 shopping centres identifying 11.45 the winners

11.00 into your shopping centres 11.45 Co-organiser: Universcience

Co-organiser: CBRE

11.00 12.00

Power Meetings

10.00 12.30

Investors/Developers

12.30 - 12.45

RETAIL KEYNOTE ADDRESS BY: Janusz Kulik, 12.00 Member of the Board, 12.45 REWE International AG

12.45 - 13.00

Co-organiser: RegioPlan Consulting GmbH

12.15 - 12.30

13.00 - 14.00

A new session every 30 minutes 4 themes: - multichannel - retailtainment - pop-up shops - food & beverage

11.00 11.45

The estate of luxury retail worldwide

14.00 14.45

Co-organiser: Cushman & Wakefield

Middle East Miracle

14.30 15.15

14.30 16.00

15.30 - 15.45

16.00 - 16.15

15.30 16.30

Speed Matching Discover 5 shopping centre projects

Pitchings Travel Retail

Master franchisors: the gateway to Russia 15.30 for international retailers 16.15

14.30 17.30

Content partner: Impress Media

16.15 - 16.30 16.30 - 16.45 16.45 - 17.00 17.00 - 17.15

16.30 17.30

Speed Matching Discover 5 retail concepts

Council of Shopping Centres

17.45 - 18.00 18.00 - 18.15

Organiser: Russian Council of Shopping Centers

15.00 15.45

Client session

North American retail real estate: 16.00 successful recession survival strategies

16.45

Co-organiser: Talbot Consultants International Inc.

Conferenza stampa CNCC Italy Awards 17.00 2013 / CNCC Italy Awards press 17.45 conference 2013

New retailers’ cocktail 17.00 18.00

New opportunities for travel retail: 17.30 emerging passenger groups and the case 18.15 for accessible luxury

A new session every 30 minutes 4 themes: - multichannel - retailtainment - pop-up shops - food & beverage Content partner: Invalio

What’s new in Russia: the advanced strategy of 16.30 investment overview 17.15 Co-organiser: Russian

17.15 - 17.30 17.30 - 17.45

Russia Connection 2013

Co-organiser: RLI

15.15 - 15.30

15.45 - 16.00

By invitation only

Client session

Lunch

14.30 - 14.45

15.00 - 15.15

Retailers’ Happy Hour 11.30 Sponsored by 12.30

12.00 12.45

13.00 14.00

14.30 15.15

The presentation of a trade and business cluster Aero Park City

Content partner: Invalio

14.00 - 14.15

14.45 - 15.00

Client session

Organiser: Aero Park

Pre-registration required

11.45 - 12.00 12.00 - 12.15

Other venues

Pre-registration required

Innovation 10.00 into retail’s world: 10.45

10.30 - 10.45

Agora Level -1, Aisle 08

Welcome Meeting

8.00 9.15

10.00 - 10.15 10.15 - 10.30

Champs-Elysées room Level -1, Aisle 11

Sponsored by

Organiser: CNCC Italy By invitation only

Co-organiser: Frontier Magazine

18.15 - 18.30 19.30

Russian Collection Dinner 19.30

Organiser: Impress Media By invitation only SALON DES AMBASSADEURS, PALAIS DES FESTIVALS

Programme as of 27 September 2013, may be subject to change.

Turkey Shopping Centres Dinner Organiser: Council of Shopping Centres - Turkey By invitation only

19.30 MAJESTIC HOTEL

BUSINESS LOUNGE

Retail & retail innovation Specific & new segments Gateways to new territories Retail & cities

')#'+ DEL;C8;H (&') Palais des Festivals Cannes - France www.mapic.com

Interactive format Speed Matching Interactive format Power Meetings MAPIC Events Client conferences & events

THURSDAY 14 NOVEMBER Oxford room Level -1, Aisle 11

Champs-Elysées room Level -1, Aisle 11

Lerins room Lerins Hall

MAPIC Innovation Forum Lerins Hall

Agora Level -1, Aisle 08

08.30 - 09.00 09.00 - 09.15 09.15 - 09.30 09.30 - 09.45 09.45 - 10.00 10.00 - 10.15

9.30 Investing in Turkey The International 10.15 Retailer perspective

10.45 - 11.00 11.00 - 11.15

10.30 11.15

The logistics of E-commerce

Co-organiser: Images

Global overview of the Chinese retail market - where are the opportunities?

11.15 - 11.30

11.45 - 12.00 12.00 - 12.15 12.15 - 12.30

11.30 12.45

Pop-up culture?

How culture and retail paradigms marry to attract shoppers Co-organiser: Lordculture

12.30 - 12.45 12.45 - 13.00

retail together

11.15 12.00

Co-organiser: Cushman & Wakefield

Power Meetings 10.30 City centres & shopping centres owners and 11.30 managers / Retailers Pre-registration required

11.30 12.30

10.00 12.30

A new session every 30 minutes 4 themes: - multichannel - retailtainment - pop-up shops - food & beverage

métallique du bâtiment Organiser: Bacacier3S

Content partner: Invalio

Master Franchisees / Retailers

13.30 - 13.45

Lunch

Brazilian Cocktail

13.00 14.00

Co-Sponsored by Sonae Sierra

By invitation only LEVEL 01,STAND 15.20

Retailers’ Happy Hour 11.00 12.00

Sponsored by

BUSINESS LOUNGE

Client session Asia Lunch 12.30 13.30

13.00 14.00

Indian Breakfast at the Indian Pavilion

By invitation only

11.45 13.00

Sponsored by Sonae Sierra

13.00 14.00

9.15 10.15

Keynote address 11.00 by Philippe Starck Réinventons l’habillage 11.45

Organiser: Impress Media By invitation only MAJESTIC HOTEL, SALON CROISETTE

Sponsored by Cushman & Wakefield

Power Meetings Pre-registration required

International retailers: 12.15 how to penetrate 13.00 the Brazilian market

As Central Europe becomes a more 10.00 developed market, where 10.45 are the opportunities?

13.00 - 13.15 13.15 - 13.30

Russian Breakfast 8.30 12.00

Organiser: Immochan

Opportunities for global retailers in India

10.15 11.00

Co-organiser: CBRE

11.30 - 11.45

9.00 le commerce / 9.45 Immochan: developing

Co-organiser: CBRE

10.15 - 10.30 10.30 - 10.45

Immochan : Ensemble, développons

How we shop changing 9.00 demographics of 10.00 Europe’s consumer

Other venues

Sponsored by By invitation only CARLTON HOTEL, SALON LA CÔTE

Lunch

13.45 - 14.00 14.00 - 14.15 14.15 - 14.30 14.30 - 14.45 14.45 - 15.00

14.15 15.15

15.00 - 15.15

Redefining retail places Co-organiser: Jones Lang LaSalle

The rise of 14.15 gourmet food 15.00 Co-organiser: Coverpoint KEYNOTE PANEL ON MASTER FRANCHISE “Sand & Snow”

15.15 - 15.30 15.30 - 15.45 15.45 - 16.00 16.00 - 16.15

15.30 16.30

16.15 - 16.30

Speed Matching Discover 5 shopping centre projects

16.30 - 16.45 16.45 - 17.00 17.00 - 17.15

16.30 17.30

Speed Matching Discover 5 retail concepts

15.15 - B.Dorrian, Fawaz 16.00 A. Alhokair & Co. - M. Chipchase, Tesco - N. Jaskolka, Aldo Group

Retail in the City: the growing 16.15 involvement of cities in retail growth 17.00 Co-organisers: TOCEMA & TCM Italia

17.15 - 17.30 17.30 - 17.45 17.45 - 18.00

17.00 18.30

18.00 - 18.15 18.15 - 18.30

Italy: the will to restart

Rénovation des gares et projets commerciaux : 14.30 de nouvelles 15.00 opportunités pour des enseignes inventives Organiser: A2C

London Underground 15.30 the next 150 years

16.00

14.30 17.30

Organiser: Transport for London

Assessing Organiser: CBRE Global Investors

Sponsored by

17.00 17.45

Followed by a networking coffee break

Client sessions A new session every hour

the impact of 16.00 multi-channel retail 16.45

Content partner: Invalio

Brazil projects pitching session 16.30 17.15

A new session every 30 minutes 4 themes: - multichannel - retailtainment - pop-up shops - food & beverage

14.00 16.00

Just Under The Sky, the new generation shopping centre in Brussels, started construction...

And its new name.

Retailers’ Happy Hour 17.00 Sponsored by 18.00

Organiser: EQUILIS

Co-organiser: CNCC Italy

18.30 - 20.00 20.00 - 23.00

19.30 22.30

MARTINEZ HOTEL, SALON GALUCHAT

22.30

MARTINEZ HOTEL

MAPIC Awards Gala Dinner and Prize giving Book a seat/table for the evening MAPIC Party

FRIDAY 15 NOVEMBER MAPIC Innovation Forum Lerins Hall 10.00 12.30

A new session every 30 minutes 4 themes: - multichannel - retailtainment - pop-up shops - food & beverage

Programme as of 27 September 2013, may be subject to change.

Content partner: Invalio

By invitation only BUSINESS LOUNGE

Agora Level -1, Aisle 08 10.30 11.30

MAPIC final press conference

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The International Property Report The Wall Street Journal Property Report offers a monthly overview of commercial real estate in a leading international market. Take advantage of this expanded coverage to strategically position your company, properties or services in the global real estate marketplace.

For more information please contact: 5RE 0RQDJKDQ Europe T+44 (0) 207 572 2124 Robert.Monaghan@wsj.com

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FEATURE

Zones CONTENTS A corner turned Five years on from the crash, the retail world has repositioned

44

EMEA: Back in zone Cautious recovery signals growth prospects for Europeâ&#x20AC;&#x2122;s markets

48

Asia: City schemes scaled for new retail 61 More Asian markets are expanding their retail offer as international brands arrive Americas: Local heroes Falling vacancy rates and fresh development are reinvigorating the US and Canada

65

www.mapic.com I preview magazine I October 2013 I 43

i FEATURE

Luxury offer: Karl Lagerfeld, Paris

THE GLOBAL RECOVERY

A corner turned The global retail real estate sector is being driven forward by growing liquidity and a mix of mature and emerging markets. Mark Faithfull looks at how 2013 might influence next year’s performance

T

HOSE who were at MAPIC 2008 probably did not envisage that it would be as long as MAPIC 2013 before genuine, albeit modest, confidence would return to the retail sector.

In those five years, the retail axis has also shifted, as is reflected in MAPIC’s coverage this year. The Rising Stars of Brazil, Russia, India and China have become increasingly important retail markets, although each of those territories has experienced a few bumps along the road — and each provides sharply different opportunities and challenges. These are examined in our special supplement and a host of events, conferences and networking opportunities will be dedicated to the four Rising Star markets in Cannes.

In that same period, consumers from the Rising Star countries have also become increasingly important, both to their domestic markets and, most notably, to sales across the global luxury sector. Cities such as Paris, Milan, London, New York and Milan have been particular beneficiaries of this global phenomenon.

The past five years has also seen the rise of e-commerce and its impact on retail real estate requirements has been profound. Retail categories such as consumer electronics, books, music and gaming have been

44 I

preview magazine I October 2013 I www.mapic.com

particularly hard hit, as is evidenced by the host of administrations among legacy retail names in these product areas.

However, there is a growing sense that much of the low-hanging fruit has been picked and that other categories will prove more robust. Instead, physical and digital are increasingly converging and, from the integration of digital within Land Securities’ Trinity Leeds through to the Marks & Spencer e-boutique in Amsterdam with its ‘virtual rail’ and Auchan’s pioneering work at enhancing click-and-collect through its various Drive formats, the two elements are coming together.

Indeed, the leveraging of non-traditional formats has also been a notable trend of the past five years.

Designer outlets have performed especially well during the years of austerity, while the retail sector has polarised towards value and premium/luxury. Travel hubs have become important retail destinations, and food and beverage, and leisure, have become vital pillars within any significant shopping centre.

Of course, the vital starting point for any new project or extension is financing. The retail property investment markets around the EMEA have been getting

i FEATURE busier this year, with €16.3bn traded in the opening six months — 31% more than the first half of 2012.

According to Michael Rodda, head of EMEA retail investment at Cushman & Wakefield, while the retail market is seeing more demand, finding the right quality and location of property is a major challenge for investors.

As a result, some are starting to look further afield, while others are contemplating taking on more risk — usually via development — or pushing up pricing to encourage vendors to come forward, Rodda says.

Investor demand is coming from a broad cross-section of the market, with good domestic institutional, REIT and private individual interest, but also more crossborder buying, with some of the larger global funds increasingly looking at retail as they diversify from capital-city office markets.

Rodda adds: “We are anticipating an increased flow of cross-border money into the retail sector and, in particular, more interest from Asian funds following the successful purchase by Allianz of Silesia City Center in Katowice, Poland, for €412m on behalf of a consortium that included Asian partners.”

Meanwhile, Australian, US and Canadian money continues to target Europe with, for example, AustralianSuper appointing Henderson to invest in European retail, the Canadian Pension Plan Investment Board (CPPIB) buying into more prime schemes, Blackstone eyeing European debt opportunities and Simon Property Group entering the European designer outlet market, building on its continental presence through its stake in Klepierre. There are many more examples of crossborder investment, mostly through partnering with local players and specialists.

M&S Amsterdam is the company’s first ‘e-boutique’

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preview magazine I October 2013 I www.mapic.com

A corner turned With a 32% market share, the UK remains Europe’s largest retail investment market. It has seen volumes rise 14% since the first quarter but 94% over the first six months compared to 2012. Significant transactions in the second quarter included CPPIB’s acquisition of a share in the Bullring in Birmingham.

Patterns of activity have varied market by market, however, as a function of the availability of the right stock for buyers, with almost as many markets seeing activity fall as rise year on year. Overall, it has been the largest markets boosting the sector’s numbers, led by the UK and Germany but with France, Sweden, Norway and Denmark all seeing a good increase on the first half of 2012.

“We are anticipating Some ma rket s that an increased flow of have been overlooked of late have also ralcross-border money lied well. For examinto the retail sector ple, interest was up in and more interest the first half of the year from Asian funds” in Greece, Ireland, Italy and Portugal, and Michael Rodda, C&W more deals are expected in the short term in Spain, as attractive pricing draws in investors.

The Nordics were strong again in the first half and there were also some notable transactions in Central and Eastern Europe — for example, Atrium’s acquisition of Galeria Dominikanska in Poland. And there is also real momentum building up in Iberia, where a surge in activity is predicted as rental re-pricing looks to have bottomed out and improving availability of finance appears to be on the horizon.

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i FEATURE

iStockphoto/Thinkstock

EMEA

Back in the zone Recovery may be cautious but, with the eurozone out of recession and investment volumes creeping up, sentiment is improving across the EMEA. Ben Cooper looks at the unfolding scenario across the region 48 I

preview magazine I October 2013 I www.mapic.com

S

INCE 2008, Europeâ&#x20AC;&#x2122;s retail scene has battled with a banking and finance crisis, loss of consumer confidence, the threat of online competition and a crash in real estate valuations. Yet despite these challenges, investment, development and asset management have re-emerged. Driven by the sense that the worst is finally over, MAPIC 2013 promises to see more European schemes come to the table.

Back in the zone five years is a long time when technology is changing so quickly and, since the crash of 2008, the industry and its consumers have moved on apace.

A report published earlier this year by Henderson Global Investors examining the effects of changing technology on retail property describes the “dramatic impact” that technology is having on the property model. It said: “Retailers are being increasingly selective and investors should be likewise. The growth in multichannel retailing is generating new retail formats that investors need to incorporate into their assets, and those that embrace the digital future should thrive.”

The effect, the report continued, is that an overall reduction in the number of traditional stores is now necessary to maintain investor interest in the sector — a cautionary note to those considering big builds in the coming years. Nevertheless, the figures are reason to be positive.

According to Cushman & Wakefield, in the second quarter of 2013, overall property investment activity was recorded at €32bn, the highest second quarter volume since 2007.

Unsurprisingly, investment was concentrated in the big three European markets — the UK, France and Germany — which attracted 62% of the overall investment between them. But interestingly, this actually represents a slip in overall market share by the core markets in favour of other sub-regions showing particular signs of growth. Cases in point are southern Europe, which saw a 94% increase in investment volumes from the previous quarter, and the Benelux region, which grew by 70% in the same period.

The strong performance of retail within the wider investment trends meant that Cushman & Wakefield reported €8.2bn of deals in the EMEA region during the second quarter of 2013 alone — a leap of 14% from the same period last year. Indeed, €16.3bn was traded in the first six months, 31% higher than the 2012 figure.

THE INVESTMENT STORY Although the storms in the global investment markets have by no means subsided, there are clear signs of a calmer period ahead. Investment volumes are up and, in Europe, the highest second-quarter rise in five years has been recorded.

Investors — deeply risk-averse since the crash — are showing some interest in secondary markets badly in need of capital injection, and most of the predictions are for more good news by the time the year is out. But

SPOTLIGHT: TURKEY ACCORDING to figures from Jones Lang LaSalle, Turkey beats all other European countries in shopping-centre development in the first half of this year, with a staggering 581,000 sq m of new space completed in just six months. And 2014 promises to be no less active, with an estimated 1.3 million sq m of shopping-centre space in the pipeline.

With so much under way, there are plenty of impressive examples of Turkish development. But one of the standout projects is Emaar Square, a major mixed-use scheme being built on the Asian side of Istanbul. Situated in Çamlıca, Emaar Square will cover 66,000 sq m and form a whole new neighbourhood of the city. As well as 1,000 luxury homes and a five-star hotel, Emaar Turkey’s scheme will also deliver the country’s largest shopping centre — the 150,000 sq m Emaar Square Shopping Mall.

Multi Development is also busy in Turkey, with one centre — Forum Gaziantep in Gaziantep, the country’s seventh largest city — due to open by the end of this year and another four in various stages of development. These projects, in Adana, Canakkale, Diyarbakir and Elazig, represent a major investment by Multi Development and will be responsible for delivering over 153,000 sq m of new retail space in Turkey.

The largest of the new schemes, Forum Diyarbakir, is taking shape in an ancient city on the crossroads between Asia and Europe. The new three-storey centre, located in the heart of Diyarbakir, will provide 80 new stores, restaurants and cafes, a hypermarket, a DIY store and an eight-screen cinema.

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i FEATURE The challenges in Europe and the EMEA as a whole might have slowed the pipeline for new builds, but to some they are an opportunity. New developments tend to grab the headlines but another approach — that of maximising the value of existing schemes through smart asset management, refurbishment and extensions — is not escaping investors.

One such is Gazit-Globe which, through subsidiary company Citycon, is carrying out a range of projects in northern Europe and the Baltics, either as the sole manager or through joint-venture partnerships. These include an expansion of the Iso Omena shopping centre in Espoo, Finland; the refurbishment of the IsoKristiina centre in Lappeenranta, also in Finland; and the signing of new tenants Debenhams and H&M to the Rocca al Mare centre in Tallinn, Estonia.

“There will be winners and losers in this, but the winners will emerge stronger than before”

Back in the zone SPOTLIGHT: BENELUX CONSUMER confidence remains the challenge throughout the Benelux region, but despite the climate, selective development projects are going ahead. One of these, currently under way in Brussels, is an ambitious plan to deliver the largest shopping centre in the Benelux region. The scheme, Uplace Brussels, will result in some 300 shops, bars and restaurants over 81,000 sq m of space, as well as office and leisure facilities located on the same site. Work is due to begin next year and be completed in 2016.

Dutch developer Wereldhave is particularly active in the Benelux, where it is carrying out a wave of new builds and extensions to its centres. Wereldhave has four projects on the go in Belgium, including redevelopments of centres in Genk and Waterloo, and is preparing possible refurbishment plans in the Dutch towns of Arnhem, Capelle aan den IJssel, Maassluis and Leiderdorp.

Wereldhave also has an extension and refurbishment programme under way at its only Finnish scheme, the 85,000 sq m Itis shopping centre in Helsinki. “Finland has proved a strong retail market and, at Itis, we are half way through a major renovation that will reformat the mall and also bring in new retailers,” says John Laker, chairman of Laker Developments, which is currently working with Wereldhave on the Helsinki project. “International names are starting to look more seriously at Finland,” Laker adds.

John Welham, CBRE

Marcel Kokkeel, CEO of Citycon, believes that only through establishing platforms in key cities can retailers fully exploit the strong consumer opportunity in the north of Europe. “Stockholm and Helsinki are enjoying extraordinary levels of urban expansion, which will continue for the next few years,” he says. “However, in order to benefit from consumer confidence and the urbanisation process, the region should be thought of as one market. This is why we have invested in Stockholm and Copenhagen, why we have a strong base in Helsinki and why we would also urge retailers to consider Tallinn as part of this wider market.”

Kokkeel also notes the importance of a Stockholm base: “For most retailers looking at the region, it is the gateway.

What we want to do is become the dominant player in this whole region and so we will look for further acquisitions and to develop our assets.”

According to Agneta Uhrstedt, secretary general of the Nordic Council of Shopping Centers, retail sales in Scandinavia fared relatively well throughout the recession. “In the past six months, however, the figures have been less positive, even though we still have a positive sales growth,” she adds. “The rest of the year is forecasted to pick up a little again. The sales also vary strongly in between the different merchandise groups. More specifically, I can say that traditional retail sales within shopping centres in Sweden grew 2.1% last year — more or less the same as total retail sales in the country — while sales in restaurants and cafes grew by 7.3% in the centres. This also 50 I

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Uplace Brussels, on course to be the largest retail centre in the Benelux region

PROJECT SKYLINE PLAZA, FRANKFURT, ECE HAVING opened in August, Skyline Plaza provides approximately 170 speciality shops, services and food outlets on a sales area of about 38,000 sq m on two sales levels. Various shop concepts have come to Frankfurt for the first time, such as the Inditex label Pull & Bear and the Italian brand Nero Giardini (footwear) with one of its first shops in Germany.

Other new concepts in the city are Mango Kids (KIKO), strellson, Frooters (frozen yoghurt, juices), Chipotle Mexican Grill (first shop in Germany) and the Osiander book store. Allianz took over 80% of the shopping centre on completion. The remaining shares will stay with the joint-venture partners ECE and CA Immo.

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i FEATURE shows the new focus of the retail mix we see in modern shopping centres.”

Overall, CBRE executive director John Welham, who heads up the retail investment group within the EMEA region, says there are signs of returning investor confidence, but that it is still prime assets that are taking the lion’s share. “Investment demand for prime is ver y strong at the moment.

Yields on prime shopping centres are at, or ver y close to, their cyclical low. In France, Germany, Switzerland, Austria and Nor way, y ields are at the bottom of where they have been going back 10 years, and they should start coming back in southern Europe pretty soon as well. There will be winners and losers in this, but the winners will emerge stronger than before.”

DEVELOPMENT PLANS Despite five years of currency turmoil and austerity in Europe, combined with a global freeze on lending, development is still taking place throughout the EMEA region and, in many cases, huge, ambitious projects are now under way.

The big story from the region remains Russia’s phenomenal surge in retail development, which shows no sign of slowing. According to figures from Jones Lang LaSalle’s European retail research department, in the first half of this year alone, 15 new shopping centres opened their doors in Russia, totalling 522,000 sq m. By the end of 2013, a further 900,000 sq m is set to have been rolled out — almost a third of the 11.9 million sq m to be built Europe-wide in the second half of 2013 and the whole of next year combined.

The research also shows that, at the end of next year — by which point, a further 2.5 million sq m are due — Russia will hold the largest shopping-centre stock of any nation in Europe.

Natalia Tischendorf, regional director and head of corporate finance at Jones Lang LaSalle, Russia & CIS, says: “We have 12 cities with a population of over one million, and every city with a population of over 1 million has space for three to four shopping centres. In some cities, there isn’t enough space for big shopping malls with a quality leisure infrastructure within. We are coming from a really low base level — stock is going to double in some cities.”

One such city, with a population of just over 500,000, is Yaroslavl, located 250 km northeast of Moscow, where developer ECE is preparing to roll out a major 60,000 sq m centre in December. With 230 shops over four levels, Aura is the largest scheme in ECE’s pipeline of centres throughout the EMEA. In Eurasia, too, huge strides are being made. In the Kazakhstan city of Almaty, the Dostyk Plaza mixed-use scheme is now under way. Meanwhile, developer MEGA is carrying out a major extension to its MEGA Alma-Ata shopping centre, which will almost double its overall size and bring in 120 new stores.

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SPOTLIGHT: CEE Compared with their more saturated Western European neighbours there are positive signs, according to Marcin Materney, sales director of Echo Investment’s shopping-centre department, which has seven key developments under way in the region. These include the 33,500 sq m Galeria Amber project in Kalisz, Poland and the first phase of the 110,000 sq m Mundo complex, which is taking shape in the Hungarian capital Budapest.

“I believe that, in the CEE region, there is still a place for new, large shopping malls,” Materney says. “The best example is Warsaw, where there is surely a place for at least two new shopping malls. In the future, when the economy improves, I believe tenants will also be more optimistic about small towns. These will open new opportunities for retail developers.”

Also under way is one of the biggest retail projects anywhere in the EMEA region — the major mixed-use scheme Respublika. Situated on a 1.63 million sq m plot on the outskirts of the Ukrainian capital Kiev, where KAN Development has been on site since last year, Respublika will comprise a new housing estate, 435 retail stores, two subway stations, a hypermarket, 50 restaurants and cafes, and a 22,835 sq m indoor amusement park, which will include an ice-skating rink, a skydiving wind tunnel, and a venue for live shows and concerts.

RELATED CONFERENCE DURING MAPIC “As Central Europe becomes a more developed market, where are the opportunities” Sponsored by Cushman&Wakefield Thursday 14 November 10.00-10.45 Agora room

Mundo Complex, taking shape in Budapest

PROJECT

RELATED CONFERENCE DURING MAPIC “What’s new in Russia: the advanced strategy of investment overview” Co-organiser: Russian Council of Shopping Centres Wednesday 13 November, 16.30-17.15 Champs-Elysées room

ELDON SQUARE, NEWCASTLE, INTU INTU has submitted a planning application to refurbish and redevelop two of the malls within Intu Eldon Square shopping centre in Newcastle. The proposal outlines intu’s plans to create a destination dining quarter, providing 21 new catering units within the current Sidgate and High Friars malls. The new dining quarter will be a covered family dining space set over two levels within the heart of Newcastle city centre. Martin Breeden, asset management director for intu says: “Newcastle is a vibrant city and Intu Eldon Square occupies the prime pitch with an annual footfall of 36 million. We want to deliver highquality catering which will meet the high demand from our shoppers.”

Back in the zone SPOTLIGHT: FRANCE FRANCE is proving a magnet for investment and in the first half of the year French developer Klépierre completed three shopping centre extensions in Europe: Rives d’Arcins (Greater Bordeaux, France), Vinterbro (Greater Oslo, Norway) and Salanca (Perpignan, South of France). In November, Klépierre will also open the extension-refurbishment of Jaude (Clermont-Ferrand, France).

Klépierre also has a raft of development projects in the pipeline, including two new projects for 2014 at Kristianstad (Sweden) and Romagna Centre (Adriatic coast, Northern Italy), and the extensionrefurbishment of Centre Bourse in Marseille.

The company has also said that its €1bn disposal target is on track, with close to €900m of disposals

completed since the beginning of 2012 and a €2.3bn pipeline focused on selected regions and assets.

Laurent Morel, chairman of the Klépierre executive board, says: “Klépierre concentrates its business development in European geographic regions that show the highest economic and demographic potential. To face the new challenges of our industry, we have to keep retail moving forward, offering to our retail partners and theirs customers appealing and up-to-date malls. We refresh the retail mix of our centres with a very active retenanting policy, both strengthening our partnerships with key value-for-money international retailers and attracting traditional, exclusive or high-street concepts in our malls.”

GROWTH SECTOR: DESIGNER OUTLETS IN EUROPE With high streets continuing to struggle other than in the prime locations, out-of-town designer outlets are becoming an increasingly attractive prospect for investors in mainland Europe, where traditionally the format has been somewhat overlooked.

In Germany and Austria, Henderson Global Investors, with its Outlet Mall Fund joint-venture partner McArthurGlen, is proceeding with extensions to three of its outlets. As part of the wave of investment, McArthurGlen Designer Outlets in Neumunster outside Hamburg, Berlin and Parndorf outside Vienna are all undergoing extension works.

“We went the extra mile to make sure [Annopol] is precisely adjusted to the expectations of customers visiting with their children” Agata Brzezinska, Neinver Poland

Centre Bourse in Marseille

The Clock Tower Square at the McArthurGlen Neumunster development

In the UK, meanwhile, the Henderson UK Outlet Mall Partnership has embarked on a major £35m revamp and extension to the McArthurGlen Swindon Designer Outlet, which will result in 5,000 sq m of space and 30 new stores, taking the centre’s overall offer to 125 units.

In June, Indianapolis-based Simon Property Group — the largest mall owner in the world — agreed to invest €435m in the McArthurGlen Group, with Simon establishing an ownership stake in a number of McArthurGlen properties and becoming a partner in the real estate management and development business. The investment includes six properties in Austria, the Netherlands, Italy and the UK out of a portfolio of 21 outlets.

Elsewhere, major designer outlet player Neinver opened the 19,100 sq m Factory Warsaw Annopol in March and currently has three new builds under construction in Spain, Portugal and Poland. Viladecans The Style Outlets in Barcelona is due to open towards the end of 2015, when it will boast 25,000 sq m of retail space over 150 stores. Also under way is The Style Outlets in Portugal’s Algarve, which will bring 120 new units to the region over 23,000 sq m when it is completed next year. These builds follow the Galeria Katowicka, which Neinver has just completed and opened in Katowicka, Poland, which brought 150 stores with it.

“At Annopol we went the extra mile to make sure it is precisely adjusted to the expectations of customers visiting with their children as Warsaw has not had a family-friendly outlet mall,” says Agata Brzezinska, country manager at Neinver Poland.

And the week after MAPIC, French outlet developer www.mapic.com I preview magazine I October 2013 I 53

i FEATURE Catinvest will open its latest project — One Nation Paris — in the Western suburbs of the French capital, comprising 112 new luxury and fashion units. Leasing and project management will be carried out by Advantail.

GROWTH SECTOR: LEISURE AND ENTERTAINMENT Consumers want to shop, dine, play and relax all in one place — and a new generation of shopping centres has emerged to answer this demand. With leisure and entertainment fundamental to the design, Just Under The Sky in Brussels epitomises this new approach.

Developer Equilis is hailing the scheme, which is located close to the Palais Royal de Laeken area of Brussels, as a whole new district for the Belgian capital. Equilis is building a raft of elements into the scheme, which will sit over a massive 56,000 sq m of space in the northeast of the city.

With the vision of Belgian architect Art & Build guiding the project, work began in August of this year on the site, which is close to the city’s only remaining canal. With completion set for the end of 2015, Equilis has yet to announce detailed plans, but says the shopping element will include four anchor tenants, as well as a number of smaller units, surrounded by a mix of leisure, dining, bars, markets, entertainment and cultural space.

In Poland, Echo Investment is progressing through the planning stages of a major project in Poznan to deliver a retail and entertainment centre over a massive 191,000 sq m of land. Work is expected to start on the Metropolis Shopping & Entertainment Centre next year, kick-starting a two-year construction phase at the end of which the city will have 250 new retail stores, a nine-screen cinema, a bowling alley, a grocery hypermarket and a DIY superstore.

“Whiteley’s second phase will increase the vibrancy of the retail scheme, enhancing dwell times and the centre’s attractiveness to residents and workers” David Pollock, British Land

A sign of the rising popularity of the mixed-use scheme comes from specialist entertainment and retail property designer KCC Entertainment, which has consulted on a range of recent developments and current new builds, including the SEGA Republic, an indoor amusement park that forms part of the Dubai Marina Mall, which opened last year. While SEGA Republic has already opened its doors, a number of KCC Entertainment’s

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Back in the zone PROJECT ROMEA SHOPPING CENTRE, MARGHERA, CORIO ROMEA shopping centre is located in Marghera, Italy, March 2014, has a total GLA of 40,000 sq m, over 110 adjacent to Mestre, which is the landside town that shops, including a large hypermarket, food court and links to Venice via a causeway. The catchment area restaurants, as well as leisure and entertainment has a population of over one million people and has facilities. The architectural concept for the project is one of the highest spending powers in Italy. In inspired by the local area and culture, in particular the addition, Romea shopping centre will benefit from the merchant trading empire of the republic of Venice, huge number of tourists that come to Venice and the which was a major maritime power at the time. area each year. Romea shopping centre, which is Developed by Corio, the concept is by Design currently under construction and expected to open in International.

PROJECT FASHION HOUSE, ST PETERSBURG AT THE end of May 2013 Fashion House Group obtained a valid building permit for its outlet centre in St Petersburg and the company plans to complete construction in 2014. This second in Russia and sixth Fashion House Group project globally is being developed on a land property of 12 ha in Lomonosovskiy district on the border of St Petersburg and the Leningradskaya Oblast. To be built in three phases total investment is €70m and the scheme follows the successful opening this year of the first such centre in Moscow.

i FEATURE other designs are still being turned into reality, including the Blockbuster Mall and Lavina Mall, both in Ukraine; Minopolis malls in Turkey, Kuwait and Saudi Arabia; and the Park Mall Setif in Algeria.

Edutainment specialist KidZania, meanwhile, is set to open at Westfield London in late 2014 or early 2015.

At Westfield, KidZania, which combines role-playing with real-life tasks, will provide children and their parents with an educational environment that allows kids between the ages of four and 14 to role-play grownup jobs. The indoor venue is a city built to scale for children, complete with buildings, paved streets, vehicles, a functioning economy and recognisable physical activities in the form of ‘establishments’ sponsored and branded by leading multinational and local brands. At two-thirds of their actual size, all the facilities are designed to be the right size for children. Next year, KidZania is to open in Singapore, Moscow and Manila, with London [Westfield], the US and Qatar following in 2015.

Similarly, Cite des Sciences et de l’Industrie, the exhibition arm of the French Science Museum, is back at MAPIC to explain its educational entertainment offer for malls. “We can provide something that not only creates a great environment for children but that also helps to promote our mission to ‘spread the light’,” says Cite des Sciences et de l’Industrie’s international project manager, Fatima Ouali of the educational establishment’s ethos.

British Land and Universities Superannuation Scheme (USS) is to add a nine-screen Cineworld as part of the £15.5m second phase of its Whiteley development in Hampshire in the UK. The 6,000 sq m complex, which has been granted planning permission by Winchester City Council, covers 3,000 sq m of space at ground floor level and will feature a combination of additional restaurants, leisure and community uses. Whiteley’s first phase, which opened in May, is anchored by a 6,000 sq m Marks & Spencer.

David Pollock, retail development manager for British Land, says: “Whiteley’s second phase will further increase the vibrancy of the retail scheme, enhancing dwell times and the centre’s attractiveness to local residents and workers. The additional leisure element will complement the restaurant offer, boosting the attraction of the centre as a retail and leisure destination, as well as bringing additional jobs to the area.”

Back in the zone PROJECT ALEA 101, BERLIN, REDEVCO AT THE foot of Berlin’s TV tower in floor space, some 10,000 sq m will the vibrant neighbourhood of be dedicated to retail and Alexanderplatz, one of the busiest restaurants from the basement retail locations in the German through to the second floor. capital, ALEA 101 is being created Already about 90% of this space

by Redevco. When it is completed has been rented to well-known in the spring of 2014 ALEA 101 will companies such as TK Maxx, be a commercial and residential AktivSchuh, Olymp & Hades and building designed as a 30m-high Vapiano. On the third and fourth standalone cube with five floors floor there will be 3,200 sq m of and a basement. Of the high-quality office and residential approximately 19,000 sq m gross space available.

GROWTH SECTOR: TRAVEL RETAIL AND TRANSPORT The transport sector has developed well beyond its traditional remit. Today, it caters to a generation of more frequent travellers via retailers who understand how to harness the potential of an airport, railway station or underground system by employing space smartly.

For developers and investors, the opportunity to deliver this modern space is huge. A wave of developments

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Hammerson’s Bullring leisure offer has been transformed

RELATED CONFERENCE DURING MAPIC “New opportunities for travel retail: emerging passenger groups and the case for accessible luxury” Co-organiser: Frontier Magazine Wednesday 13 November 17.30-18.15 Oxford room

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i FEATURE

Retail on track: New Street station in Birmingham

completed in the last decade across Europe has raised the bar considerably. These include the extensions to London’s Heathrow and Amsterdam’s Schiphol airports, and there are a number of similar projects throughout the EMEA region in various stages of construction.

“There is clear evidence that major transport projects are big catalysts for development” Justin Taylor, C&W

In the UK’s second city, Birmingham, the main railway station at New Street is undergoing a total overhaul, refurbishment and renaming. A joint venture between Network Rail and Birmingham City Council has drawn up plans to transform the Palisades Shopping Centre above the station, which will be almost entirely redeveloped. The resulting centre — Grand Central — will consist of a new 50,000 sq m of retail space, with 50 units 58 I

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to cater for the 40 million passengers that pass through the station each year.

On the other side of the channel tunnel, Apsys is busy with its 36,000 sq m Muse development in Metz in the northeast of France. The scheme — a mixed-use

PROJECT AL EMADI ENTERPRISES – QATAR THE 55,000 sq m Al Markiya scheme in Qatar is being designed as a luxury mixed-use project incorporating leisure, retail and educational services amid Italianthemed architecture and focused on a large, 5,000 sq m central lake. The site is being developed by Al Emadi Enterprises and the company says it has been envisaged as Doha’s “premier luxury complex”, which will include a range of international restaurants, a spa club, an international library and a children’s education centre. Promenades are being built around the perimeter of the lake and the retail and leisure will range from informal cafes to high end luxury stores.

Back in the zone ‘neighbourhood’ of retail, residential, cultural and leisure space — owes its conception to the extension of the high-speed TGV rail link in 2007 and the subsequent revitalisation of the Nouveau Centre Pompidou project. It will include 133 stores for retail and food units, as well as 450 residential units and office space.

In Austria, Suedbahnhof, or Vienna South Station, is being transformed. The new Vienna Central Station, as it will be known when the project is finished next year, will include the BahnhofCity mixed-use centre which, with its 115 shops, cafes, restaurants and service outlets, developer ECE says will be a “city within a city”.

In the Middle East, the potential for development is even greater. A new wave of vast ‘aerotropolises’ — mega airports in hubs such as Dubai and Istanbul — have been predicted as the stature of the Middle East grows exponentially, both as a destination in its own right and as an air hub linking West to East.

Indeed, of the many opportunities that exist in the EMEA region, one of the most potentially rich is transport. Throughout Europe and the Middle East, huge programmes to improve railways, roads and airways are in hand, and the key hubs that connect them are becoming prime spots for retail property development.

Drawing on recent examples from the UK, Justin Taylor, CEO of Cushman & Wakefield’s UK retail and leisure teams, says transport represents interesting opportunities

PROJECT LES TERRASSES DU PORT, MARSEILLES, HAMMERSON HAMMERSON-owned Les Terrasses du Port development, which will open in May 2014, is around 90% let and Zara, H&M, Printemps and Levi’s have signed up to the scheme, with Ted Baker one of the latest to agree to take space.

Hammerson leasing director for new business Sheila King said: “Ted Baker is one of the fastest growing lifestyle brands with strong fashion collections which are rightly growing in popularity with international consumers. This signing reinforces Les Terrasses du Port as a prime location for global retailers looking to expand their presence in the said: “We are delighted to have secured a store at Les French market.” Ted Baker finance director Lindsay Page Terrasses du Port and look forward to its launch next year.”

for retail. “Some of the really significant development in London has been around transport, particularly rail,” he observes. “There is clear evidence that major transport projects are big catalysts for development. In London, Crossrail is going to have a really significant effect for both occupiers and investors in those locations.”

The EMEA development pipeline is being driven by Russia and Turkey, where half of all European retail property development will take place in the next year. However, the fact that just under 12 million sq m of new space will have been completed by the end of 2014, and that clearly demand from retailers is there, gives reason for hope.

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i FEATURE ASIA: BEYOND CHINA AND INDIA

City schemes scaled for new retail

Hong Kong continues to be the most expensive global location for retail rental

Retail development across the Asian markets is being fuelled by increased demand from retailers looking to establish a store presence in the East. Mia Hunt reports

A

GROWING middle class and increasing spending power across the Asia has led to consumer demand for better quality retail, fuelling the growth of new shopping centres. And according to international agent CBRE’s Global ViewPoint, emerging markets will continue to dominate new development in 2013-2015.

“We have started to see, certainly over the last year or more, an increase in investment in the retail market, particularly in core countries like Singapore and the larger metropolitan areas,” says Petra Blazkova, CBRE’s head of research for South East Asia.

When it comes to retail demand, CBRE research shows that Asia accounted for 24% of global new entries. Hong Kong is a key market, seeing strong demand from both international and domestic retailers. It was by far the most sought-after city last year, with 51 new retail entries, principally from the UK and France, but also from the US, Japan and South Korea.

Demand is largely driven by the high number of tourists,

particularly from mainland China, and because it is seen as a launch pad for entering the wider region. “The last three years have been record-breaking in terms of tourist numbers, which have risen by 15% to 52 million a year,” says Tom Gaffney, national director and head of retail, Hong Kong, at Jones Lang LaSalle. “That, combined with a population of eight million is really pushing up spend.”

Two to three years ago, Gaffney says developers were targeting “The last three years have the Tsim Sha Tsui area in southbeen record-breaking in ern Kowloon. Now, however, the terms of tourist numbers. focus has moved to Causeway That, combined with a Bay and the New Territories near the boarder, with Sheung Shui, population of eight million, Tuen Mun and Sha Tin doing is really pushing up spend” “tremendously well”.

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i FEATURE

Last year, CapitaMalls Asia opened two malls in Singapore — JCube and The Star Vista — and it will be opening another two, Westgate and Bedok Mall, later this year

Lumpur, Hong Kong’s lack of space is stilting development, pushing retail rents up to unprecedented levels and forcing some retailers to move to, or continue to expand in, de-centralised areas.

Meanwhile, Singapore welcomed the world’s fourth

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highest number of new retailers last year, with 25 entering the market. The island state’s limited supply pipeline means that primary space is snapped up quickly. The newly opened Jem shopping mall in Jurong East opened with full occupancy and the Orchard Gateway scheme,

City schemes scaled for new retail

set to open in November, is already 80% pre-committed.

According to Chua Yang Liang, Jones Lang LaSalle’s head of research, South East Asia and Singapore, developers are beginning to target the suburban sub-market. “Providing some 348,958 sq m, more than half of which will come from developments within the Jurong Gateway regional centre, the suburban sub-market will continue to contribute the largest amount of new retail space from 2013-2017, when the projected supply total is 8.76% prime, 24.22% secondary and 67.02% suburban,” he says.

There has also been strong growth in investment transactions. Total sales soared by 407.1% quarter on quarter to €580m from the first quarter of 2013 — a figure boosted by the sale of PoMo, a retail and office development that sold for €196m.

Shopping-mall developer, owner and manager, CapitaMalls has 103 shopping centres — 83 operational and 20 under development — in five Asian countries and across 52 cities, with a total property value of €20.2bn and a gross floor area of 8.91 million sq m. Aside from China, its key markets are Singapore and Malaysia, with 19 and six malls respectively.

“While relatively mature, the shopping-mall scene in Singapore continues to grow in scale and sophistication,” says Chng Chet Siew, senior vice-president of regional investment and asset management (leasing) at CapitaMalls Asia.

Last year, CapitaMalls Asia opened two malls in Singapore, JCube and The Star Vista, and it will be opening another two, Westgate and Bedok Mall, later this year.

“Our malls are becoming social hubs for the community, where people can have gatherings, interact and bond with one another” Chng Chet Siew, CapitaMalls While food and beverage (F&B) is booming in Singapore shopping centres, where it can account for between 30%-40% of the tenant mix, there is a different picture in Hong Kong. “It used to be that 20%-30% of the overall floor area of a shopping centre was dedicated to F&B, but that’s down to about 15% now,” Gaffney says. “Typically, F&B operators have low margins. They can’t cope with the high rents and they are being pushed out into the high street.”

Leisure, too, is gaining traction in Singapore. “Shared experiences among friends and family is the single key motivator for most shoppers,” Liang says. “Activities that cater to that need are increasingly gaining prominence and we have seen how the tenant mix has moved and changed over time as a response to this market need.”

Indeed, CapitaMalls is an example of a developer that is increasing the percentage of shop space allocated to F&B and other leisure uses. “Our malls are becoming social hubs for the community, where people can have gatherings, interact and bond with one another,” Chet Siew says.

CapitaMalls is also embracing omni-channel. Last year, it rolled out a gift wishlist app for the Christmas season in Singapore, which allowed shoppers to browse online for gifts available at its malls.

As for the future, the region’s retail experts predict that, with growing regional competition from international retailers looking for new markets, Malaysia and Indonesia may take the focus. www.mapic.com I preview magazine I October 2013 I 63

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i FEATURE

RELATED CONFERENCE DURING MAPIC “North American” real estate: successful recession survival strategies” Co-organiser: Talbot Consultants International Inc. Wednesday 13 November, 16.00-16.45 – Agora room

THE AMERICAS

Local heroes For retail developers, the US looks resurgent. But the rules of engagement may be different, writes John Ryan, with more refurbishments and an emphasis on the local

The Howard Hughes Corporation received approval to redevelop Seaport Village in lower Manhattan in March this year

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ENTS are rising, new developments are com- Practically, this means that, in some markets, the deing on stream and it’s full-steam ahead follow- velopment story is as much about refurbishment as new ing ‘The Great Depression’, as some are refer- build. The recession has also meant that US retailers ring to the period post-2008. That, or a version of it, is have pursued the maxim, ‘When the going gets tough, what is being said by the more bullish commentators, al- the tough get going’, as they look at those markets bethough most observers are at least content to state that a yond the US that have been more or less unaffected by the downturn. Now, they are corner may have been turned. turning their attention back to Atlanta-based Matt Winn, home turf.

Americas retail services lead“I feel this is a good time The redevelopment of New er at Cushman & Wakefield, to be entering the US York City’s South Street says: “We are seeing signs of a and it’s notable that the Seaport, or Pier 17 as it is freretail revival and an evolution quently called, stands as a case of our property market to meet more enlightened US in point. The Howard Hughes the needs to today’s consuminvestors and developers Corporation received unaner. Value orientation on Main are coming to MAPIC” imous approval to redevelStreet and luxury orientation David Rabinowitz, Goulston & Storrs op the 33,910 sq m structure on Wall Street is making for an in lower Manhattan in March interesting market.” www.mapic.com I preview magazine I October 2013 I 65

i FEATURE this year and work is due to commence this autumn. Pier 17 first opened as an urban shopping centre in 1983 and has been popular ever since. However, it is now showing its age.

The refurbishment will involve more than $200m of private investment and will provide Pier 17 with a glass facade, an open rooftop and 40% more open space than exists today. There will be a larger open space on the pier level and the new roof space will serve as an entertainment venue. The other feature worth noting is that a local and regionally sourced food market will form part of the redevelopment by October 2014, reflecting the trend for anchoring developments, new and old, in the community.

It seems probable that potential lessees at South Street Seaport will find that rents have risen, and this is illustrative of what is happening more generally in the US’ large urban gateways, according to Winn. “Rents continue to rise on the high streets of New York, San Francisco and Los Angeles,” he says. “The workforces of these cities who work in white-collar industries like financial services, technology and corporate home-office headquarters, are well educated and have more disposable income than the rest of the country.”

One of the symptoms of a general uptick in the economy is that new developments come out of the ground and mall developer Westfield continues with work on the

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eponymous Westfield World Trade Center that will offer 32,500 sq m of new retail space when it opens in New York in 2015.

Greg Maloney, president and CEO of retail, Americas, for Jones Lang LaSalle Retail, adds: “Certain retail markets in the United States have rebounded tremendously since the downturn, driven by core gateway markets like New York, Los Angeles and Miami.”

New York-based David Rabinowitz, co-chair, retail and industry group, Goulston & Storrs agrees and says: “New York, including the boroughs, is on fire and space is limited, although deals are still being made. We’re even seeing some landlords converting second floor space from offices to retail. In fact urban locations across the US are performing strongly, as are the major malls. For the smaller malls and tertiary centres it is about repositioning and for example we have seen Target and Costco being brought inside many malls for the first time.”

In Miami and south Florida there is certainly an increase in rent and occupancy, according to local property adviser Terranova, which says that national chains are moving into the area on the back of a consistently robust tourist trade. Much of the new action is taking place on high streets rather than in shopping centres. However, a report from Terranova notes: “Retail street landlords face the challenge of balancing the need for financially strong, national tenants that are

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Local heroes able to afford rising rents, with the appeal of unique local tenants that give the street a home-grown, local character.”

But although the ‘gateway’ cities are looking resurgent, what of prospects nationally? Atlanta-based Kris Cooper, managing director of Jones Lang LaSalle’s retail capital markets group, says: “We are seeing money move into non-gateway markets like Seattle, Atlanta, Dallas, Houston, Orlando and Charlotte. This year, we expect retail investments to surpass 2012 with a 10%-20% increase, as more well-capitalised buyers move in.”

Rabinowitz says: “Lifestyle and leisure has become increasingly important and what we are also seeing is Dollar stores entering older malls as existing tenants move into newer retail centres. We really need more development to continue this flow and to encourage the Dollar stores into such venues.

“I feel this is a good time to be entering the US and it’s notable that the more enlightened US investors and developers are coming to MAPIC to seek out those international retailers which can help differentiate their US schemes and make them stand out.”

The same is true of Canada and Chris Tarrant, managing director, Oberfeld Snowcap, says: “We have had a pretty exciting year here on the Canadian retail landscape with the opening of Target across the country and the announcement that Nordstrom is set to debut. A number of

2013, Les Docks en travaux

Dollar stores such as Family Dollar are targeting secondary and tertiary malls

first-to-market brands have found success and Canadians have embraced these brands and that acceptance has fuelled further expansion.”

Tarrant notes that European retailers continue to look at Canada in a very positive light despite the pick up in the US economy. “The successful entries into the market to date have really crystallised the Canadian retail market as one of opportunity,” he says.

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www.mapic.com I preview magazine I October 2013 I 67

MAPIC Awards Gala Dinner 2013 Thursday, November 14, 2013 at 19.30 Martinez Hotel, Cannes

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Make your reservation now!

Invite your clients, colleagues and friends to a night of celebration.

3-course dinner, including champagne & wine, accompanied by music & entertainment.

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10-seat branded table: € :PUNSL ZLH[! € 250 To book a seat or a table, please send a email to mapic.awards@reedmidem.com The dinner will be followed by the traditional MAPIC Awards Party at the same venue.

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Opportunities For Global Retailers In India Co-organiser: Images

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Global Overview Of The Chinese Retail Market – Where Are The Opportunities?

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The big opportunity AS RETAIL markets, they don’t come much bigger than MAPIC’s Rising Stars, which between them represent three continents and nearly three billion people.

For the retail market, it is the affluent and, in particular, the burgeoning middle classes in each of these countries that are of real interest. As they have proliferated in number, they have generated global retail power cities — Moscow, St Petersburg, Shanghai, Beijing, Rio de Janeiro, Sao Paulo, Mumbai, Delhi, Chennai — and in their wake have emerged dozens more cities of one million or more people demanding better retail destinations, wider choice and more leisure.

Of course, these four markets have been recognised for their potential for some years. The rewards, however, do not come without risks and challenges. The sheer scale of China and the power of its domestic operators have made it a highly competitive market, while India’s infrastructure and the ongoing though gradually resolving uncertainty surrounding its foreign direct investment (FDI) rules have slowed international expansion. Booming Russia hit a bump in the road posteconomic crisis, but has firmly bounced back. And Brazil has also seen its economic fortunes ebb and flow, although its global reputation has now solidified.

This short Preview cannot hope to reflect the scale, breadth and diversity of opportunities across these marvellously complex markets, but serves at least as an appetiser for their participation at MAPIC 2013.

Mark Faithfull Editor-in-chief MAPIC The fantastic four 70 Our experts cast an eye over the global and individual opportunities in the Rising Star markets Russia steps forward Russia is preparing to welcome a number of pivotal retail developments as the market continues to grow across its major cities

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The great mall of China 78 Luxury and mainstream retailers have been drawn to China as its middle classes drive forward consumer demand

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India’s growth on the agenda FDI rules have slowed expansion but development is fuelling growth nationally

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The Latin quarter 82 Brazil’s big cities have emerged as a target for European and US retailers and developers www.mapic.com I preview magazine I October 2013 I 69

i FOCUS • RISING STARS RISING STARS

The Fantastic Four Four huge global markets — Brazil, Russia, India and China — continue to dominate retailer interest and each offers its own opportunities and challenges. We asked the experts to sum up what they expect from these markets in 2014

BRIC OVERVIEW JAMES DOLPHIN, lead director of international retail, Jones Lang LaSalle W HILE Asia has momentum, Latin America is showing signs of huge opportunity and is increasingly attracting inward retail investment and international occupier interest.

This is supported by AT Kearney’s Global Retail Development Index 2013, which lists Brazil, Chile and Uruguay in first, second and third place respectively, with China ranking fourth. These retail markets offer attractive and growing middle classes, sustained economic growth, and increasing consumer and investor confidence.

Last year’s Jones Lang LaSalle Retail Real Estate Momentum Index identified China and India as the top two countries with the strongest retail and investor involvement. Barriers to international retailers entering the Indian market are only just beginning to be lifted, but investment groups are optimistic about the potential for the retail sector in India. The recently opened Mall of India in New Delhi is the sub-continent’s first mall to offer six floors of entertainment and shopping. Its ‘best in class’ status is sure to attract international retailer scrutiny.

In China, we are seeing economic restructuring encouraging investment. Domestic groups are still the major

sellers but, on the buy side, there is a lot of Asian capital largely originating from Singapore and Hong Kong.

Mall owners are gearing up to re-orient their tenant mixes around lifestyle and experience, in response to the ecommerce boom in China. More than 242 million shop online in China — 75 million more than in the US and double the number of shoppers in Japan.

There is continued demand from international retailers for an effective market entry and roll-out across China and, more recently, retailers have become more analytical about site selection and bottomline potential, rather than brand-exposure investments.

Recent mall openings continue to show strong pre-commitment levels, while the department store sector is in decline.

In Brazil and Russia, international investment tends to be seen in the tier-one cities. In Russia, we are seeing brands investing directly into the market and also some well-established UK brands launching their stores. Last year, for example, we saw Debenhams and Hamleys entering the Russian market, while Tommy Hilfiger opened at Kuznetsky Most in Moscow. Galeries Lafayette is also looking to expand into the country, focusing primarily on Moscow, where the major development pipeline supply for 2013-2014 exceeds 1 million sq m.

“More than 242 million shop online in China — 75 million more than in the US and double the number in Japan” James Dolphin

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INDIA ANSHUMA MAGAZINE, chairman and ANSHUMAN managing director, CBRE South Asia THE INDIA retail story is one that has been evolving over the past few years, with trends that have both encouraged and hindered the growth of retail in India.

The widespread existence of unorganised retail formats, changing consumer behaviour, cultural diversity, increased spending power and the entry of various international retailers over the past few years both characterises and explains the evolution of retail in India.

Immense retail potential and opportunities lie juxtaposed with the various challenges posed by India’s present-day retail scenario. Indian retail was put on the map in 2012 with the opening up of foreign direct investment (FDI) in both single and multi-brand retail. This step, taken by the government, was significant in changing the face of India’s retail industry.

In the last decade, India’s leading cities have witnessed a huge influx of shopping-centre space. However, not all of it qualifies as quality retail space. The successful malls that offer quality space are now lacking in availability because of the high demand from retailers.

By contrast, many of the newer but less successful shopping centres are struggling with high vacancy rates. Since

CHINA JAMES HAWKEY, managing director, retail services, Cushman & Wakefield, Asia Pacific SOON it will no longer be possible to be a truly global retailer without being in China. China is the world’s second largest economy. Its retail market, at $3.3 trillion in 2012, is already about two thirds of the size of the US market, and is growing at 13% annually. In China’s cities, an urban middle class is emerging, and their spending power is growing together with their desire to experience international brands.

“There will be significant oversupply in the coming two years, with retail stock increasing by over 50% in many cities” James Hawkey

While just 10 years ago there were almost no brands with a national presence across China, the last decade has seen the rapid expansion of brands — from supermarkets to fashion, cinemas and restaurants — that span the whole price spectrum. International brands have seen significant success in China, sometimes offering a value proposition that local brands find hard to match.

2008, the organised retail stock has increased by almost 38 million sq ft (3.5 million sq m) in the seven leading cities of India, with almost 70% of this space concentrated in Delhi, Mumbai and Bangalore. These are the main Indian cities that are likely to attract the best international retailers, since Delhi NCR (National Capital Region) and Mumbai hold almost 60% of the total mall space in India, according to CBRE Research India in 2012.

The uncertainty that comes from weak economic indicators has impacted on the development of quality retail malls in India. The lack of quality retail space in shopping centres and on high streets is currently the greatest chal“Immense potential and lenge for most retailers.

Other concerns include high opportunities lie juxtaposed taxes, unreliable infrastructure with the various challenges and ambiguous FDI terms. In recognition of these difficul- posed by India’s present-day ties, the Indian government is retail scenario” reviewing the process in order Anshuman Magazine to make it simpler. Many developers across the country have begun to understand the process of developing and running successful retail developments, which is a trend that is likely to increase the number of successful malls in the country in years to come.

China’s love affair with luxury has been well documented and China is now one of the most important global markets for groups such as LVMH and Kering. More recently, fast fashion has been the darling of the market, with H&M, Zara and Uniqlo all present in a wide range of major cities and still expanding rapidly.

While retailer demand is booming, the supply of retail space is booming too. Many developers have come to view shopping centres as a major investment opportunity and, in an environment with relatively weak planning controls, this has lead to heavy investment. In our view, there will be significant oversupply in the coming two years, with retail stock increasing by over 50% in many cities.

The development pipeline in China is enormous, but not all developments will succeed. Well located, well designed projects with good management — especially those by experienced developers — will succeed and thrive. Projects developed by companies with limited retail experience, especially those in the less important suburban locations, will have a significant risk of failure and underperformance. This means that retailers need to do comprehensive due diligence.

While many markets across China will be affected by oversupply, this will be most evident in the key secondtier cities, such as Shenyang, Chengdu and Tianjin. These megacities of the future have enormous potential as retail centres, however. Levels of investment in retail property have been simply extraordinary and will ultimately lead to a number of failed shopping centres. www.mapic.com I preview magazine I October 2013 I 71

i FOCUS • RISING STARS RUSSIA JULIA GORDEYEVA, GO senior analyst, Sberbank Investment Research RUSSIA’s commercial real estate market has staged a healthy recovery since the crisis, enjoying two years of record investments as foreigners, including specialist funds, have returned to the market in search of yield and inflation protection. Real estate assets continue to offer higher yields than deposits, high-grade Russian corporate bonds and sovereign bonds.

Russia’s publicly listed real estate stocks performed well last year, with yields advancing by around a third on average, outperforming the RTS Index and European peers since the beginning of 2012. Unsurprisingly, it is Moscow that still accounts for the bulk of investment flows.

Fuelled by a population of 140 million people, it is Russia’s domestically driven economy that is providing the engine for growth. We are seeing increasing numbers of opportunities to optimise low penetration levels across the sector.

Russia’s retail market continues to evolve, with new formats such as retail parks and entertainment complexes gaining popularity and competing with traditional malls for footfall. However, high occupancy rates at Moscow’s quality shopping centres are keeping rental rates stable for the time being. Last year also saw internet retailers taking up significant space in the Moscow metropolitan area, in

BRAZIL LAURE MAUMUS, head of retail South America, Cushman & Wakefield BRAZIL has long been defined by its passionate culture, which can be both positive and negative as evidenced by the samba-based cheers of its football fans, its large protests this summer over state services and its shopping culture. Thus, while Brazil lags Mexico and most of the Americas in projected population growth, it is still expected to be one of the world’s premier retail growth opportunities for those who take the time to understand the customers created by the country’s new found wealth.

Despite widespread protests this summer, Brazil’s consumer confidence index at 112 is 20% higher than the worldwide average and the highest in the Americas.

Growing disposable income and personal spending will lead consumers to search for new brands. Total personal

“Malls remain the town squares of Brazil. Families shop, dine and socialise in their aisles and food courts” Laure Maumus

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The Fantastic Four

“Russian real estate assets continue to offer higher yields than deposits, high-grade Russian corporate bonds and sovereign bonds” Julia Gordeyeva

addition to the traditional retail and logistics operators.

The picture, however, is not consistent across the board, with some regional markets, such as Kazan and Samara, reaching average European saturation levels. This limits the scope for new projects to be successful. However, other regional markets, such as Volgograd, Krasnoyarsk and Perm, remain underpenetrated and still represent good opportunities.

In Moscow, 1 million sq m of quality shopping centres will arrive in the next two and a half years, keeping vacancy rates at current levels at best. We therefore do not anticipate rent hikes beyond inflation, making the market a lot more stable and predictable.

Moscow’s retail and industrial markets represent the best value for now thanks to tight supply and low vacancy, while other areas, such as the office market, remain oversupplied.

disposable income has tripled since 2000 to nearly R$2.7 trillion and will almost double again between now and 2020, strongly outpacing its peers in the Americas.

Malls remain the town squares of Brazil. Families shop, dine and socialise in their aisles and food courts. For this reason, many brands have already come to Brazil although some have been turned away based on a lack of space, heavy tax burdens and challenging labour regulations. Those that have taken the time, however, have been rewarded by a new group of consumers.

International pioneer retailers fall into the value or luxury category. Both Carrefour and Pao de Azucar (Casino) have been in Brazil for 40 years. Similarly, the ‘luxury wave’ a quarter of a century ago brought some of the top brands to the malls for the first time. Almost all of the luxury brands tested the market with a local partner but are now converting to direct ownership.

We are seeing the same trends in premium and fast-fashion retailers. The booming middle class is hungry for international brands. Gap (through a partner) and Forever 21 (direct ownership) will be open by year-end 2013 as shopping centre inventory continues to grow to cater to all spectrums of the Brazilian consumer. The high streets are also starting to come alive, creating new markets like Oscar Freire or Paulista Avenue on Sao Paulo and Garcia D’Avila in Rio. Retailers now see these locations as part of their expansion strategy and are even looking at streets in smaller markets.

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i FOCUS • RISING STAR RUSSIA

Russia steps forward Last year’s MAPIC marked a turning point for Russia, with a host of previously stalled developments moving forwards. Their fruition is starting to reshape the market, writes Mark Faithfull RELATED CONFERENCES TO MAPIC Master Franchisors: the gateway to Russia for international retailers Content partner: Impress Media Wednesday 13 November, 15.30-16.15 Champs-Elysées room What’s new in Russia: the advanced strategy of investment overview Co-organiser: Russian Council of Shopping Centres Wednesday 13 November, 16.30-17.15 Champs-Elysées room

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USSIA was undoubtedly hit by the loss in investor confidence post-2008 but, at last year’s MAPIC, there was a distinct change in the air.

Projects that had been put on ice were back under construction, with definitive completion dates attached, and more schemes were coming to market. This year, the focus will be back on the country and its million-plus population cities, with a number of projects to be presented.

“One distinctive trend in 2013 is the intensive development of relatively small-size retail schemes,” Andrey Vasyutkin, head of research and consulting at Magzin Magazinov, says.

“A large number of the shopping centres recently commissioned or which are to be commissioned soon are community-level developments such as Tropa, Moskvorechie and Izmailovsky.”

However, the company also points to the upcoming mega-malls as a sign that space will become more readily available in Russia, especially Moscow.

One such example is Avia Park SEC, which will be the largest mall in the world outside Asia when the 225,000

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sq m GLA project completes in the fourth quarter of 2014. Amma development’s four-level shopping centre is being constructed by Renaissance Construction in Khodynskoe Pole between two major Moscow highways: Leningradsky Prospect and Zvenigorodskoe Highway. It will include hypermarket Auchan (22,500 sq m), homefurniture store Hoff (10,000 sq m), the electronics store Media Markt (6,300 sq m), DIY store OBI (15,000 sq m), a sports-goods store, a flagship Debenhams (8,400 sq m over three stories), an entertainment centre and a multiplex cinema.

“Our investments in Russia have proven to be strong cashyielding assets and have been very resilient, even in the crisis” Eduard Zehetner, Immofinanz

Fashion House: from Moscow to St Petersburg © IMMOFINANZ

Also to open in Moscow in 2014 is Vegas Crocus City.

The 108,000 sq m GLA scheme is located at Crocus City close to Moscow’s densely populated north-western district, which includes Mitino, Strogino and Severnoye Tushino, as well as the city of Krasnogorsk and the developing neighbourhoods of Krasnogorye and Spassky Bridge. The total area of new housing in this area exceeds more than 1.5 million sq m. The International Crocus Expo Convention and Exhibition Center is also located in the vicinity.

Passazh is a historically significant retail project in Yekaterinburg, being developed by Malysheva-73. When it opens in the third quarter of 2014, the scheme will include a premium-level retail gallery, an exclusive Kupets Gourmet supermarket and restaurants in a GLA of 30,000 sq m.

The €250m Okhta Mall shopping centre in St Petersburg, developed by Finnish-backed SRV and Russia Invest will have a GLA of 75,000 sq m, with underground parking levels plus a hypermarket and four floors above ground.

The shopping centre, located in the city centre, will open in the spring of 2016.

Zolotaya Milya (Golden Mile) in Arkhangelsk will be the first European-quality shopping centre in the major Russian seaport. Developed by the Regions Group and Aquilon Invest, a retail GLA of 21,000 sq m will be combined with a seven-screen cinema, an entertainment area and a panoramic restaurant. JLL is acting as adviser in all these schemes.

Russia is one of the core markets of the Immofinanz Group. The company, which has been active in Russian real estate market for more than seven years, says that the country has always offered good investment opportunities. “Our investments in Russia have proven to be strong cash-yielding assets and have been very resilient, even in the crisis. And we do believe that the Russian market will keep evolving further — of course, depending on how the global and European economies will develop,” Immofinanz CEO Eduard Zehetner says.

Immofinanz’s assets in Russia represented 16.3% of the company’s total portfolio as of end of January and included

Immofinanz’s Golden Babylon shopping centre in Moscow

six properties (five standing investments and one development) with a value of €1.71bn. Golden Babylon Rostokino in Moscow, with a GLA of 168,000 sq m, was opened in November 2009 and is the most profitable shopping centre in Immofinanz’s portfolio.

The Golden Babylon I and Golden Babylon II shopping centres are also among Immofinanz’s highest revenuegenerators in the Russian capital. “These two properties have been part of our portfolio since mid-2006 and represent our first investments in Moscow,” Zehetner says.

“The fourth property is Fifth Avenue — it has 21,290 sq m of rentable space and is almost fully let. And with Goodzone, we are now developing our fifth and second largest shopping centre in Moscow.”

“We are strong believers in the Russian retail story” Andrew Kazanli, NAM

Retail development in Russia has increased significantly www.mapic.com I preview magazine I October 2013 I 75

i FOCUS • RISING STAR The Regions Group is a vertically integrated holding business including over 20 companies engaged in development and management of retail space. The Group’s assets comprise 30 operating properties with a total area of over 800,000 sq m, including seven June retail and entertainment centres and 23 Siberian Town neighbourhood shopping centres, with one more property under construction.

At the beginning of 2013, the Regions Group signed an exclusive license agreement with DreamWorks Animation to build the largest indoor theme park in Europe.

DreamWorks theme parks will appear in St Petersburg, Moscow, and Yekaterinburg. The first will open as early as 2015. Each one of the DreamWorks theme parks will be part of a huge complex also comprising a multi-functional movie and concert hall, a multiplex with an IMAX theatre, a shopping mall, a hotel, an area with gardens and parks, and 11,000 parking spaces.

On June 27, Fashion House Group successfully opened its fifth outlet centre in the CEE under the Fashion House brand. Fashion House Outlet Centre Moscow is the first fully enclosed and professionally managed facility of its type in Russia.

“The opening of Fashion House Outlet Centre Moscow is one of the most important milestones in the history of the Fashion House brand. After the successful development of four outlet centres in Poland and Romania, now we are aiming to leave a stamp on the retail market in Russia,” Patrick Van Den Bossche, managing director of Fashion House Group, says.

Fashion House Group will now focus on the development of its second project in Russia — a scheme in St Petersburg comprising 20,260 sq m GLA. The company is also proactively searching for development opportunities in other locations in Russia.

Fort Group says that its priority is its current portfolio. The company bought a 99% interest in Andrey Rogachev’s holding Makromir in 2011, with all its assets and liabilities, including five malls.

Now Fort Group’s portfolio has 11 retail and entertainment complex projects in St Petersburg totalling over 500,000 sq m. “We do not intend to expand the portfolio in the short term,” managing partner Maksim Levchenko says. Instead the company is focusing on a proposed IPO. Norman Asset Management has acquired a 15.7 ha land plot for the construction of a 50,000 sq m retail centre in Zhukovsky in the Moscow region, which is planned to open in the fourth quarter of 2014. Cushman & Wakefield advised the transaction.

Andrew Kazanli, chief investment officer at Norman Asset Management, says: “We are strong believers in the Russian retail story and the project in Zhukovsky demonstrates the compelling opportunities in this sector — a generally low supply of modern retail space, ambitious expansion plans by international retailers and strong retail turnover.”

Meanwhile, Alfa Bank is financing the construction of the Tau Gallery shopping centre in Saratov. TDC Corporation attracted Alfa Bank as a financing partner

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Russia steps forward for the construction of the shopping/entertainment complex. Evgeniy Antifeev, head of the regional Net OAO Alfa Bank unit, says: “The financing of a significant Saratov project is a long-term undertaking. We are investing for a period of seven years and are planning to ensure all resources for every stage of construction.”

Ekaterina Zemskaya, partner and director of shopping mall rental at Cushman & Wakefield, which is marketing and leasing the new shopping destination, adds: “Currently, Cushman & Wakefield is in negotiations with anchor tenants and is planning to finalise the deals shortly.”

Mitshi is one of Region Group’s seven June centres

Up to 15% discount for MAPIC visitors.

(Sixt - official car rental supplier of MAPIC)

i FOCUS • RISING STAR CHINA CapitaMalls will showcase phase II of Jinniu, Chengdu

The great mall of China The Chinese consumer market offers huge allure to retailers.

But, writes Mark Faithfull, comprehending its magnitude and the nature of the opportunity have taken time

W

HERE luxury brands first trod, now the world’s mainstream retailers and developers are arriving in their numbers. Yet beyond the undoubted opportunities in China, new arrivals will also find a fiercely competitive domestic market, with many outstanding operators.

While Beijing and Shanghai have grabbed the initial attention, there are vast numbers of million-plus population cities across China and much of the development focus is now on these second- and third-tier locations.

First-time MAPIC attendee Wanda Group opened in Changchun City in northeast China’s Jilin Province in August with a 450,000 sq m complex that includes a 160,000 sq m shopping centre, a commercial pedestrian street, a cinema and luxury residences.

Yonghui Superstores, C&A, Uniqlo, Shine Accessories and LNO Mothercare are among 16 new entries to the Changchun market. Situated near the railway station in Kuancheng district, the scheme is one of 75 Wanda Plazas opening around the country.

The company has expanded rapidly both at home and abroad. Last year, Wanda paid $2.6bn to acquire the US cinema chain AMC Entertainment Holdings, while domestically Wanda’s expansion focuses on property and the retail sector. The company plans to build 20 78 I

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commercial complexes and 20 department stores across the country every year, and currently operates 67 complexes under the Wanda Plaza brand, plus 57 department stores.

UK-based BDP, meanwhile, has won the commission for a masterplan in the financial district of Wuhan, known as ‘The City of a Thousand Lakes’. The Wuhan Tahan masterplan consists of an 18 ha mixed-use development strategically located in the city centre, with close links to the Wuhan Plaza business district, the financial business centre and Wangjiadun CBD (central business district).

The Wuhan Tahan scheme creates a gateway for the transition from the city’s old business and trade district to its new, emerging one. BDP has also led the design of a largescale shopping mall for Inter IKEA China. Currently on site, it is due for completion at the end of 2015.

RELATED CONFERENCES TO MAPIC “Global overview of the Chinese retail market where are the opportunities?

Co-organiser: Cushman & Wakefield Thursday 14 November 11.15-12.00 Champs-Elysées room “Asia Lunch” Sponsored by Inter Ikea By invitation only Thursday 14 November 12.30-13.30

“The second-tier cities are also developing the appropriate levels of full-price retail stores, customer sophistication and disposable wealth to support outlet growth” Kenny Sim, Henderson Global Investors

CapitaMalls will also be highlighting three of its new projects. CapitaMall iu Phase II, is located in a mature estate at the heart of Jinniu district in Chengdu. The mall is surrounded by government complexes and tertiary institutions and has a catchment of 1.5 million people within a 6 km radius. With the opening of Phase II in September this year, it became the largest landmark shopping mall in north-west Chengdu. The retail mix includes a cinema, karaoke and new-to-market brands in the district such as Toys ‘R’ Us and Samsung. In addition, CapitaMall Jinniu will feature a 13,000 sq m roof garden comprising restaurants, cafes, a pet park, a multi-purpose basketball court, a children’s playground, a youth activity zone and an elderly wellness zone to serve as a social hub for the local community.

The integrated development, Suzhou, China comprises a seven-storey shopping mall and two Grade A office towers. The mall spans three inter-connected buildings and is linked by a single roof canopy spanning over 35,000 sq m. When completed in 2017, the mall will be the largest shopping mall in East China with a total gross floor area of about 300,000 sq m and will feature international luxury brands exclusively in one building, plus retail, an IMAX cinema and an Olympic-size ice rink housed in the other two buildings.

CapitaMall 1818 is located in Wuchang district of Wuhan in Hubei Province in Central China. When completed in 2014, the eight-storey shopping mall will house popular international and local fashion brands, a supermarket, children-related specialties, entertainment facilities and restaurants.

As the Chinese market matures, so specialist opportunities are beginning to emerge. Henderson Global Investors acts as the investment advisor for Silk Road Holdings, a Chinese outlet mall joint venture with RDM Asia, the real estate development company of the Fingen Group in Asia.

The joint venture completed its first acquisition — the 41,000 sq m Florentia Village: Jingjin Designer Outlet near Beijing — in 2012. Earlier this year, Silk Road Holdings acquired two further development sites in the Nanhai District of Foshan in Guangzhou in southern China, and one in the Pudong New District of Shanghai.

The Guangzhou site is expected to deliver a 50,195 sq m designer outlet centre to be known as Florentia Village Guangzhou, scheduled to complete in late 2014. Also intended to open before the end of 2014, the Pudong site is located between China’s first Disneyland and the Pudong international airport. It will offer around 54,000 sq m of designer-outlet shopping and boast over 200 premium Italian, international and Chinese brands.

Kenny Sim, Henderson associate fund manager in Beijing, China, says: “Tier-one cities such as Shanghai, Beijing and Guangzhou have the right customer demographics for outlet performance. The upcoming second-tier cities such as Suzhou, Tianjin, Chengdu and Hangzhou are also developing the appropriate levels of full-price retail stores, customer sophistication and disposable wealth to support future outlet growth.”

OFFERING IT ALL OCT BAY in Shenzhen Province sits on a site that includes a man-made lake.

Enjoying a view overlooking the bay, the project is conceived as a one-stop retail/leisure destination that offers all the amenities, from a boutique

hotel and live-work facilities to entertainment and shopping. The design features two shopping neighbourhoods located to the north and the east of the scheme, created to accommodate a range of shopping

experiences. The northern area offers predominantly indoor facilities, inspired by the traditional retail arcades of Europe.

Design: Laguarda Low

Oct Bay in Shenzhen Province

Silk Road Holdings is opening outlets in China

The Wuhan masterplan for the financial district www.mapic.com I preview magazine I October 2013 I 79

i FOCUS • RISING STAR INDIA Xxxxx [MOI [MOI-NN Exterior Exterior.jpg] jpg]

Growth on the agenda Indian retail has been hampered by FDI legislation and some poor development but despite the challenges faced by international retailers demand remains very strong, says Mark Faithfull

R

ETAIL in India will continue to be a growth story at least for the next 15 years, according to Anuj Puri, chairman & country head, Jones Lang LaSalle India. He points out that it remains an under-penetrated market, with huge potential for growth.

Nevertheless, many of the challenges remain and have not been addressed — lack of suitable real estate, nonefficient logistics, infrastructure bottlenecks and lack of qualified manpower continue to plague the industry. In fact, Puri believes that in the next five years, lack of quality real estate is going to become a major hurdle — supply will reduce severely in 2014-2015, which may result in increased in rentals in some pockets.

“Organised retail is now looking at cities that have a population of 500,000 to 1 million inhabitants. There are over 80 of these cities in India, with good population size and aspiring middle class necessary to sustain these stores,” Puri says.

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One of the major stumbling blocks has been the controversial issue of foreign ownership and Puri notes that the debate continues. “Technically, the new policy to liberalise FDI in retail has been approved. However, new amendments have been made to the Foreign Exchange Management Act (FEMA), but these still need to be unilaterally approved if the new policy for multi-brand retail in India is to become legally valid,” he says. “It was approved by the Cabinet last September, getting a thumbs-up from the Lok Sabha (India’s House of Commons). However, the Rajya Sabha (the House of Lords) is still contesting the issue. We will probably have no clarity on it until the forthcoming elections, which could bring with them some major policy changes.”

The Retailers Association of India (RAI) is the unified voice of Indian retailers and works with all the stakeholders for the growth of the modern retail industry in India. RAI will be at MAPIC and is the body that encourages, develops,

facilitates and supports retailers to become modern and adopt best practices.

In the meantime, development continues. DLF’s Mall of India, located in an upscale area of Noida and very well connected to South East Delhi, will include an Entertainment City, international cafes and global dining options. Headed by Pushpa Bector, senior vice-president, DLF Utilities, Mall of India has been planned and designed by architect Benoy and will operate over six levels, including international and Indian premium fashion, a dedicated kids zone, entertainment, international cafes, food court and restaurants with a race track atrium.

In all there will be 475 retail units, three level parking for 3,500 vehicles, the largest indoor entertainment city in the country, plus the largest food court in the country with over 1,200 seats designed by Varney Designs.

Virtuous Retail, the retail arm of investor The Xander Group, will open its first VR centre at Whitefield in Bangalore in August next year, followed by two more centres in Koramangala and Kanakpura. Managing director

NEW PIONEER SPIRIT Pacific, Dehradhun opened in mid-August this year and is the latest mall from Pioneer Property Zone (PPZ). The circa 16,000 sq m GLA is evenly split between national and international brands and includes Lifestyle, Max, Pantaloon and PVR as its anchors and Tommy Hilfiger, Calvin Klein, French Connection, Jack & Jones, UCB, Vero Moda, Only and T M Lewin among its international brands. With 95 stores spread across four floors, the mall also includes a five-screen cinema.

Pacific, Dehradhun opened in the summer

Anupam Yog says the company has been working on a community retail and leisure concept and was looking at other major city locations around the country.

RELATED CONFERENCE TO MAPIC “Opportunities for global retailers in India” Co-organiser: Images Thursday 14 November 10.15-11.00 Champs-Elysées room

DLF’s Mall of India will offer 475 retail units over six levels www.mapic.com I preview magazine I October 2013 I 81

i FOCUS • RISING STAR BRAZIL

The Latin quarter Retail sales may have cooled but development continues in Brazil, which is leading the Latin renaissance. Mark Faithfull reports

B

RAZIL remains the key South American retail market and, despite a few bumps along the road, its emergence as a retail opportunity has also coincided with the emergence of its populace as important global consumers. However, with high import duties and as an emerging market, Brazil remains a challenging location and this is one of the reasons more Brazilian companies are targeting MAPIC, in a bid to make market entry easier for international brands, investors and developers. Among these is Brazilian shopping centre association ABRASCE. In December 1999, Sonae Sierra became the first European developer to look seriously at exploiting those opportunities when it established a joint venture with Enplanta Engenharia. In March 2002, the company duly opened Parque D Pedro Shopping in Campinas in the State of Sao Paulo. In June 2003, the joint venture became Sonae Sierra Brasil and the company now owns and/or manages 11 operating shopping centres, totalling 422,000 sq m GLA and 2,202 stores.

Its newest scheme is Passeio das Aguas Shopping which, at 280,000 sq m, will be the biggest shopping centre in the state of Goias when it opens in the fourth quarter of this year. Serving a catchment area of 1.6 million people, the 78,100 sq m GLA mall will host 277 stores, including 10 anchors, nine MSUs (medium sized units) and nine restaurants, in addition to 4,000 parking spaces.

Passeio das Aguas Shopping’s tenants will include some new to the city like Artex (bed and bath linens), Etna (furniture and homewares), Striker Boliche (bowling) and Zelo (fashion), along with well-known brands including C&A, Casas Bahia, Cinemark, Eletrosom, Marisa, MMartan, Novo Mundo, Polishop, Supermercados Bretas, Renner, Riachuelo and Ri Happy.

“We are developing a space that will be more than just a shopping centre; it will also be a place where everybody will be able to find quality options of leisure and gastronomy,” Jose Baeta Tomas, CEO of Sonae Sierra Brasil, says.

“This is a bold project and we expect that this centre will become a reference and a true landmark for Goiania and its surrounding areas.”

Fellow Portuguese business Engexpor is working as construction engineer on the project, one of eight retail schemes it is on site with due for completion this year or next.

In August, Multiplan acquired a 93,600 sq m site opposite Parque Municipal Getulio Vargas, in the neighbourhood of Moinhos, in the city of Canoas. In its first phase 82 I

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Sonae Sierra’s Passeio das Aguas Shopping development in Goias RELATED CONFERENCES Multiplan plans to develop a shopping centre of approxiTO MAPIC mately 35,000 sq m GLA and this will be its third shopping “International retailers: centre in the southern region of Brazil, and the company´s how to penetrate the goal is to inaugurate this development in 2016.

Brazilian market” Sponsored by Sonae Sierra Also ramping up its Brazilian operation is Prudential Thursday 14 November Real Estate Investors, which has named Adriana Drulla 12.15-13.00 Rossi as investment officer for PREI-Latin America.

Champs-Elysées room Rossi is responsible for sourcing, analysing and executBrazilian Cocktail ing investment projects and activities in Brazil, in coSponsored by Sonae Sierra ordination with the firm’s regional team of investment Thursday 14 November 13.00-14.00 professionals. PREI has been actively investing in Latin Champs-Elysées room America since 2001.

“Adriana’s real estate investment experience adds tremenBrazil projects pitching session dous depth to PREI’s global real estate asset-management Sponsored by Sonae Sierra capabilities,” Alfonso Munk, PREI’s regional head for Latin Thursday 14 November America, says.

16.30-17.15, Lerins room Followed by a networking Earlier this year, meanwhile, Westfield pulled out of its coffee break joint venture in Brazil, although the Australian shoppingcentre giant said that it would continue to explore opportunities in the country.

Westfield decided to dispose of its 50% stake in Sao Paulo-based Almeida Junior Shopping Centers, which it bought for “We are developing a A$440m in 2011, because “the partnerspace where everybody ship was not conducive to the achievement of the group’s long-term objectives will find quality options in Brazil”, according to Westfield coof leisure and chief Stephen Lowy. Lowy adds: “We gastronomy” will continue to independently review Jose Baeta Tomas, Sonae Sierra opportunities in the region in line with our global operating strategy”.

SAINT-TROPEZ

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Tel. +33 (0)4 93 90 40 70 WWW.AZURHELICO.COM

Official partner : PARTENAIRE OFFICIEL

* Voir conditions / Subject to conditions.

TRANSFERT HELICOPTERE

TIPS & SERVICES Welcome to MAPIC! Thank you for attending the show this year. There is much to think about to be fully prepared for this exciting edition, so we’ve designed this tips & services section to help you make the most out of MAPIC. To ensure you start off with a bang, please refer to our Quick Checklist

INSIDE:

Things to do before the Show: Have you prepared your transportation? Have you arranged your transfer to Cannes?

Have you booked your accommodation? (If not, call our accommodation department for preferential pricing on your lodging: +33 (0)1 79 71 99 07/94 54).

Have you visited the Online Database on my-mapic.com to find out in advance who else is attending the show, to set up meetings and discover projects?

1. USEFUL TIPS • GETTING TO MAPIC • UPON YOUR ARRIVAL • THE EXHIBITION HALLS

Have you checked the full show programme of MAPIC conferences, and events not to be missed?

2. SERVICES

Ensure you download the Mymapic App to get the most of MAPIC.

• CONFERENCE • CLUBS • ADDITIONAL SERVICES

Find answers to all those questions on the following tips & services section. For more details please refer to my-mapic.com.

3. GENERAL MAP OF MAPIC

1. USEFUL TIPS GETTING TO MAPIC

Where to get tickets: Desk at Terminal 1: outside arrivals, Gate A0.

Opening hours: 8.00 – 23.00 Desk at Terminal 2: outside arrivals, between gates A1 and A2. Opening hours: 8.00 – 24.00

BY AIR The nearest airport is Nice Côte d’Azur International (NCE), which provides direct flights to many cities around the world.

Promotion code (Air France and KLM): 17899AF www.airfranceklm-globalmeetings.com

• The Nice AirportXpress line to Cannes (bus N°210)

BY TRAIN The Cannes train station is a short walk away from the Palais des Festivals. Please note that the station is currently under renovation. Works might make the access a little less fluid.

T: +33 (0)8 92 35 35 35 www.tgv-europe.com

A one-way ticket costs €17,50 and a return ticket costs €28,50.

Once you are at Nice Airport you have five options: TAXI T: +33 (0)8 90 71 22 27 or +33 (0) 492 99 39 23 taxi.allo@wanadoo.fr BUS You have several options for bus travel. Tickets must be bought beforehand.

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goes to and from Nice Côte d’Azur International Airport and the Cannes bus station via Le Cannet everyday from 8.00 to 20.00 every 30 minutes.

Journey takes 50 minutes.

Where to catch it: Terminal 1: gate A0, platform 3 Terminal 2: between gates A1 and A2, platform 3 • Bus N°200 also goes to Cannes from Monday-

Saturday at 20.45 and 21.55.

Where to catch it: Terminal 1: platform 3

• Noctam’Bus N°200 will get you to Cannes in the evenings. It is available Thursday, Friday and Saturday nights and travels from 23.30 to 04.10 every hour and a half.

Where to catch it: Terminal 1: platform 3

preview magazine I October 2013 I www.mapic.com

CAR RENTAL If you wish to rent a car, our partner Sixt Rent a Car can provide you with preferential rates.

Promotion Code: 9963828 T: +33 (0)8 20 00 74 98 www.sixt.com HELICOPTER Azur Helicoptère is available at the Arrivals Concourse in both Terminals 1 and 2.

The flight duration is 6 minutes to Cannes. A free shuttle service is available in Cannes for transfers between the Palm Beach heliport and your final destination downtown.

Preferential rates are applied to MAPIC participants.

T: +33 (0)4 93 90 40 70 www.azurhelico.com LIMOUSINE Le Privilège Limousine is a Reed MIDEM preferred partner.

Contact: Stéphanie Plot T: +33 (0)6 25 75 34 54 stephanie@le-privilege.com www.le-privilege.com

UPON YOUR ARRIVAL USEFUL INFORMATION ABOUT CANNES The Palais des Festivals is on the seafront at the end of the famous Croisette. It is clearly signposted throughout Cannes.

Address: Palais des Festivals Esplanade Georges Pompidou 06400 Cannes Country dialling code: +33 Time zone: GMT +1 Electricity: 220 volts AC, 50 Hz. Round two-pin plugs are standard Measurement system: Metric Currency: Euro

• MAPIC Awards Ceremony & Gala Dinner Thursday November, 14 - 19.30, Martinez Hotel, salon Galuchat • MAPIC Party Thursday November, 14 - 22.30, Martinez Hotel

THE EXHIBITION HALLS

(LEVEL –1)

The Member Desk provides on-the-spot care and assistance for all the members of our Customer Recognition Programme.

2. SERVICES

REGISTRATION OPENING HOURS (LEVEL 0 - The Registration Hall is located on the Croisette side of the Palais des Festivals to the left of the main entrance.)

(LEVEL –1)

9.00-17.00 Exhibitors have access to all the exhibition areas starting from 8.30 via the Artists’ Entrance situated between the Palais des Festivals and Riviera Hall.

EVENTS FOR ALL DELEGATES

• All MAPIC conferences and events can be accessed

with your MAPIC badge (space permitting).

• Opening Cocktail Party Tuesday November, 12 - 19.30, Majestic Sponsored by

• First Timer Meeting + tour Wednesday November, 13 - Palais des Festivals • Brazilian Cocktail Thursday November, 14 - 13.00, ChampsElysées room

CONFERENCE

Co-sponsored by

HELP DESK (LEVEL –1)

Staff are on hand at this desk to assist you throughout the market. Don’t hesitate to ask them your questions.

INFORMATION POINTS Information points with hostesses can be found at strategic positions all around the Palais des Festivals.

GUIDE AND BAG DISTRIBUTION (LEVEL 0)

Pick up a MAPIC guide at any time during the show by presenting your badge.

THE BUSINESS CENTRE

CLUBS

(LEVEL –1)

Offers a complete range of secretarial and administrative services such as photocopying, word processing, printing and faxing at competitive rates.

Sponsored by

This club is intended for participants without a stand.

Feature include: meeting area, hostesses to help organise your meetings, and coffee-service. Please note that in order to enable all participants to benefit from the business lounge, we kindly request our participants to keep their meetings to a maximum lenght of an hour.

PRESS CLUB

• Friday, November 15:

The MAPIC concierge service provides a number of services, free of charge, including restaurant and taxi bookings, flights and helicopter tours, shuttles, spa reservations and tourism information on Cannes and its surroundings.

MEMBER DESK

BUSINESS LOUNGE

9.00-19.00

(RIVIERA HALL)

• Palais des Festivals (Level -1, 0) • Riviera Hall • Lerins Hall

Oxford Room: Level -1 Champs Elysées: Level -1 Agora: Level -1 Lerins room: Lerins Hall See the At A Glance Programme of Conferences & Events

MARKET OPENING HOURS • Wednesday, November 13 & Thursday, November 14:

CONCIERGE SERVICE

The exhibition zone includes:

YOUR BADGE Your Badge is your primary means of identification during MAPIC. It provides access to all exhibition areas, conference sessions and networking events during opening hours. Please carry it at all times, and be ready to show it at entry points and security points around the area.

E-ticket holders: E-tickets will be sent to you via email a few days before the show. They include a barcode for ID recognition. Print it out to collect your badge at a self-service delivery point or scan the QR Code on your smartphone and save time at the registration hall.

• Tuesday, November 12 : 9.00 - 20.00 • Wednesday, November 13 : 8.30 - 19.00 • Tuesday, November 14 : 8.30 - 19.00 • Friday, November 15 : 9.00 - 15.00

ADDITIONAL SERVICES

(LEVEL –1)

For journalists: includes computers, Wi-Fi, internet connection, a printer and the assistance of a permanent member of staff CHAIRMAN’S CLUB (RIVIERA HALL)

Sponsored by

Exclusive club reserved for chairmen to relax or discuss business in more private surroundings.

Features include refreshments and a dedicated staff.

Entry reserved by invitation.

LEFT LUGGAGE This free service is situated outside the Palais des Festivals on the left of the Registration Hall.

CONNECTIVITY Wi-Fi Free Wi-Fi is available throughout the exhibition on the 2013_REEDMIDEM network. You can connect one device at a time. If you require a customized Wi-Fi service, please contact Viapass.

Online Database The best way to schedule meetings in advance!

• Introduce yourself, your company and programmes to increase your visibility.

• Search among participating companies and visitors to find your future business partners.

• Book meetings ahead of time to increase ROI during the market.

Master Guide To Cannes

GOLD BUSINESS LOUNGE

Enhance your Cannes experience at MAPIC

(LEVEL –1)

MAPIC has joined forces with TripAdvisor and Cannes-IGet.com to bring show visitors the ultimate guide to the Croisette’s hottest addresses. Available via the official Mymapic mobile app and on the MAPIC Facebook page, the Master Guide offers reviews submitted both by TripAdvisor users and by fellow MAPIC-goers. So they can not only find where to eat, drink and stay, but also read peers’ ratings, check in, and share tips themselves. A memorable time in Cannes is guaranteed!

This lounge offers complimentary and personalised business services to the members of our Customer Recognition Programme including a private lounge area, international press, PC & Internet access.

HOSPITALITY SUITES (LEVEL -1)

Hospitality suites allow MAPIC delegates to discuss business in a private lounge.

Visit: my-mapic.com

www.mapic.com I preview magazine I October 2013 I 85

iTIPS & SERVICES 3. GENERAL MAP OF MAPIC CROISETTE ENTRANCE

EN

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LA

PALAIS DES FESTIVALS

CRO

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PROTOCOL ENTRANCE

L -1

LEVE

SS

ACCE

PA

AC

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RIVIERA HALL R L

HA RB O

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LERINS HALL ALL

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EN

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PALAIS DES FESTIVALS Level -1 : Exhibition area Conference rooms Business Lounge Clients’ Agora Hospitality Suites Press Club Level 0 : Registration area

REGISTRATION ENTRANCE

RIVIERA HALL Exhibition area Chairman’s club

LERINS HALL Exhibition area Lerins room MAPIC innovation forum

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