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In Romanian folklore is an immortal golden bird who foretells the future and cures the blind, while changing looks from common to magic, according to the worthiness of the beholder. The superb sculptural representation of “Bird in space” from “Maiastra” series by the famous Romanian avant-garde artist Constantin Brancusi, was auctioned at $27 million in 2006. The same value is committed today by Cocor developers to overhaul the communist era old fashion department store into a post modern deconstructive landmark. Quite like “Maiastra”, Cocor (“Crane”in english) is bound to reborn under a spectacular media façade in downtown Bucharest, trans-branding notable city landmarks such as Times Square and Piccadilly Circus. The global luxury expert, Mr. Milton Pedraza, President of Luxury Institute NY expressed its trust in our project: “I am really happy about where Romania is going, and how fast, although the traffic in Bucharest is a bit crazy. I am also fascinated with the luxury concept Cocor is executing because you and I know Romanians have always adored their luxuries and historically looked to Paris for inspiration. I believe you will be immensely successful”.

Bird in Space (L’Oiseau dans l’espace), 1932-1940. Polished brass, Peggy Guggenheim Collection Constantin Brancusi © 2008 Artist Rights Society (ARS), New York/ADAGP, Paris/VISARTA, Bucharest

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Romanians appetite for designer brands Romania is the second largest market in Central and Eastern Europe with 22 millions consumers and a new member of the European Union since 2007. Romanian born millionaires listed in Forbes doubled in last 2 years, luxury car sales growth has double digit figures, luxury real estate reached Older Europe pricing. Romanians Latin driven appetite for status and high-end brands was fuelled by the real estate boom which created a new social class of estate owners with net worth between 1-3 million euros. In 2008 over 130.000 registered entrepreneurs earn over 4.000 Euro per month. It is estimated that 10.000 wealthy consumers own assets of over EUR 5 million and have a EUR 100.000 minimum yearly allocated budget for luxury products and services. 2009 the financial crisis caused a 8% drop in GDP affected by slowing constructions and lower industrial exports to EU. GDP growth in 2010 is forecasted at 1%. The opportunity brought by the crisis for luxury retail is 44% lower rents and construction costs. Before the crisis, Romanian GDP registered steady growth rates, with the highest value of 8.4% in 2004, and 7.1% in 2008. Total foreign direct investments in Romania reached EUR 7.4 billion at the end of 2007, and a record high of EUR 10 billion in 2008. In Romania has implemented most European Union Directives that protects copyrights. An important issue for luxury brands is the Copyright Law enforcement. A strong argument for Bucharest luxury is that Louis Vuitton, Gucci were involved in several civil and criminal lawsuits since 2003 against counterfeiting practices and due to justice reform they won most important cases. The wealthy people have their resident in the capital Bucharest, Constanza, Cluj and Iasi. In fact of the growing interest in Bucharest and most of the industry is located in the capital it attracts local and int. Business people for new developments and market entrance. The Romanian market is virgin and unexhausted in all business sectors. Especially the luxury market has a huge potential. In Bucharest are some multibrand retailers and mono-brand boutiques of international brands on Calea Victoriei and Magheru Boulevard, but the first fashion designers are missing with a bigger variety of products.

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Bucharest in top 50 European cities Bucharest, once known as “Little Paris�, has over 2 million inhabitants and while Romanian GDP/capita is estimated at 8.000 euros, in Bucharest GDP/capital over 12.000 euros. European Regional Growth Index (E-REGI) published annually by Jones Lang LaSalle put Bucharest as expected to produce the highest output growth ever in next 5 years. In 2008 Bucharest ranks 48 from top 91 European cities based on E-REGI up by 10 positions since 2006 entrance in the top. Bucharest accounts for over 30% of the total retail turnover of Romania high-end brands are being commercialized especially in hotel retail areas, targeting the tourists rather than the general public. The prime retail area in Bucharest counts approximately 45.000 sqm of space. Blvd Magheru ranks this year 39th in the top of the most expensive retail street in the world, 13 positions down against last year. The top, drawn up by the real estate consultants Cushman & Wakefield includes 60 retail streets. The retail spaces rents on Blvd Magheru stood around 960 Euro per sqm, a 44.8 per cent decline on the same period of last year. International fashion retailers: There are only 3 commercial centers in Bucharest: Baneasa Shopping City, Plaza Romania and Jollie Ville, where some high end brands are located. Nevertheless the luxury market is emerging with brands like LVMH Brioni, Canali, Ermenegildo Zenga. Other international retailers present are Zara, Marks & Spencer, Debenhams, Promod, Mango, Intersport, Terranova, Esprit and Peek & Cloppenburg. Cocor will bring a fresh supply on the retail market in spring 2010 earmarked to luxury brands with high chances to shift the location perceptions. On this still transitional market, Cocor has the opportunity to become a leader on the high-end brand market and shift the interest of brands to the historical center of Bucharest. Despite the recent market turmoil, our project become stronger in October 2008, with the 22 milion Euro credit investment committed by BCR the largest Romanian bank part of Erste Group.

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Bucharest Historical Center By the simple scrutiny of the number of luxury cars and villas, most of the companies who paid any interest at all in the Romanian market concluded that it has great potential. As analysts say, what Bucharest lacks so far is a destination for luxury. Bucharest doesn’t have a Fifth Avenue, neither a Bond Street nor a Montaigne Avenue. The prime retail avenues in Bucharest are concentrated on 2 Boulevards: Calea Victoriei and Magheru-Bratianu. The latter is especially well positioned in terms of traffic as it runs as a North-South axis between two very crowded squares: Roman Square and Union Square. Currently, Magheru – Bratianu Bvd is the top rent high-street location, because of high traffic, both pedestrian and automotive, as well as the tenant mix but it is lacking parking spaces. Bucharest historical center is cut into two parts by Bratianu Avenue and is being reconstructed today in keeping with the old fashion architecture. A Luxury Department Store close to the historical center seems to be the only way for Bucharest to become a reference point in the international luxury industry, according to many luxury retailers. Dividing Magheru Boulevard and Calea Victoriei it is the heart of the city and you have the impulse of history and a crowing number of consumers for luxury goods. According to analysts, given the increase in the number of global millionaires and line extensions that bring high-end labels to the hand of mass customers, future growth is the natural trend for luxury fashion houses that innovate. Growth will also be fuelled by the numerous countries worldwide, whose expenditure for luxury fashion outweighs both - salary and available luxury options. As brands become global, it is necessary for them to remain flexible. This means they need to have a greater command of different cultures worldwide, high level of costumer services and the ability to meet different definitions of luxury all over the world. A new luxury brands trend in BRIC countries (Brazil, Russia, India and China) is to leave the 5-star hotels retail space and relocate to specialized department stores to give greater access to the local consumer.

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The New Shopping Destination in the Heart of Bucharest


Location COCOR Cocor is located in the heart of Bucharest. Crossing by the Magheru Boulevard, Street in town (distance 4km and whole street 10km on ten lines) Cocor will be the attraction in traffic jams.

the

biggest

Places of interests: 1. The Parliament (F) 2. National Museum of Romanian Histroy (E)

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3. National Museum of Art (E) 4. Revolution Square (E/Memorial of Rebirth) 5. The Romanian Athenaeum (E) 6. National Militar Acedemy (E) 7. Lipscani Old Centre 8. National Museum of Histrory of Romania (E) 9. George Enescu Museum (E)

West from Cocor is the street Calea Victoriei (E), the major avenue in central Bucharest. Besides five-star-hotels & historical monuments, there are several monobrand and multibrand boutiques of international desgner labels. It will be the place in town for tourism and shopping by the growing interest for luxury goods. Cocor is five minutes by walking away from Calea Victoriei.

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Basement

1st floor

Ground Floor

2nd floor

4th floor

3rd floor

5th floor


Project Cocor will re-open in Spring 2010 with a concept inspired by the Hyundai Department Store Seoul; a department store with brands as tenants with a high level of interior and exterior finishing. It is becoming a pledge for designer’s multinational brands, its target is represented by customer with disposable incomes over 2.500 per month. Interior design was commissioned to JHP Design UK, company awarded in 2008 for ‘Best UK Retail Interior” (www.jhp-design.com). They also have successfully redesigned the Hyundai Department Store in 2007. Cocor SA committed 18 million Euro investment approved by shareholders, for overhaul, 200 cars parking with direct access to each floor, media facade and GLA extension with 30% to 9.500 sqm from a total of 25.000 sqm building space. Basement

- Interior design, gifts & home

= 1045 sqm

Ground Floor

- Jewelries gallery, cosmetics & fragrances

= 1066 sqm

1st floor

- Designer Gallery with Designer labels for men & women

= 1086 sqm

2nd Floor

- Designer Gallery with Designer labels for men & women

= 1088 sqm

3rd Floor

- Women collection, beauty center & day spa

= 1781 sqm

4th Floor

- Men collection & restaurant

= 1691 sqm

5th Floor

- Teens and children collections & Lounge / Club: (event spotlight, lounge bar, boutique night club)

= 1825 sqm

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The total build area of Cocor will be about 24.000 sqm out of them more then 10.000 sqm will represent retail area. Whatever the market evolution will be, the location and brand unity will ensure the overall store stability. Cocor will host multilevel mono-brands belonging to int. networks that are listed in the top of exquisite, prestigious and scale designer brands: watches, jewelers, diamonds, accessories, clothing and shoes. About 60% of the new tenants will represent exquisite and prestigious designer brands, and the rest of 40% will be represented by scale luxury, 60% of the targeted brands will be new entries on the Romanian market. In its backyard, Cocor will build 200 parking spaces which will offer valet parking services, in a 7 level building. Cocor has the largest media faรงade in Europe capable of playing HD quality videos and will offer to its tenant brands the benefits of a 50% rate card discount for advertisements played on it. Each floor will have its 15 sqm double-sided LED Screen where floor tenants can signal their offer and ad campaigns. The 2 larger screens, the branding banner on the second floor, together with LED glass faรงade will display in concert advertising campaigns and non commercial content. Architectural planning and decorations will observe the international standards in order to meet all the prerequisites of the targeted brands.

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Basement - Interior design, gifts & home = 1045 sqm


Ground Floor - Jewelries gallery, accessories collection, cosmetics & fragrances = 1066 sqm


1st floor - Designer Gallery with Designer labels for men & women = 1086 sqm


2nd Floor - Designer Gallery with Designer labels for men & women = 1088 sqm


3rd Floor - Women collection, beauty center & day spa = 1781 sqm


4th Floor - Men collection & restaurant = 1691 sqm


5th Floor - Teens / children collections and Club = 1825 sqm

(event spotlight, lounge bar, boutique night club)


Facilities Besides the fashion destination of goods, accessories and ready-to-wear, Cocor will be attractive with following services & facillities: Cocor Club

- will be a place with a special customers and concierge service. Besides the attraction of shopping, customers are able to get special services.

The Cocor Club is located in the 3rd level on 120 sqm.

Cocor Spa

- will be a place of wellness and beauty. At the moment there is no luxury SPA in Bucharest. Cocor SPA hotel has already the experience with 3.000 sqm wellness area at the Black Sea.

The Cocor Spa is located in the 3th level on 165 sqm.

Lounge

- will be a place after shopping, when the nightlife is starting. Opened after closing of the department store for clubbing or business events and a direct connection to the restaurant.

The lounge is located in the 4th level on 300 sqm.

Restaurant

- will be a place for an high-end restaurant, modern and functional with an exclusive cuisine.

The restaurant is located in the 5th level on 300 sqm

A place for special events is reserved on request at the roof of the building, for private candlelight dinner or outdoor events in a small circle with a beautiful view over the city. Several cafĂŠs and a champagne bar are places to rest and enjoying the shopping.

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Rating

A = Rent value rating

B = Presence Rating

C = Stores no. rating

D = Brand rating

5*

Rent exceeds with more than 50% the reference rent

Brand not present in Romania and will enter it through the owner’s group

Tenant leases between 4 and 3 Mono Brand stores

Brand listed on www.luxuryinstitute.com and tenant is owner

4*

Rent exceeds with 25% - 50% above the medium reference rent

Brand not present in Romania and will enter it through a franchisor

Tenant leases between 3 and 2 Mono Brand stores

Brand listed in www.net-a-porter.com and tenant is franchisor

3*

Rent at the relevance rent

Brand present in Romania through the owner’s group

Tenant leases only one Mono Brand store

Brand listed in www.style.com

2*

2 if the rent is with 15%-25% lower than the reference

Brand present in Romania less than 3 locations

One Multi Brand store

Brand listed in www.instyle.com

1*

Rent less than 25% lower than the reference

Brand present in Romania with more than 3 locations

One Multi Brand store and 20% have a brand rating lower than 2

Brand listed at www.shopping.yahoo.com


Cocor Rating System All leasing bids with a final rating below 3 will be considered unsuitable for the Cocor Store Project. Top-brands retailers that are not currently present on the Romanian market will be automatically qualified for locations in the Cocor if they offer at least the reference rent proposed by the owner. If two competing offers receive equal ratings, note A is the decisive factor. First client per location will have the first refusal right for the best rated tenant offer and the possibility to improve his rating to equal the best obtained for the location. 1. All leasing bids will be rated base on a score from 5 to 1 computed as an average of the following notes A, B, C, D weighted by 50%, 12.5%, 12.5% respectively 25% 2. The final rating of the tenant bid is: Final Rating = 0.5*A + 0.125*B + 0.125*C + 0.25*D 3. All leasing bids with a final rating below 3 wil be considered unsuitable for the Cocor Project. 4. Top-brands retailers that are not currently present on the Romanian market will be automatically qualified for locations in Cocor if they offer at least the reference rent proposed by the owner. If two competing offers receive equal ratings, note A is the decisive factor. 5. First client per location will have the first refusal right for the best rated tenant offer and the possibility to improve his rating to equal the best obtained for the location.

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Project Developer Project developer is Cocor SA, the company who owns the Cocor (Crane in English) department store, a 35 years traditional apparel store which is located on the zero kilometer of Romania from where are measured all the road distances to Bucharest. Cocor SA is a public company listed on Bucharest Stock Exchange, (COCR.BRQ-Reuters) with no controlling shareholder (www.bvb.ro). Cocor’s Market capitalization is 35 million Euro, registered a 300%, 25 stock appreciation in the last 3 years, a 3 million Euro EBITDA for 2007,15%, growth over 2006. Cocor group also controls a 4 star hotel on Black Sea Neptun resort ( www.hotelcocor.ro), which has 120 rooms and where the company develops a luxury SPA on 3.000 sqm, launched in summer 2009, the biggest in Romania by now. Cocor owns the largest Largest media facade in Europe – 3300 sqm, largest DOOH (digital outdoor). These investments will transform Cocor in an exclusivist commercial center, one of the most successful in New Europe. Web : www.cocor.ro Contact Bd. I.C. Bratianu Nr. 29-33 / Sector 3 Bucharest / Romania

phone +40.21.312.4310 fax +40.21.313.9848 e-mail retail@cocor.ro

COCOR

COCOR

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www.cocor.ro

Retail Management Maurice Kozlowski Robert-Jan Brueckner

www.cocormediachannel.ro

www.cocorspahotel.ro


Cocor Store Brochure