MAPIC PREVIEW 2011

MAPIC Preview Magazine

OCTOBER 2011

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mapic

www.mapic.com The official MAPIC magazine

®

preVieW CHANGING CHANNELS

NEW HORIZONS

Also inside:

Retail’s multiple personality disorder

A global vision for stores

• City regeneration • Ireland’s leasing quandary • Expanding retailers • New projects • Italy: Country Of Honour • Focus on Western Europe • Focus on Emerging Europe • MAPIC promises MORE

Can retail property owners and developers benefit from the multichannel revolution?

India, China, Russia and the Americas target Europe for growth, as investors and retailers head for MAPIC SEE PAGE 46

SEE PAGE 38

BUILDING BUILD DING ON N SU SUCCESS! CCESS! C

LE MILLÉNAIRE LE MILLÉNAIRE AUBERVILLIERS AUBE RVILLIERS - FRANCE

Unique Uniqu ue places 13 countries, countries,1.5 1 billion visitors visitors per yyear, ear, almost 400 shopping sh hopping centres centres managed, managed, mo re than 5.2 2 million sq. sq. m more and 1,500 employees. em mployees.

K lépierre and its subsidia ries SSégécé égécé Klépierre subsidiaries and Steen Steen & SStrøm trøm w ork closely together together work with their partners, partners, retailers retailers and local autho rities to to ensu re success successs of centres centres authorities ensure th ey develop develop and manage. manage. they

ST-LAZARE PARIS ST-LAZARE PARIS P ARIS - FRANCE FRANCE PARIS

BELGIUM BELGIUM CZECH EPUBLIC CZECH R REPUBLIC DENMARK D E N MA R K FFRANCE RANCE GREECE GREECE H U N G A RY HUNGARY IITALY TALY NORWAY NOR WAY POLAND POLAND PORTUGAL P OR TUGAL SLOVAKIA SLOVAKIA SPAIN SPAIN SWEDEN SWEDEN

October 2011

Mapic M a apic 2011 201 11

EMPORIA MALMÖ - SWEDEN

AQUA PORTIMÃO PO ORTTIMÃO PO RTIMÃ ÃO - PORTUGAL PORTUGAL PORTIMÃO

www.segece.com www.k lepierre.com 21, 2 1, rue rue llaa P Pérouse érouse - 7 75116 5116 P PARIS ARIS - TTél. él. : + 3 33 3 (0)1 (0)1 4 40 06 67 75 54 40 00 0

Welcome W elcome on our o stand R35 5 09

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MAPIC new online database: Get connected. Stay connected.

Prepare your show schedule Set up meetings with key delegates before MAPIC Promote your company Continue networking even after MAPIC

MAPIC online projects directory Showcase and identify retail real estate projects for FREE at www.mapic.com and www.retailp.com More than 400 MAPIC exhibitors' projects online!

EXPERIENCE the new online database onsite: Demonstrations during MAPIC - Meet us at the Business Lounge!

www.mapic.com

EDITORIAL

COntents i nEWs

Nathalie Depetro MAPIC Director

Dear friends

W

elcome to the MA PIC 2011 Preview magazine, providing you with an overview of what’s happening in the international retail real estate industry and what you can expect to find at this year’s event. MAPIC continues to broaden its horizons with new exhibitors from Turkey, China, Singapore, India and a first time presence from Qatar and Japan.

We’ll also be playing host to over 120 brands that are attending MAPIC for the first time.

We’re particularly excited to welcome Italy as our MAPIC Country Of Honour. Italian retailers are very successful in their international expansion and Italy remains an attractive territory for international retail real estate professionals, retailers, developers and investors. This year we have the pleasure of paying tribute to a retail visionary, Mario Moretti Polegato, chairman of Geox, who is our MAPIC Personality Of The Year and a keynote speaker.

There’s plenty that’s new at MAPIC. We’ve introduced the inaugural MORE programme.

The MORE stand will showcase the latest trends in the retail sector, while our online MORE Vision interactive newsletter brings you the latest developments in retail and provides a platform for discussion and comment.

Another new initiative is the MAPIC power meeting programme. Bringing together financial institutions with developers and investors and masters franchisees with retailers, these meetings are time-effective opportunities to develop business contacts and knowledge.

We look forward to welcoming you among the 8,000 delegates from 70 countries who will be heading to Cannes for what promises to be a vibrant MAPIC 2011.

Nathalie Depetro MAPIC Director

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The big news from MAPIC. This year sees an unprecedented attendance from the major emerging markets, with Europe’s retailers looking for opportunities in growth sectors and a focus on Europe from outside companies. There is also a round-up of all MAPIC’s new innovations and services for 2011.

i invision i projectneWs

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Some of the new companies participating at MAPIC this year

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Despite the development slowdown new schemes have opened in 2011 and more are planned for next year. We provide a round-up of some of the signature schemes completed and under construction.

i retaileye

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Westfield Stratford City opened in East London in September, making it Europe’s biggest opening in 2011 and the largest urban shopping centre on the continent. And now the Australian developer has turned to Italy.

i awards i focus

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For the first time delegates can vote for their favourites for the MAPIC Awards 2011, presented in Cannes during the event

RETAIL’S MULTIPLE-PERSONALITY DISORDER 38 Multi-channel retail innovation is all around, but the real estate industry is in danger of lagging behind its tenants in embracing the opportunities.

A NEW LEASE OF LIFE? 40 Plans to change case law and ban upwardonly rents in Ireland could have a wider impact on rent reviews across Europe.

THE REGENERATION GAME 42 Europe’s major markets have taken very different approaches to city centre retail rejuvenation, with some notable successes.

IN SEARCH OF THE GROWTH FORMULA 46 From single-price discounters to ambitious fashion retailers, Europe’s next generation of expansionists are increasingly eclectic.

A WORLD OF POSSIBILITIES 50 Challenging economic times and the lowering of barriers to market entry mean retailers and developers are on the global trail for growth.

CITIES LEAD FRENCH PRIME TIME 52 Urban centres form the focus for French retail investment.

ANOTHER YEAR OF LIVING DANGEROUSLY More problems for the UK despite the development freeze.

TAKING THE PAIN OUT OF SPAIN Iberian prospects surprisingly upbeat despite the eurozone crisis.

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BENELUX: A SAFE HAVEN? 58 Dutch and Belgian markets prove robust performers.

60 GERMANY MAINTAINS MOMENTUM Investors and retailers still convinced of longterm prospects for German retail sector.

62 INVESTORS FLOCK TO CEE Europe’s east has re-emerged as an investment opportunity but Poland and the Czech Republic remain the region’s stars.

MAD ABOUT MOSCOW 64 Domestic operators have driven Russian retail sales, while investment and development is coming back on-line YOUTH FAVOURS TURKISH GROWTH 65 Unique demographics within Europe and low representation of organised retail mean Turkish growth continues unhindered.

NEW DIRECTION FOR AMERICAS Low rents and high vacancies will not remain for much longer.

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www.mapic.com I magazine I October 2011 I 3

steering committee

Mr Chris Igwe

Mr Peter Wilhelm

Mr Andrew Watson

Head of Retail CBRE

CEO WILHELM & CO

International Director LASALLE INVESTMENT

Mr Christian Dubois

Mr Jean-Paul Fréret

Mr James Napoli

Mr Alain Boutigny

Real Estate & Development Director VIVARTE GROUP

Vice-President Real Estate/Properties Urban Hayman JV, LLC

Editor-in-Chief SITES COMMERCIAUX

Mr Pierre Combet

Mr Robert de Barr

Mr Henrie W.Kötter

Mr Jorge Sanchez

CEO RETAILP

Retail Property Consultant DE BARR Associates Ltd

Managing Director Center Management ECE

Leasing Corporate Director NEINVER SA

Managing Director CUSHMAN & WAKEFIELD

Mr Stefano Stroppiana Retail Real Estate Developer Stefano Stroppiana

mapic preVieW The official MAPIC magazine October 2011. Director of Publications Paul Zilk EDITORIAL DEPARTMENT Editor in Chief Mark Faithfull Technical Editor in Chief Herve Traisnel Deputy Technical Editor in Chief Frederic Beauseigneur Graphic Designer Carole Peres Sub Editor Sally Nash Proof Reader Debbie Lincoln Contributors Nadia Bainbridge, Brian Baker, Eugene Gerden, Anika Michalowska, Graham Parker, John Ryan PRODUCTION DEPARTMENT Content Director Jean-Marc Andre Publications Production and Development Manager Martin Screpel Publishing Product Manager Chealsy Choquette Publishing Co-ordinators Emilie Lambert, Amrane Lamiri, David Le Chapelain Productions Assistant Veronica Pirim Production Assistant, Cannes Office Eric Laurent Printer Riccobono Imprimeurs, Le Muy (France) Published by Reed MIDEM, BP 572, 11 rue du Colonel Pierre Avia, 75726 Paris Cedex 15, France. Contents © 2011, Reed MIDEM Market Publications. Publication registered 4th quarter 2011. ISSN 1961-022X. Printed on 100% recycled paper ®

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magazine I October 2011 I www.mapic.com

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THOR EQUITIES

IS LOOKING FOR ACQUISITION OPPORTUNITIES!!

ACQUISITION CRITERIA TYPE: t High Street Retail, mixed-use properties with a significant retail component/play, including hotel, office and residential. t We are also actively looking to buy large portfolios of assets, primarily retail.

LOCATION: Dense urban markets (at least 100k people in 3 miles).

Visit us at BOOTH #22.01 or contact Rachel Edmunds(212) 432-3051 redmunds@thorequities.com Thor Equities | 25 West 39th Street | New York, NY 10018

nEWs AGENDA Page 6

India and China take centre stage

PAGE 8

Retail regenerates Qatari capital

PAGE 10

EMERGING MARKETS

FDI relaxation could open up India this year

Henderson acquires in Sweden

PAGE 12

MAPIC promises MORE

PAGE 14

Echo invests in Poland

PAGE 16

Retail In The City summit

One of the world’s last great untapped retail markets could open up by the end of this year if new plans are realised to free up the restrictive rules on Indian retail ownership and foreign direct investment (FDI)

PAGE 18

Packed talks schedule for 2011

PAGE 20

Speed match, Asian link

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committee in India, formed to explore deregulation in the retail sector, submitted a proposal earlier this year to Ministers favouring a more open approach, which has sparked a major debate in the country. Conditions on relaxing the laws are likely to include obligations on new entrants to invest heavily in warehousing, food processing and refrigerated transport networks and to create jobs in rural India.

MAPIC will include an Indian Pavilion this year with attendants such as Prestige Estates, which will exhibit just over a year after its successful IPO, and Inorbit Malls, part of K Raheja.

MAPIC exhibitor Xander Group recently took a 14.5% stake in Indian infrastructure business HCC. Since 2005 the company has invested in five funds in the country, including a joint venture with retailer Reliance and the Maker Group and a separate investment with Trent, the retail arm of Tata Group.

Germany’s Metro was among the first foreign retailers to enter India in 2003 with its cash and carry operation, while Tesco and Walmart have opted to form partnerships with Tata and Bharti respectively. In January, Carrefour entered the Indian market with its first, 5,500 sq m cash and carry store.

CHINA REAPS FDI RELAXATION REWARD

Indian opportunity: FDI relaxation is gaining momentum 6I

Also with an increased presence at MAPIC, China will be represented by a number of key players. One is Treasury China Trust, which has acquired the four-storey, 7,600 sq m Huai Hai Mall in Shanghai for e64.2m, bringing total assets under management in excess of e1.37bn.

Meanwhile, China (Outlet) CEO Lin Zhuoygan said the company is targeting projects in 50 cities across China. His vision is for the company’s outlets to form the base for new commercial and social centres within Chinese cities.

Galeries Lafayette plans to open a flagship store in Beijing next year through a joint venture with Hong Kong-based IT and this year MAPIC delegates will be able to take part in a live debate with MIPIM Asia in Hong Kong, courtesy of a live feed connecting the two events.

magazine I October 2011 I www.mapic.com

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i neWs news in brief

Msheireb: A new centre for Doha

MFI acquires shopping centre in ruhr region GERMAN retail specialist MFI has acquired the Lohrhof Center mall in the Ruhr region of the country from Henderson Global Investors. It comprises 35 stores, including Media Markt, H&M, DM and Deichmann. MFI plans to demolish the existing scheme and build the Recklinghausen Arcaden shopping centre with 90 shops and 27,000 sq m. Essen-based MFI — owned by Perella Weinberg — has been the manager of the centre since February 2008, when its business partner Henderson Global Investors, on behalf of the Deutsch Shopping Centre Fund, acquired the scheme and all the existing building rights.

QATAR’S RISING STAR

MFI intends to rebuild Lohrhof

CapitaMalls increases stake in China plazas CAPITAMALLS Asia is to acquire a 50% stake in Minhang Plaza for €191.5m, plus a stake in Hongkou Plaza, which will cost €383.8m, CapitaMalls Asia said. Tenants of the Minhang Plaza include Tesco, CK Jeans, BreadTalk, Starbucks, Charles & Keith, Adidas Original and Haagen-Dazs, while tenants for Hongkou Plaza include Gap, Zara, Carrefour, Pull & Bear, Levi’s, Charles & Keith and Adidas. CapitaMalls Asia CEO Lim Beng Chee said: “These acquisitions will deepen our presence and leasing strength in Shanghai to capitalise on the expected growth in the retail sectors.”

slovakia’s HB Reavis launches first fund SLOVAKIA-based real estate developer and investor HB Reavis Group has launched its first real estate fund, HB Reavis CE REIF. The fund is a Luxembourg-based SICAV-SIF with core strategy, focusing on prime commercial properties in Central European countries. HB Reavis Investment Management expects to raise up to €100m of equity commitments to execute further acquisitions mainly in Poland and the Czech Republic, bringing the total market value of the fund’s asset to circa €330m.

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Qatar’s mega schemes aim to regenerate retail offer in Doha Msheireb Properties’ flagship project, Msheireb, will regenerate and preserve the historical downtown of Doha, while Al Futtaim is pushing ahead with its Doha Festival City project

A

€4bn development, it will revive the old commercial heart of the city through a new architectural language that is based on community living, across a 31ha site.

The Msheireb project will blend traditional Qatari heritage and aesthetics with modern technology, and focus on sustainability and harmony with the environment.

The mixed-use development will comprise more than 100 buildings, with a combination of commercial and residential properties, retail, cultural and entertainment areas. Issa M Al Mohannadi, CEO of Msheireb Properties said: “Msheireb Downtown is fundamentally rooted in Qatar’s heritage but simultaneously seeks to accentuate modern environmental management and international standards in sustainability through its groundbreaking

architectural and design technique.”

Meanwhile, banks in Qatar have completed the funding packages for the two mall developments in Doha: 12-year project finance for Al Futtaim’s Doha Festival City project and a 10year loan for Northgate Mall.

Both deals were finalised during the summer by a group of around four or five local banks lending exclusively in Qatari riyals. The two malls are now under construction and Doha Festival City will include a retail centre, an entertainment park and two hotels. The first phase of the project is the retail complex, which is scheduled to open in 2012.

Allianz has taken an 80% shareholding in the Skyline Plaza — a new shopping mall due to open in Frankfurt/Main in autumn 2013. It has been sold by CA Immo Deutschland and ECE, which have each retained a 10% stake. The total investment volume is around €360m.

magazine I October 2011 I www.mapic.com

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16 – 18 November November e

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Redevco R edevco is an n independent independent international international rreal e esta eal estate te ccompany, ompany, manag managing ing g and © Valode & Pistre FRANCE FR ANCE - B Bordeaux ordeaux

developing eloping one dev one of the largest largest retail retail portfolios portffo olio os in Europe, Europe, currently currently valued valued at at € 7.5 billion. TThe he portfolio po ortffolio o comprises comprises over over 700 properties proper o ties in top top locations locations throughout throug ghout Asia, where we are 16 ccountries. ountries. The The company company also operates operates in A sia, wher ew e ar e building a rretail etail portfolio the larger metropolitan areas, Redevco’s por tffo olio in th he lar ger metr opolitan ar eas, with w a ffocus ocus o on China. IItt is R ede evco’s into Asia well.

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Please our website Corporate Responsibility Report P lease visit ou ur w ebsite tto o rread ead our new C orporate R esponsibility R eport 2010, www.redevco.com w ww.redevco.com

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i neWs SCANDINAVIAN OPPORTUNITIES

Henderson acquisition backs Swedish promise Henderson Global Investors, on behalf of its German business Warburg Henderson, has agreed the acquisition of a prime shopping centre in Sweden from Alecta Pensionsforsakring Omsesidigt, for €61m.

Opened in 2005, the 16,400 sq m Tuna Park Shopping Centre is the dominant centre within Eskilstuna and forms part of the larger Tuna Park retail area. The park also includes a hypermarket, pharmacy and several other big box retailers. The asset has been acquired for WarburgHenderson European Core Property Fund No. 1.

Eskilstuna is located in the expanding Malarden region of Sweden and is well connected by car and rail to Stockholm. The shopping centre comprises 55 stores and retailers include H&M, Kappahl, Lindex and InterSport.

Mike Sales, managing director and CIO of Henderson Global Property, added: “As a company we are increasingly watching the Nordics with interest. In particular, we view Sweden as one of the strongest economies in Europe and forecast strong growth within its retail sector.”

SPANISH SALES SOAR Desigual predicts revenue of €550m SPANISH brand Desigual is accelerating its growth and foresees a total revenue of €550m.

The retailer’s expansion projects include store openings in key shopping areas in Europe (London’s Oxford Street and Konigsallee in Dusseldorf) as well as markets such as Osaka in Japan and Moscow and St Petersburg

in Russia.

Its store network in the US, which currently only consists of a few units, should also expand.

CEO Manel Adell said: “We expect to open around 60 to 70 stores in Europe this year, which should take the amount of sales made internationally up to 75% of the total.”

FAST FASHION IN CEE

Fashion retail giants square up in Bulgaria

Zara and Bershka will face Bulgarian competition from H&M

Henderson predicts strong Swedish market growth 10 I

TWO OF the world’s biggest fashion retailers will go toe-to-toe in Bulgaria next year after Swedish giant H&M announced that it will open its first store in Bulgaria in March 2012, located at The Mall in the capital city Sofia. The store will be a full concept store and will have a sales area of around 2,200 sq m over two sales floors.

H&M CEO Karl-Johan Persson says of the decision: “We see this as a natural step in our expansion strategy. We see great potential for expansion in the country.”

Meanwhile Spanish rival Inditex, which opened its first Zara store in Bulgaria in 2010, has leased over 2,500 sq m of retail space in Globe Trade Centre’s Galleria Burgas.

Zara and Bershka will open their first

shops in the city of Burgas, Bulgaria’s fourth-largest city, with average monthly rents at the mall understood to be around €17 per sq m.

Galleria Burgas, which is due to open next spring, is being developed by GTC Bulgaria with the European Bank for Reconstruction and Development. The scheme will provide 36,500 sq m of net rentable area and 1,200 parking spaces.

SPANISH retail specialist Neinver and Dutch developer MAB will open their joint Roppenheim The Style Outlets in France in spring 2012. The GLA 27,280 sq m scheme will include 107 shops and will also provide 50,000 sq m of green area.

magazine I October 2011 I www.mapic.com

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SUCCESSFUL

PRESENT, AMBITIOUS FUTURE

MAJOR ACHIEVEMENTS SINCE THE CRISIS

• February 2009: Opening of Zagreb Arena, a 15,000-seat Poznan Główny City Center, Poznan

Despite the turbulent economic and financial environment of the last years, the Hungarian-majority owned TriGranit has had considerable success during this period.

Due to its conservative management TriGranit maintains its leading position in the Central-Eastern European region. TriGranit’s major achievements since the crisis commenced and its ambitious plans for 2011 have created a stronger company that will remain one of the top European developers.

Due to the successful business activities, over the past two and a half years the accumulated distribution by TriGranit to its shareholders has exceeded the Euro 36 million.

Emonika City Center, Ljubljana K&H Bank HQs, Budapest

multipurpose sports and entrainment arena (Zagreb).

• June 2009: Secured lease & forward sale of 80,000 m² headquarters of K&H Bank and commencement of construction (Budapest).

• November 2009: Opening of 240,000 m² Bonarka City Center (Krakow).

• January 2010: Commencement of construction of 50,000 m² B4B office project (Krakow).

• October 2010: WestEnd City Center Euro 400 million refinancing (Budapest).

• November 2010: Opening of 200,000 m² Arena Centar and 50% sold to Heitmann Fund (Zagreb).

• In 2010 we have secured tenants for over 80 thousand square meters (Arena Centar, B4B, Millennium projects, Lakeside, and Bonarka).

• March 2011: Commencement of construction on 140,000 m² Poznan Główny City Center (Poznan).

• June 2011: Completion of B4B office project first phase, GBA 39,000 m² (Krakow) 2011 Plans: • September: Groundbreaking of 60,000 m² Poznan Główny City Center, Poznan (phase 1).

• November: Completion of K&H Office project (Budapest).

• December: Commencement of construction on 200,000 m² Emonika City Center (Ljubljana).

SEE YOU AT MAPIC STAND R36.19 TRIGRANIT DEVELOPMENT CORPORATION l H-1062 Budapest, Váci út 3. l Phone: +36 1 374 5600 l Fax: +36 1 374 5601 l www.trigranit.com

i neWs INVESTMENT PLANS BELROM GETS €9.5M FOR BOTOSANI PROJECT BELGIAN developer BelRom has attracted financing worth €9.5m from BRD-Groupe Societe Generale for the completion of Botosani Shopping Centre, Romania, which is due to open in November. The retail development will total 15,000 sq m and host tenants such as Carrefour, Domo, Sensiblu, plus fashion brands New Yorker, House of Art, Orsay and Leonardo. The project is BelRom’s sixth in Romania, after the company opened similar retail projects in Drobeta Turnu Severin, Bacau, Foscani, Sibiu, Braila and Targu Mures.

PLAZA CENTERS TO REVIEW DEVELOPMENT PLANS DEVELOPER Plaza Centers intends to complete the Torun Plaza mall in Poland, the Koreagon Park shopping centre and the Kharadi office building in Pune, India, this year before a full review of its programme for 2012. The company had been planning to start 15 commercial investment projects in 2012 and these plans will be revised and, in line with the new agenda, the company will launch four new projects in the CEE and two housing projects in India.

For H1 2011, Plaza Centers generated revenue of €28.6m and the company’s senior management estimates that revenue and net profit will continue to grow throughout 2011.

MORE AT MAPIC

MAPIC aims for MORE with second trends showcase MAPIC will be showcasing innovation and design trends at the MORE Pavilion this year, which builds on the success of the inaugural MAPIC Lab launched for MAPIC 2010

T

in-depth talks from design and he MORE banconsumer trends specialists, ofner — Today’s “We aim to fering customer insights and intelligence for bring a host sharing global best practice tomorrow’s busiacross the three days of the show. ness — is now the of ideas” (details on MORE, see p. 32) umbrella for a collection of val- Jean-Marc Andre “The MORE brand is a way of ue-added services from MAPIC, MAPIC delivering thought-provoking which includes a bi-monthly oncontent and creating a platform line publication — MORE Vision — on consumer trends. In Cannes MORE will for debate among MAPIC participants and we feature a showcase of eight ‘new shopping ex- aim to bring a host of periences’ presented by Pole de Competitive ideas to the stand this Industries du Commerce (PICOM), a retail year,” said content marketing director trends space and creative solutions galleries.

This demo-zone will be supplemented by Jean-Marc Andre.

Torun Plaza: Latest Polish project from Plaza

VORNADO REALTY WILL MULL IPO TIMING THE INITIAL public offering (IPO) of Toys ‘R’ Us is not likely to take place before the first half of 2012. The New Jersey-based toy retailer is to defer the IPO as private equity owners Kohlbert Kravis Roberts & Co, Bain Capital and Vornado Realty Trust analyse the best time for a sale.

First-time MAPIC exhibitor, New York-based Vornado Realty is one of the largest real estate investment trusts (REIT) in the US, engaged in acquiring, owning and leasing office properties, retail space and logistics warehouses.

12 I

TURKISH REIT Atakule will be at MAPIC, with its eponymous Atakule Shopping Centre remaining its largest asset, representing about a third of the REIT’s value.

HARVEY Nichols pop-up foodmarket opened at Liverpool ONE on September 1 and will remain there until December 31 2011. Miles Dunnett, head of asset management, Grosvenor Liverpool Fund, said: “It adds a unique level of indulgence to Peter’s Lane.”

BELGIAN town planning body AMCV has released a new publication advising on best practice for town centre regeneration projects.

magazine I October 2011 I www.mapic.com

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8 CENTRES EN FRANCE 600 MAGASINS 10 MILLIONS DE VISITEURS / AN 400 MARQUES PARTENAIRES MAPIC, Level 01, Stand 08.12/10.11 Hélène Ribierre

LEADER FRANÇAIS DES OUTLET

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i neWs news in brief DANISH DESIGNER OUTLET DANICA Pension — the investment arm of Danske Bank — has announced the launch of its 16,000 sq m Copenhagen Designer Outlets (CDO) centre, located alongside the well known City 2 shopping centre on the outskirts of Copenhagen, Denmark.

The project is due for completion in March 2013 and will be undertaken by Danica Pension in cooperation with its shopping centre management arm Danica Ejendomme. UK-based designer outlet specialist Ream International will be the development, management and leasing consultant on the project, designed by Haskoll. It will be Denmark’s largest designer outlet centre and is to be created in an existing enclosed environment to comprise 80 store units.

Steve Armitage, managing director, of Ream International said: “There is already a high level of interest in CDO generated by preliminary marketing efforts which is set to further increase following the official marketing launch at MAPIC.”

CDO will be Denmark’s largest outlet centre

FASHION AT MAPIC

POLISH OUTLETS

Echo agrees e18m funding for Szczecin outlet centre Polish developer Echo Investment has agreed an €18m credit agreement with PKO BP bank. The acquired funds will be allocated to the development of Outlet Park Szczecin in Poland.

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utlet Park Szczecin is being developed in Szczecin’s Prawobrzeze district, at the site of an already operational shopping centre which is owned by Echo Investment.

The development of the 24,000 sq m Outlet Park Szczecin is progressing according to schedule and negotiations are being held with potential tenants, according to Marcin Materny, director of the shopping centre department at Echo Investment. Completion of the first phase is planned for the first half of 2012.

Grzegorz Iwanski, director of funding at Echo Investment, said of the agreement: “It is our

first credit signed with PKO BP for a commercial project. It is worth emphasising that it is also one of the first credits with this bank based on the market value of a project.”

Tenants include Reserved, Reebok, Adidas, Puma, House, Lee Wrangler, Atlantic, VIP, Wittchen, Bytom, Vero Moda, Jack & Jones, Ochnik, Coffeeheaven, Wojcik, McArthur, Kazar, Lancerto, Willsoor Group, Lavard, Lee Cooper and Puere.

Echo Investment is one of the largest investment and development companies in Poland.

The company is active in residential, retail and shopping/entertainment centres, office buildings and hotels. The company has been quoted on the Warsaw Stock Exchange since 1996.

MANY of the fashion retailers heading for MAPIC are on the search for space. Superdry, which has 62 stores under the Superdry and Cult brands, wants to open as many as 150 stores in the UK. Internationally, SuperGroup has 73 franchised stores and CEO Julian Dunkerton said. “Our international rollouts are on track.”

Hollister is to open four stores in France this year: Velizy 2, near Versailles, Senart Square, southeast of Paris, and two further provincial cities to be confirmed. The stores will be between 8501,000 sq m in size. Lingerie chain Hunkemoller has opened its first UK shop-in-shop in the Oxford Street branch of department store chain House of Fraser and will open its first Austrian store in Vienna. The Dutch chain currently has over 500 outlets in 15 countries.

MAPIC keynote speaker Jan Heere, director at UK department store group Marks & Spencer, will speak on Wednesday, November 16. M&S CEO Marc Bolland recently pledged £600m for the company’s UK store portfolio, while he has overseen the opening of an eco-store in Sheffield and has announced the company’s return to France.

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EUROPEAN DIY giant Kingfisher has announced plans to expand in Russia, with nine new Castorama stores, located as far east as Ekaterinburg. The company’s Chinese business is also growing after a turnaround programme boosted sales by 8.2% last year.

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SPECIALIST COMMUNICATIONS FOR THE RETAIL ENVIRONMENT FTI CONSULTING IS THE OFFICIAL COMMUNICATIONS PARTNER TO MAPIC

www.fticonsulting.co.uk

F O R E N S I C A N D L I T I G AT I O N C O N S U LT I N G C O R P O R AT E F I N A N C E / R E S T R U C T U R I N G E C O N O M I C C O N S U LT I N G TECHNOLOGY

C R I T I C A L T H I N K I N G AT T H E C R I T I C A L T I M E ©2011 FTI Consulting, Inc. All rights reserved.

TM

S T R AT E G I C C O M M U N I C AT I O N S

i neWs SPECIAL CITY FOCUS

Summit brings together suburban and urban retail FOR THE second year running, MAPIC will hold a unique closed-door event called Retail In The City, dedicated to the future of urban retail. This year it will take place on Wednesday, November 16, 11.00-13.00 and it will be dedicated to city leaders and top decision makers.

The format of the summit will allow participants to share their experience, best practices and thoughts on the theme “Balancing retail development in city centres and suburbs, new challenges”.

The Retail In The City summit will examine the way local collectivities want to manage the complementary relationships between downtown and suburban businesses, questioning whether a model for consultation and management is required and what the actions required and implications are for the different agents involved.

Participants will have to identify the key parts that make this complementary relationship a major asset for the territory and its inhabitants and finally to establish a recommendation guide for the use of local decision-makers. In Cannes, experts will moderate the 90-minute

roundtables, then summarise the discussion and propose solutions.

Bertrand Boulle, president and founder of French-based planning consultancy Mall & Market has been instrumental in establishing the event and reflected: “For centuries, trade has constituted the key component of our towns and cities. However, until recently, the modernisation of retail and the birth of new store formats that took place during economical expansion in the 1960s has, on a matter of principle and fear, been opposed by the defenders of downtown traditional business.”

He believes this opposition between city and suburb was marked by the absence of communication and consultation between the relevant economic decision-makers and local politicians, which often saw the creation of inappropriate commercial urbanism, permanently degrading the environment and the landscape of cities.

“However, I believe that this period is over and that under the impetus of promoters such as investors, planners and local representatives downtown and the suburbs have become one

Bertrand Boulle: Cities and suburbs should work together and the same,” he said. “The notion of population catchment area has become a reality and the complementary nature between downtown and suburb is a necessity.”

Boulle concluded: “Commercial urbanism has invited itself into town. Commercial malls are henceforth associated with projects of rebirth and renovation within the historic heritage of cities.”

FORMER MAPIC DIRECTOR

Nadine Castagna eyes real estate opportunities Former MIPIM and MAPIC director Nadine Castagna will be back at MAPIC this year promoting her new business.

Castagna will be returning to the real estate and retail fields and will be using MAPIC to explore new opportunities.

Castagna worked for international shopping centre developer Corio before joining MAPIC and MIPIM organiser Reed MIDEM in 1990, where she worked initially as a sales manager for MIPIM. She became commercial and marketing director of the Real Estate Division in 1998 and then MIPIM & MAPIC director in 2004.

Among her many achievements with Reed MIDEM, Castagna is credited with helping to build the presence at both MIPIM and MAPIC of this year’s Country Of Honour, Italy. In 2002, she helped to organise and

16 I

promote the first Italian Way in Cannes as a common space where several companies from Italy exhibited together for the first time. She remained a strong advocate of the Italian contingent, even after she assumed overall responsibility for the show.

Castagna added: “My focus is on representing a retailer in France and helping to launch new brands and aid their development. I am also looking at working as a business developer for real estate developers and investors.”

Familiar face: Former MIPIM and MAPIC director Nadine Castagna

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“a day without shopping is a day wasted”

the best way to be happy PIAZZA G. OBERDAN, 3 - 20129 MILANO (MI) - ITALY WWW.CNCC.IT - INFO@CNCC.IT

16-18 NOVEMBRE 2011 - LEVEL 01 - STAND 21.16

i neWs NEW AT MAPIC 2011 ITALY: MAPIC COUNTRY OF HONOUR 2011 THIS year’s MAPIC will feature a host of special events and conference sessions designed to inform and engage participants on the opportunities in Italy, which will start with an Italian-themed cocktail reception on the opening night of MAPIC. Keynote speaker Mario Moretti Polegato, chairman of footwear and fashion retailer Geox, will discuss innovative entrepreneurship and will also receive acclamation as Personality Of The Year at the MAPIC Awards. A number of other conference sessions on Italy have been organised. Finally, a two-day study tour will fly from Nice to Rome immediately after MAPIC, returning to Nice.

Talking shop: MAPIC’s conference sessions cover a huge variety of formats

MAPIC CONFERENCES

MAPIC’s three days of conferences promise a packed agenda Italy: Centre stage for MAPIC 2011

guide of exhibitors projects with retailp.com SPECIALIST Retailp will be providing a special projects guide for MAPIC participants thanks to a partnership with MAPIC. Created as a service from MAPIC, it will go on-line mid-October, and will show approximately 500 to 600 projects located around the world.

President Pierre Combet added: “It’s a great tool because it helps people organise their agenda in advance as we give stand numbers and e-mail addresses.” Available through www.retailp.com, the company covers 14 countries and 158 cities and a new version of the site will be launched ahead of MAPIC.

NEW AT MAPIC AMONG the new features for 2011 is master class where regional leaders share their best practices on retail urban development — 45 minutes of panel discussion, followed by 45 minutes of roundtable debate. During 3 fast-paced Power Meeting sessions, master franchisees and credit providers will meet retailers, fund managers or developers in three-minute introductions from table to table, helping to accelerate their business.

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From keynote retailers to exclusive city summits, speed matching to power meetings, and emerging markets to mature sectors, the MAPIC conference programme covers it all

M

APIC’s conference programme once again offers a diverse range of speakers, topics and presentation styles to suit every need and time requirement. Keynotes this year include Marks & Spencer director Jan Heere on day one, Geox chairman Mario Moretti Polegato on day two and GDR’s Kate Ancketill on the final morning. In addition, Jones Lang LaSalle’s head of retail research, James Brown, will be giving the keynote wrap-up session.

A number of sessions look at aspects of the Italian market in its year as Country Of Honour, while opportunities in emerging markets and on the more developed CEE markets

are also covered across the first two days.

MAPIC will be running its second invitationonly Retail In The City summit, which proved a powerful draw for the key players in urban management and regeneration in 2010, which will be followed by a lunch for participants.

Themes examined across the event also include the future of the high street and what the next generation of malls will bring.

Building on the success of the rapid-fire Speed Matching sessions, MAPIC has also added fast-paced Power Meetings during the show, while a dedicated MORE stand will host a series of talks and workshops examining retail trends and building on the recently launched MORE Vision online trends publications.

Quintain will be on the UK stand, promoting the 35,000 sq m London Designer Outlet at Wembley, north London. The scheme is the only outlet centre inside the M25 London ring road.

Redevco is working on a 17,000 sq m urban regeneration scheme in Bordeaux, France which will link with the existing city offer and add around 10 MSUs and about 20 smaller units.

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i neWs NICHE SERVICES

JAPAN IN CANNES

Brussels and Lyon give Hinton Partners food for thought Hinton Partners will be at MAPIC for the second year running, showcasing the company’s projects such as those in Brussels and Lyon, plus its new strategic partnerships.

In Brussels, the first stage of the Abatan project 2020 will open towards the end of 2013. Merchants will be relocated into the Halle Alimentaire and a number of new food-based tenants will join them.

In Lyon, Hinton Partners is providing consultancy services to Eiffage for the Hotel Dieu project covering strategy, global positioning, communications and marketing. Owner Lara Hinton reflected: “This is a beautiful project, which will create a striking addition to the city.”

Hinton Partners is also working on a new entertainment concept geared towards cities and which can be adapted to shopping centres, and Lara Hinton will be providing one-to-one briefings during Cannes.

Finally, the company will be explaining its new partnership with Geodecision for France and Geoconsulting in Belgium and Luxembourg.

Hinton added: “The key success factor for us has been that Hinton Partners focuses on niche segments and that we take clients and projects from consultancy to implementation.”

Japanese lifestyle brands come to MAPIC after earthquake With the collaboration of Iwate Prefecture, Cool Japan (Ministry of Economy, Trade and Industry), and MIPIM’s award-winning Sustainable Urban Redevelopment Team, the local cities of Iwate Prefecture are exhibiting at MAPIC, with a view to a global cultural store roll-out.

The initiative is in part in response to the impact of the devastating earthquake in Japan and forms one

element of a business strategy that will see the group showcasing carefully selected local lifestyle values and products.

As part of a campaign to promote the local culture, traditional industries, community assets and historical townscapes, the Japanese group is looking to open stores in capital cities outside Japan promoting the country’s culture.

NEW AT MAPIC

MAPIC promises speed matching and live Asia link

The Hotel Dieu in Lyon Speed merchants: MAPIC’s quick presentation sessions are back Germany’s largest property funds manager DekaBank is shifting strategy to review assets more regularly and make more sales. With €22bn AUM, it is targeting annual acquisitions of €2bn€3bn, and sales of about €1bn.

20 I

Having completed a major office building sale in July, ELL Real Estate chairman Aldo Dapon said: “The focus for ELL Real Estate continues to be on the development of retail shopping centres and other commercial buildings. The funds earned from the sale will be used for new development projects.”

At MAPIC 15 retailers and five developers will be given a platform for the popular, rapid-fire ‘speed matching’ sessions in Cannes, delivering time-efficient summaries of their latest offers.

The traditional after-show Awards party

will take place on Thursday, November 17, from 22.00 and is open to all MAPIC participants. Meanwhile, this year delegates will be able to take part in a live debate with MIPIM Asia in Hong Kong, courtesy of a live feed connecting the two events.

magazine I October 2011 I www.mapic.com

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invision UK Land Securities UK REIT currently developing Trinity Leeds development for 2013 opening www.landsecurities.com

Canada Oberfeld Snowcap Canada’s largest retail advisory company www.oberfeldsnowcap.com

Perella Weinberg Independent, privatelyowned financial services firm www.pwpartners.com

USA Vornado Realty Trust Commerical real estate business and part-owner of Toys ‘R’ Us www.vno.com

TIAA-CREF Asset Management Financial services and pension business www.tiaa-cref.org

Denmark Saint Tropez Multi-national fashion brand, part of the IC Companys group www.dk.sainttropez.com

MAPIC 2011: New faces in Cannes MAPIC 2011 will welcome a host of new names from the retail, investment and development sectors. Here are just a few of the new faces heading for Cannes

M Sara Rozenfarb

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ore global, more people, more retailers and more investors. MAPIC 2011 is expecting to see overall attendance up by 8% on last year at around 8,000 participants, with 2,200 from retail groups.

But it is not just the number of retailers which MAPIC sales director Sara Rozenfarb picks out among the positive statistics. “Not only do we have numerous new international retailers joining us to participate or, increasingly, to exhibit but there is an even broader variety of countries represented than last year,” she says. “And among the many new exhibitors we will be welcoming, we will also include some from markets such as India, China and the Far East, plus the Americas.”

Despite continuing uncertainty in the global economic markets, retail real estate has held up well as an asset class and Rozenfarb notes that this is also reflected in the number of investors coming to MAPIC, with a string of new names joining the regular MAPIC attendees.

“Globalisation is definitely very apparent this year,” she says.

Norway Boots Apotek Norwegian arm of the UK pharmacy and health and beauty giant www.boots.no

Netherlands City of The Hague Dutch city currently pushing forward with retail initiatives www.denhaag.nl Belgium City Mall Developer and operator City Mall acquired the Belgian business of Foruminvest last year. www.city-mall.eu

“The increasing influence and importance of Asia will also be reflected in our first ever live hook-up with sister event MIPIM Asia during this year’s MAPIC.” Diversity will also be very apparent, with MAPIC’s eclectic nature meaning that first-timer Amorino, a French exponent of Italian ice cream, will be rubbing shoulders in the hall with another new-to-MAPIC company, Toys ‘R’ Us part-owner Vornado. “This is what keeps the event so dynamic,” reflects Rozenfarb. “And of course we will have a major presence from cities, with significant representation from, for example, Ankara in Turkey and The Hague in the Netherlands.” As ever MAPIC will be introducing lots of new features to enhance the event, while there are further developments for the MORE programme, which made its debut as MAPIC Lab in 2010. Rozenfarb concludes: “The MORE programme, which has started with the launch of MORE Vision publications on retail and real estate trends, will be enacted during MAPIC through a trends-area hosting workshops and discussions.”

magazine I October 2011 I www.mapic.com

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Sweden Kicks Leading Nordic cosmetics retailer and part of the Ahlens Group www.kicks.se Phone Family Independent mobile phone chain based in Stockholm www.photofamily.se

Estonia ELL Real Estate Real estate developer in Estonia, Latvia and Lithuania www.ell-realestate.com Lithuania Dovanu Verslas www.dorado.lt

Hungary TriGranit Developer working across the CEE, having completed €2bn of projects www.trigranit.chu Romania Belrom Belgian-owned developer investing in retail projects in Romania www.belrom.com.ro

Bulgaria Walltopia Sofia-based climbing wall specialist www.walltopia.com Turkey Ankara Chamber of Commerce Organisation targeting investment in Ankara and promoting development www.atoankaraexport.org Atakule REIT Developer with assets including Atakule Shopping Centre www.atakulegyo.com.tr

Israel Rilon Investment Real estate company focusing on the CEE

Switzerland True Religion Swiss arm of premium brand jeans and fashion retailer www.truereligionbrandjeans.com Italy Athmosfera Italian jewellery group www.athmosferia.it Conad Adriatico Soc Coop Group of eight Italian co-operatives www.conadi.it Game 7 Athletics Sportswear and fashion retailer with flagship in Chieti www.game7athletics.com Spain Brickell Entertainment www.brickellvending.com

Eroglu Yapi Developer of commercial and residential schemes www.erogluyapi.com.tr Qatar Msheireb Qatar-based developer currently working on mixed-use regeneration project in Doha www.msheireb.com France Amorino Italian-style ice cream parlour with stores across Europe and beyond www.amorino.com Eco Portrait French photo booth specialist www.ecoportrait.com Max Aventure Activity and children’s play area specialist www.maxaventure.fr Optical Centre Eyewear retailer operating in France, Belgium and Luxemburg www.magasins.optical-center.fr

Ukraine Lybid Investment Company www.oceanplaza. com.ua

Russia Coffeemania Moscow-based coffee chain with 11 outlets, now in its tenth year www.coffeemania.ru Finstroy Holding Real estate developer of shopping malls www.fstroy.com Kinomax Russian cinema chain operator www.kinomax.ru Moneks Trading Franchise operator based in Moscow www.moneks.ru Real Hypermarket Russian arm of German grocery giant, owned by Metro www.real-hypermarket.com China Outlet (China) Limited Designer outlet specialist in China with rapidly growing portfolio www.outletcn.com Singapore Capitamalls Mall developer, owner and manager in Asia www.capitamallsasia.com

India Prestige Estates Indian commercial and residential developer, with over 60 projects in the piepine www.prestigeconstruction.com The Xander Group Fund business working with companies in India www.xanderfunds.com

Secret D’Apiculteurs Lyon-based retailer focusing on honey products Thom Europe Paris-based jeweller

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Learn more about our country of honour 2011 in the Speciale Italia magazine included within your MAPIC Preview We W e would wou uld like like to to thank our supporters: supporters:

PDSLF LWDO\ GRXEOH SDJH DG DG LQ LQGG GG

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A tribute tribute to the contribution co ontributiion off Ital Italyy to state ma market o o the rretail etaail rreal eal eestate arket

I

conic rretailers, etailers, a ffamous amous cuisine and a rrenowned enowneed her heritage itage in textiles – which which have have revealed revealed themselv es th hrough Ital y’s themselves through Italy’s groups been crossing ffashion ashion houses and its luxury l groups - have have bee en cr ossing the world wo orld for for decades. Now the th he luxury houses have have th their heir ffocus firmly ocus firmly sett on the lucrative lucrative Asian markets, m enticed by by the ffact act that Rome Rome hass become the second most most popular rretail etail destination destin nation (after Parris) for for Chinese holidaymakers holidaym makers intent on picking pickingg up luxury Paris) goods the taxes goo ods d without ih h heavy h heavy iimport mport tax es imposed i d iin n their h i own ow wn country. country.

At At home many many of of Ital Italy’s y’s rretailers e etailer s are are rediscovering rediscoveringg the appeal witthin their own borders, borders, having h ving expanded little beyond ha b yond the be within north country, norrth and centre centre of of the co ountry, leaving leaving much much of of the ssouth outh to sm maller independents. Thatt is beginning beginning to change, change, e with smaller devvelopment and rretail etail gr o owth fil tering down into ow hat is development growth filtering what beccoming a gradually gradually more morre affluent affluent part part of of the co ountry. becoming country.

Italy also also finds itself becoming becom ming more more of of a tar get ffor o international or Italy target rettailers, with major US brands brrands among those opening open ning in the retailers, country’s cou untry’s major retail retail centres. centtres.

Mario Ma rio Moretti M reetti PPolegato Mo olegato

TUESDAY TUES SDAY NO NOVEMBER VEMBER 15

THURSDAY THURSD DAY NO NOVEMBER VEMBER 17

19.30 0 Opening Openi ing coc cocktail ktail par party ty

12.00-13 .00 12.00-13.00 Seminar H T o PPenetrate enetrate Seminar,, How To The Italian n Market C o-orrganized b artners Co-organized byy Rustioni & PPartners

THURSDAY THUR RSD DAY NO NOVEMBER VEMBER 17 11.00 0-11.45 11.00-11.45 K eyno ote address address by

by Mar io Keynote Mario Mor ettti PPolegato, olegato, ffounder ounder Moretti and Chairman Ch hairman of of Geo Geoxx Innov a e entr ativ epreneurship Innovative entrepreneurship ffor or a successful s cessful business suc

14.30-16 6.00 14.30-16.00 Pitc hing ssession, ession, Gr eat Pitching Great Pr ojjects FFor or Gr eat Pla yers Projects Great Players C o-orrganized b C Ital Co-organized byy CNC CNCC Italyy 18.30 PPersonality errsonalitty of of the Y eear aaward ward Year to Mar io Mor M etti PPolegato olegato Mario Moretti MAPIC A wards cer emony Awards ceremony

As Italy Italy prepares prepares to launch launch itself once more more upon the MAPIC catwalk, cattwalk, the country’s country’s appeal app peal and opportunities opportunities will w be laid out in a series series of of special conf conference erence events, events, workshop workshops, ps, networking meetings, course through meeetings, the opening cocktail coccktail party party and of of cour s thr se ough the many maany stands taken and participants participants attending. attending . La dolce vita…

PrOjectnEWs Who APM HOLDING, ZWERENZ &

KRAUSE

Who Trigrant Development

and Polish Public Railways

Who Land Securities WhAT Trinity Leeds Shopping

WhAT VILLAGIO

WhAT Retail and travel hub

WhERE PANDORF, AUSTRIA

WhERE Poznan, Poland

WhERE Leeds, UK

WhEN Q2 2012

WhEN Spring 2012

WhEN Spring 2013

Villagio is a new, modern shopping outlet centre rising directly next to the existing outlet centre in Parndorf, Austria. The opening of the first building, which will include 40 shops and approximately 9,500 sq m of retail space, is planned for the second quarter of 2012. The construction of Villagio – developed by APM Holding and Zwerenz & Krause – will make Parndorf one of Europe’s biggest retail locations in terms of both the scale of its shopping area and the breadth of the shopping offer, according to the developers. The central position of Parndorf in the heart of Europe as well as its catchment area of more than 6.2 million people determined the choice of location.

The second building, which comprises about 5,000 sq m, is already in the pipeline and the start of the marketing campaign for the expansion of Villagio will take place at MAPIC 2011 in Cannes later this year, where the project is a first time exhibitor. The opening of the second phase of the development is scheduled for end of 2013 or beginning of 2014.

Trigranit Development Corporation and Polish Public Railways have signed an agreement for the development of Poznan’s new transport complex comprising a railway, fast train and bus station, plus parking for 1,500 cars. Construction of the €160m investment project is scheduled for early next year and the first phase, which features a large retail centre, is to be opened in 2012.

“Poland has always been the flagship destination for our property development activity. We opened our first shopping centre in Katowice five years ago, followed by the Bonarka City Center in Krakow last year,” said Arpad Torok, TriGranit CEO. “In Poznan we can utilise our experience in transforming train stations gained at WestEnd City Center in Budapest and Emonika City Center in Ljubljana.”

Set to open in Spring 2013, the 100,000 sq m Trinity Leeds scheme is now the next landmark retail project due to open in the UK and the urban scheme will improve the city’s core retail by combining a mix of the UK high street, aspiring brands and international retailers. Over 120 modern, flexible retail units will be built, ranging from 10 to 10,000 sq m. Cult, Marks & Spencer, River Island, Hollister, H&M, Topshop, Mango and Primark have already signed up and Trinity Leeds will also provide a key leisure draw, with a 4,000 sq m Everyman Cinema and a range of food and beverage offers including Conran Restaurants, Carluccio’s, Yo Sushi, Giraffe and HandMade Burger.

This deferred project is located in the city centre of Leeds, the UK’s largest financial centre outside of London and the third largest city in the country.

centre

Who Steen & Strohm WhAT Emporia shopping centre WhERE Malmo, Sweden WhEN Late 2012

The €358 million Emporia will offer a total commercial area of 78,000 sq m across 220 stores and is being described by its developer — Steen & Strohm — as “unique of its kind” as the largest shopping mall investment in Europe undertaken by the company. New leases have been signed, including a 2,500 sq m H&M and Max Hamburgare, which will add to over 55% pre-lets which also include ICA, Axfood, Lindex, Kappahl and Clas Ohlson. Situated to the southeast of Malmö, in the heart of Øresund, and close to Denmark, Emporia is an integral part of a huge urban development project that includes the shopping centre, residential units and office space. New road and rail infrastructure has been added, plus a conference centre and a sports complex in an area which sees 37 million travellers transit between Copenhagen and Malmö annually.

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magazine I October 2011 I www.mapic.com

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www.retailp.com The website for European retail property specialists RETAIL INTELLIGENCE FOR PROPERTY PROFESSIONALS

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Some of our subscribers : AAREAL BANK, ACCESSORIZE, ADIDAS, ALTARÉA, APSYS, ARMAND THIERY, BEG/CEFIC, BENETTON GROUP, CAISSE DES DEPOTS IXIS-AEW, CAMAIEU, CARREFOUR, CLAIRE’S, CORIO, CORTEFIEL, CUSHMAN & WAKEFIELD, DOUGLAS, ECE, ECHO INVESTMENT, EFFIAGE ESPRIT, FNAC, FONCIA COMMERCE, FOOT LOCKER, FORNARINA, GEOX, GESCOM COOP ADRIATICA, GRAND VISION - VISION EXPRESS, GROUPE TK DEVELOPEMENT, HAMMERSON PLC, ICSC, IKÉA, IMAX, IMMOCHAN, IMPLANT'ACTION, JONES LANG LASALLE, L'OCCITANE, LVMH, MAPIC, MÉTRO, MISTER MINIT, NIKE, PARASHOP, PETIT BATEAU, PHOTO SERVICE, POINT CADRES, PRINCESSE TAM TAM, REDEVCO, RINASCENTE, RODAMCO, SALOMON, SCC, SEGECE, SEPHORA, SIX SHOP, SONAE, SONY, THE CARPHONE WAREHOUSE GROUP, THE MILLS CORPORATION, THE RETAIL CONSULTING GROUP, UNIBAIL-ESPACE EXPANSION, VALUE RETAIL, VIVARTE, YVES ROCHER…

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iprojectneWs Who Corio

Who Sonae Sierra

Who Redevco Turkey

WhAT Bursa Anatolium

WhAT Passeio das Aguas

WhAT Magnesia shopping

Shopping Centre

shopping centre

centre

WhERE Bursa, Turkey

WhERE Goiania, Brazil

WhERE Manisa, Turkey

WhEN November 2011

WhEN 2013

WhEN Q1 2012

Netherlands-based Corio extended its portfolio by purchasing Bursa Anatolium Shopping Centre, Turkey for €176m and the mall is already operational but will open fully at the start of November. IKEA, Carrefour, Leroy Merlin and Media Markt are among the retailers in the 84,000 sq m GLA centre. Bursa is Turkey’s fourth largest city with a 2.3 million population and is one of the country’s most important centres for the automotive, food and textile industries. Corio Turkey CEO Koray Ozgul’s said: “Anatolium Shopping Centre will be a dominant player not only in Bursa but also in Marmara region thanks to its very strong anchors, original and cozy atmosphere and its sheer size.” Corio entered the Turkish market by purchasing 46.92% of Akmerkez in 2006. It owns 100% of the Ada, 365 and Tekira shopping centres and 51% of Teras Park Outlet, all of which are managed by Corio as well. Also included in its portfolio are the Malatya and Tarsu shopping centres. Corio Turkey said its strategy is to continue expanding in the country, with the opening and acquisition of further shopping centres.

Sonae Sierra has embarked on the company’s 13th development in Brazil. Scheduled to open in the city of Goiânia in 2013, Passeio das Águas Shopping represents an investment of about €164m for what will be the largest and most modern shopping centre of the capital city and the region. The development will have a GLA of 78,100 sq m and a total of 282 stores, eight large stores, a Bretas hypermarket, plus 10 restaurants and an 8-screen cinema. Passeio das Águas Shopping will have 4,000 parking spaces and Cinemark and Magic Games have already confirmed as large stores. According to Fernando Guedes de Oliveira, Sonae Sierra’s CEO described the project as an “important milestone” and said it will enable Sonae Sierra to “Continue to take advantage from the important growth of the Brazilian economy that has allowed us to achieve very positive results in this country”.

Redevco Turkey started construction of the 17,000 sq m Magnesia Shopping Centre earlier this year, with completion anticipated in the first quarter of 2012. Manisa is one of the most industrialised provinces in Turkey’s Aegean Region and the centre will include a 4,500 sq m hypermarket, a 1,500 sq m. cinema complex, 1,500 sq m of food court space and more than 8,500 sq m of retail spread over 65 units.

The three-level shopping centre is located on Manisa’s main road, adjacent to a park. The natural height difference of the site offers the opportunity to create two ground level entrances.

One is situated on the Mimar Sinan Boulevard, the main artery of Manisa, which will create an attractive square with cafés and restaurants looking onto the mountains. The other entrance is on Ali Riza Efendi Street, which connects directly to the neighbourhood.

Redevco has already opened two shopping centres in Turkey: the 50,000 sq m Gordion shopping centre in Ankara and the 32,000 sq m Erzurum shopping centre in Erzurum.

Who CATINVEST GROUP, ADVANTAIL WhAT The West, outlet shopping centre WhERE West of Paris, France WhEN April 2013

The design for The West outlet shopping centre, to the west of Paris, features outdoor walkways protected from the elements by glass canopies, meaning that no energy will be consumed for heating in the common areas, which will be open and airy. Photo-voltaic cells in the roof structure will make the building “energy positive” according to the developers.

The 20,000 sq m GLA scheme will include around 140 outlet units when it opens in April 2013 and is being developed by The Catinvest Group — which is an investment and leasing company with over 1,000 tenants in shopping malls across Europe, particularly in the fashion sector, and Advantail, which operates outlet centres and villages.

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retaileye Westfieldâ&#x20AC;&#x2122;s Stratford City, this yearâ&#x20AC;&#x2122;s biggest European shopping centre development, opened its doors on September 13 next door to the main Olympic stadium in East London

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KEY DEVELOPMENT WESTFIELD STRATFORD CITY

Located adjacent to the site of the 2012 London Olympics, the 190,000 sq m Stratford City is London’s newest retail and entertainment destination and opened on September 13.

Last year, Westfield Group agreed to sell a 50% interest in the retail component of Westfield Stratford City for £871.5m to a joint venture between APG (Netherlands) and CPPIB (Canada). The deal valued the retail component of Stratford City at £1.74bn.

Designed to be edgier than Westfield London (at White City), anchors include John Lewis, Waitrose and Marks & Spencer, plus Forever 21, Hollister, Primark and Uniqlo.

Westfield has now made its first mainland European move and has a new mega-project planned for Milan. In the UK it has also reignited investment in its Nottingham and Guildford schemes and submitted scaled-down proposals for Bradford.

London calling www.mapic.com I magazine I October 2011 I 31

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mapic awards mapic awards 2011

Delegates help decide as MAPIC awards welcome participation The Jury At this year’s MAPIC participants will be able to add their votes to the jury’s choice, adding a new dimension to the Awards which will be presented at the Palais

“R

ewarding excellence, innovation and creativity” has been the M A PIC Awards’ motto for the past 15 years and for 2011 the event, which takes place at a gala ceremony at the Palais on November 17, will reward categories for Best New Retail Development, Best Refurbished Or Enlarged Retail Development, Best Retail Expansion, Best New Retail Concept and Best Retailer In City Centre. As Italy is the Country Of Honour, a special award will

also go to Geox chairman Mario Moretti Polegato, this year’s Personality Of The Year. Initially, the international jury, presided over once again by Cushman & Wakefield’s global head of retail John Strachan, selected a shortlist of three companies in each category, which are then publicised. MAPIC attendees will then have a chance in Cannes to vote in the Awards Gallery at the heart of the exhibition for their favourites. Delegates will make up 50% of the final decision.

President: John STRACHAN

Cushman & Wakefield LLP, global head of retail, (UK)

Alain BOUTIGNY

Sites Commerciaux, editor-in-chief (France)

Frederic Laloum

Altarea, directeur general adjoint / membre du directoire (France)

Klaus Striebich Pierre FRANCIS

AMCV-TOCEMA, executive director (Belgium)

Yann GUEN

Mayland Real Estate, vice-president (Poland)

ECE Projektmanagement, managing director leasing (Germany)

Stefano Stroppiana

Stefano Stroppiana, Retail Real Estate Developer (Italy)

Vote for your favourite projects!

Fast and simple: meet the MAPIC hostesses in the Business Lounge, level 01, to select one winner per category.

Voting starts November 16, 9.00, ends November 17, 12.00.

Supported by:

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Herman KOK

Andrew Watson

Multi Corporation, international markets & research director, (Netherlands)

LaSalle Investment Management, international director, and head of core funds, continental Europe (France)

magazine I October 2011 I www.mapic.com

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MAPIC Awards 2011 Nominees BEST NEW RETAIL CONCEPT

Asics Amsterdam Flagship

Candylicious

Moustaches

The Netherlands

Singapore

France

POLYGONE Beziers

Shopping centre Vleuterweide

Submitted by Wests Design Consultants on behalf of Asics

Submitted by Gill Capital (Singapore) Pte, Ltd

Submitted by Moustaches

BEST NEW RETAIL DEVELOPMENT

Eurovea

Bratislava, Slovakia

Submitted by Ballymore Eurovea, a.s.

Le Millenaire

Aubervilliers, France

Submitted by Icade and Klepierre (SCI Bassin Nord)

Utrecht, The Netherlands

Beziers, France

Submitted by Vastgoed and ASR Vastgoed Ontwikkeling

Submitted by Socri Gestion

BEST REFURBISHED OR ENLARGED RETAIL DEVELOPMENT

Galeria Echo

Milano City Center

Zweibrucken The Style Outlets

Kielce, Poland

Commercial Requalification – Corso Vittorio Emanuele 24-28 – Milan, Italy

Zweibrucken, Germany

Submitted by Rustioni & Partners S.R.L.

Submitted by NEINVER Asset Management Deutschland GmbH

Desigual

Hunkemoller International BV

Submitted by Echo Investment SA

BEST RETAIL EXPANSION

Aldo

Canada

Submitted by Aldo Group

Spain

Submitted by Desigual

The Netherlands

Submitted by Hunkemöller

BEST RETAILER IN CITY CENTRE

Abercrombie & Fitch

Carrefour Market

United States

France

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focus contents P39 RETAIL’S MULTIPLEPERSONALITY DISORDER Multi-channel retail innovation is all around, but the real estate industry is in danger of lagging behind its tenants in embracing the opportunities P40 A NEW LEASE OF LIFE? Plans to change case law and ban upward-only rents in Ireland could have a wider impact on rent reviews across Europe

METRO GROUP SNAPS UP PURE-PLAY

Metro Group’s acquisition of online electronics platform Redcoon brings the platform to the German retailer’s Saturn and Media Markt stores. Redcoon, which carries more than 24,000 products, claims to have more than three million customers and is Germany’s fourth biggest online retailer after Amazon, eBay and Otto Versand. MediaSaturn’s online target is to catch up with European leader Amazon within five years, according to Metro-Saturn’s chief financial officer Rolf Hagemann, who wants to generate €3bn sales annually.

P42 THE REGENERATION GAME Europe’s major markets have taken very different approaches to city centre retail rejuvenation, with some notable successes P46 IN SEARCH OF THE GROWTH FORMULA From single-price discounters to ambitious fashion retailers, Europe’s next generation of expansionists are increasingly eclectic

COLRUYT BATTLES SCALE

Dutch retail group Colruyt, which has a strong history of developing its offer, has expanded its multi-channel offer with click-and-collect through Click&Go, plus a home delivery service for personal and business users called Collivery.

The retailer is now expanding both services to more stores.

EMERGING MARKET DELIVERY

In September Benetton ran a 10-city global campaign – starting in Santiago and ending in Paris - casting for new models

38 I

Turkey’s biggest and longeststanding retailer, the Migros Turkey chain, offers a transactional website for its main Migros and Ramstore fascias, delivering to major metropolitan areas of Turkey on a sliding scale of delivery charges. Compared with the rest of the continent, e-commerce is in its infancy in the east and south of Europe.

magazine I October 2011 I www.mapic.com

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Related conference during mapic 18 November – 11.00 Keynote address by Kate Ancketill,CEO, GDR Creative Intelligence (UK) Science fact: Future retail

making technology work

Retailer’s multiplepersonality disorder In what has fast become a multi-channel environment, many retailers have made significant logistical and cultural changes to their operations, while others are threatened with being left behind. Mark Faithfull picks out some of the early innovators and asks whether the real estate industry has really got to grips with the technology revolution

W

ITH A FEW NOTABLE multi-channel sales of up to £1bn and chief executive and commendable ex- Marc Bolland says: “This will develop M&S into an interceptions among devel- national multi-channel retailer, making the brand more opers, too much of the accessible to more customers around the world.” property industry has ig- Germany’s Otto Group is also forging ahead with online nored the issue of multi-channel retailing, but across the operations and in fiscal 2011 e-commerce was its fastretail industry there are plenty of examples of innova- est-growing sales channel. “E-commerce has become tion. French retailers have pioneered click-and-collect in the most important sales channel for the group,” stresses CEO Hans-Otto Schrader. “We moved into online the food market. At the forefront is Auchan, which has expanded its Drive format to about 60 of its own stores retailing at an early stage and are now benefiting.” and is also a majority stakeholder in Chrondrive, the only The group’s American brand, Crate & Barrel, is crededicated European pure-play, which allows customers ating a website to begin building the brand in the UK to order online or to use a terminal outside the ware- ahead of market entry at Westfield Stratford City, while MAPIC exhibitor Abercrombie & Fitch, which also made house stores to order from a range of 500 products.

In the UK, Tesco operates tesco.com for grocery and su- its European debut in the UK, offers online sales with international shipping to a host of countries. permarket sales and Tesco Direct as a non-food, onlineonly platform. Tesco offers home delivery, although it is Abercrombie & Fitch and its younger fashion fascia, Hollister, have adopted a planning to offer collection from as brand flagship strategy, which many as 600 stores and has extendhas seen Hollister sign up for ed its own Drive trial to 12 stores.

“We moved into prime locations, supported by UK rival and department store remulti-channel. The compatailer Marks & Spencer has predionline retailing at an ny has a highly developed socated its re-entry into France with early stage and are cial media arm and continues a mix of stores and multi-channel, now benefiting” to grow in Europe, but will not pledging to open physical sites in a Hans-Otto Schrader, flood the market with stores as number of key cities, but support Otto Group Abercrombie did in its home most of the country through an onmarket. line offer. M&S aims to achieve

Marc Bolland aims to make Marks & Spencer more accessible internationally through multi-channel retailing

Otto Group CEO Hans-Otto Schrader believes e-commerce is the company’s “most important channel”

www.mapic.com I magazine I October 2011 I 39

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i focus LEASE STRUCTURES

A new lease of life?

Ireland’s controversial attempts to retrospectively end upward-only rents has divided retailers and landlords and could have wider implications for Europe as a whole, explains Graham Parker

T

he finer points of commercial property leases are normally seen as an arcane subject, only of interest to lawyers and property professionals. But in Ireland, rent reviews and commercial rents have become front page news, as the new government looks to tear up decades of case law and change the way rents are settled on commercial properties.

The move is being made in response to the financial crisis that has ravaged the Republic of Ireland over the past four years, and the decade-long property boom that preceded it.

The retail sector was particularly hard hit, according to David Fitzsimons, chief executive of retail trade body Retail Excellence Ireland. He says the new Fine Gael Roadblock: Some fear that the Irish review could spread across Europe government needs to move fast to prevent further damage. “We expect progress on rent clauses, which have crippled retailers in the midst of this unprecedented eco- government was elected on a pledge to go further, actnomic crisis, in which we are seeing one shop after an- ing retrospectively to enable stressed tenants to chalF&C REIT along other closing down, and job after job lost every day of lenge exorbitant commercial rents. with its partner, the week,” he says. “Retailers must be enabled to get re- While the move is welcome news for hard-pressed reArea Property tailers, commercial property lief from their current rents Partners, withdrew from a experts are less enthusiastic, and upward-only rent clauses deal to acquire claiming that the prolonged must be abolished.” the €350m Liffey “Retailers must be uncertainty has brought the He points out that retail rents Valley shopping enabled to get relief centre from Aviva investment market to a halt. rose on average by 240% and Grosvenor in “The investment market is from 2000 to 2007, while from their current rents” February. It was non-ex istent,” complains consumer prices only inset to be one of David Fitzsimons, the biggest Larry Brennan, head of recreased by 30% during the Retail Excellence Ireland transactions in tail at Savills Ireland. “And same period. And consumIreland since the it won’t come back until er prices have fallen back by downturn, but fell through largely there’s debt finance availa30% since, while rents payabecause of the ble have remained static under Ireland’s system of up- ble. But who’s going to lend when there’s a potential rent threat of abolition decrease?” ward-only rent reviews. of upward-only rent reviews on The previous Fianna Fail government had already ta- Upward-only reviews have been equally controversial in all existing leases bled legislation to ban the controversial upward-on- the UK but, despite strong lobbying by retailers through in Ireland. ly rent reviews on all new leases, but the incoming the British Retail Consortium, successive governments

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have refused to legislate to change the system that protects investors from fluctuations in the rental market.

And, paradoxically, since the downturn began in 2008, pressure for reform has eased as new leases have reacted to market forces and alternative ways of settling rents have emerged.

According to the latest research from the British Property Federation and Investment Property Databank, the average new retail letting is now for a term of 5.7 years, meaning that the traditional five-yearly upward-only review is irrelevant, because on lease expiry rents can fall back to market levels under UK law.

However, the market is struggling to find a new standard to replace the old certainties, according to Charles Miller, director at Jones Lang LaSalle (JLL). “It’s really difficult to be specific because there’s no longer a lease that meets all needs,” he says.

One trend he has noticed is the growth in turnover-related rents. “As a landlord, you shouldn’t be afraid of it — if you believe in your location, you’ll get your return,” he says. “But it requires a degree of openness from both sides that isn’t always there.”

David Kenningham, a director at CBRE, concurs.

“Leases of 10 years or more are still achievable, but fewer have rent reviews, and more have rents related to turnover or tied to the Retail Price Index,” he says.

But he warns that turnover-related rents are not a universal panacea: “A lease to a music or homewares retailer can’t be the same as a lease to a fashion retailer because their margins are different — one could be making 20% and the other 60%. The market needs to recognise that we will have to work in partnership to a degree.”

JLL’s Miller muses whether a move to the 3/6/9 lease — the system that applies in much of mainland Europe — might be away of kick-starting new retail development. “That rewards developers for their risk earlier,” he says.

He believes new development is badly needed.

Uncertainty: F&C REIT and Area Property Partners withdrew from a deal to acquire the €350m Liffey Valley “Efficiency in retail only really comes from new development, and if that’s not happening, how can retailers change? Retailers need to have a sensible discussion with landlords for retail development to happen again.”

But once the market returns to normality, and leasing of new developments begins again, nobody is betting on lease terms reverting to the norm. Behind the financial turmoil, fundamental changes have been taking place in the retail industry, driven largely by the emergence of multi-channel retail. That could drive a whole new wave of lease reform.

• Some analysts fear that Ireland’s example could trigger a series of rent reviews throughout Europe.

• A number of landlords and retailers in turnover or baseplus-turnover deals are already debating where a sale originated if it was made online and picked up instore, or where a product returned to store should be offset.

• International sales delivered through click-andcollect, especially through third-party partners, could add a further layer of complexity.

Irish landlords are awaiting a political resolution but analysts worry new development is being hampered www.mapic.com I magazine I October 2011 I 41

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i focus

Related conferences during mapic 17 November – 12.00 How to penetrate the Italian market?

17 November – 16.30 Prerequisites for retail development in the city

URBAN STRATEGIES

The regeneration game Although the US has paired retail with residential to great effect, and the UK’s approach has also shown some good results, some European countries have opted for protectionist planning laws instead. Nadia Bainbridge considers what works best

Seattle, Washington, is an example of “great downtown management” according to Civitas’ David Feehan

R

etail has been one of the key drivers of urban regeneration, but it is not the only factor. Nigel Poad, director of Insite Asset Management, and formerly head of acquisitions at department store group Debenhams, says: “Regeneration cannot be led solely by retail; it needs to be about the regeneration of ‘place’. The focus will often be on the provision of better retail, but this may in fact mean less retail overall.”

This means making some tough decisions. “It must be backed up with a clear plan of what to do with those elements that are no longer suitable or needed for retail,” says Poad. In the UK, much progress has been made in big centres such as Birmingham and Bristol (see panel) but this is not where the attention should be, according to Poad.

“The smaller provincial cities and towns need the most 42 I

help. These secondary locations will not immediately attract regeneration funding from the private sector, nor will the public sector have the resources to assist.”

You only need to look at Liverpool to see that largescale regenerations have taken off in the UK, where the economy has permitted, but in other countries this has proved harder. By contrast, France seems to have got it right, with its high streets dotted with cafés and independents, but some think the country has paid a price in terms of diversity.

“The smaller provincial cities and towns need the most help” Nigel Poad, Insite Asset Management

A snapshot survey of retailers hit by the UK riots has found they lost over 7,500 hours of trading and more than 11,000 members of their staff were affected by the violence. The sample was made up of British Retail Consortium members responsible for a total of 27% of UK retail sales. The research has been submitted to the police to contribute to their impact assessments, and will be used in the trials of alleged offenders.

magazine I October 2011 I www.mapic.com

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i focus

The regeneration game

Since 1973, a law that requires special retail planning permission for developments over a certain size has protected French town centres. As a result, every new development had to provide an impact study. However, the law is now believed to be contravening European competition legislation, and changes have been brought in to make the planning situation much more open.

Despite this, making changes to French town centres is difficult. “Town centres are architecturally very protected and ownership is fragmented,” says Steve Cowen, Grosvenor’s Paris-based investment director. In addition, the protected lease system means rents are low but retailers have to pay big premiums to get on a site. This makes the sector a little less dynamic, explains Cowen, but also more resilient. “I’m not sure it is a good thing.

The UK system means the best retailer concepts can pay the best rents and get the best units. In France, the system is a lot slower because existing retailers benefit from a protected rent.”

That said, Apsys is pushing ahead with its urban development in Metz. The 36,000 sq m GLA Muse, adjacent to the TGV station and including a strong residential element.

Apsys’ urban development in Metz, France

BEST IN CLASS US — Seattle, Washington & Boulder, Colorado

Being able to boast one of the US’s strongest retail names as its chief resident has probably done more than a little to help boost the fortunes of Seattle, Washington. But, while Nordstrom’s flagship store in the heart of the city has helped to cement the city’s retail fortunes, its retail regeneration is all its own. David Feehan, former CEO of the IDA (International Downtown Association) USA and president of Civitas Consultants, says great downtown management and lots of residential development were key to its success. At the other end of the scale, he points to Boulder, Colorado. “Both have been the beneficiaries of stable, strong leadership in terms of public-private partnerships. Both have achieved a high degree of retail success. Both have a great mix of national and international chains and smaller independent retailers, as well as great dining and entertainment,” he says.

UK — regeneration, retail and riots

The UK riots that rocked the country in the summer brought regeneration into sharp focus. Julie Grail, chief executive of British BIDs and managing director of Partnership Solutions, says the mayhem challenged people’s sense of safety and security and “inevitably some will now be questioning the appropriateness and attractiveness of town and city centre locations for mixed-use developments with residential.”

Birmingham and Bristol are still held up as the UK’s finest examples of retail-led regeneration, both of which used a BID model to manage both relationships and delivery.

But these are both top-rated towns — in the “mid to low range” locations things have faltered during the recent slowdown. The trick going forward will be to move these places on and, as Grail points out, the key will be mixing up the offer.

Italy — Lombardy and Liguria

The Cabot Circus development in Bristol, UK 44 I

Lombardy and Liguria, both in northern Italy, have some of the most advanced regeneration projects in Italy. Getting the mix right was crucial to their success, says Elena Franco, CEO of TCM Italy, but she adds that “accessibility, mobility and events are also important elements to consider in a strategic plan for revitalisation.” This meant getting both the public and the private sector on board, and Franco says this included the Municipality, retailer associations, insurers and shopping centres. Once the actual structures were in place, another key was the use of structured town centre management programmes, which were led by Professiona Manages (professional town centre managers), she says.

MORE @ #MAPIC11 Retail City Summit Wednesday, November 16, 11.00-13.00. By invitation only.

For the second year running, this closeddoor event dedicated to city leaders and top decision makers will allow participants to share their experience, best practices and thoughts on the theme “Balancing retail development in city centres & suburbs, new challenges”.

Co-organized by Mall&Market.

Master Class Cities Thursday, November 17, 16.30-18.00 What Does A City Need For Retail Real Estate To Take Off? To entice commercial enterprises to come back to city centres, policies need to be put in place to support development of the housing market and other economic projects. Coorganised with AMCV/TOCEMA

magazine I October 2011 I www.mapic.com

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Der Konkurrenz voraus! Wie unsere Leser.

DER KONKURRENZ VORAUS ist auch die Einkaufs- und Erlebniswelt Eastgate in Berlin-Marzahn. Mit 150 Shops und Fachmärkten, einem fabelhaftem FoodCourt und einer großen Event-Plaza für kulturelle und Sportveranstaltungen, mit viel Platz für Streetsoccer, Beachvolley-Ball und Freeclimbing, vereint die Mall Shopping und Lebensgefühl unter ihrem markanten Dach.

UNSERE KOMPETENZ FÜR IHREN ERFOLG. Mediengruppe Immobilien Zeitung. www.immobilien-zeitung.de

NEUE MALLS ODER MODERNISIERTE SHOPPINGCENTER – das ist unser Thema. Als führendes Fachmedium informieren wir Sie täglich per E-News über das Wichtigste aus der Immobilienwirtschaft und berichten wöchentlich im klassischen Zeitungsformat umfassend über die zentralen Themen der Branche. Als Abonnent der Immobilien Zeitung erhalten Sie den täglichen E-Mail-Newsletter kostenlos und können jederzeit in unserem Archiv recherchieren – in über 100.000 Beiträgen!

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i focus

Related conference during mapic 17 November – 9.30 How active are retailers in EMEA ?

NEW RETAIL

In search of the growth formula As domestic markets mature, an increasing number of European, US and Asian retailers are looking overseas for further expansion. Mark Faithfull looks at a few of those with a global agenda

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uch has been the rapid globalisation of some of the biggest retail brands that cities like Berlin, Paris and London find themselves in a competition previously reserved for the national stage. Paris’ fiercely protected Champs-Elysees was pushed forcefully into the frame earlier this year when UK retailer Marks & Spencer (M&S) announced its shock return to the French market.

Marks & Spencer’s decision to re-enter France came almost a decade to the day after it pulled out. The retailer will embark on a bricks-and-clicks strategy by opening a 1,500 sq m food and womenswear store on the ChampsElysees and a euro-transactional website to serve consumers across the country.

In addition, M&S intends to open its standalone food offer Simply Food in and around Paris. The stores are likely to be run by franchise partner SSP and suitable locations are now being sought.

The UK’s second largest sports fashion retailer, JD Sports, also has the French market in its sights. The retailer has embarked on an aggressive international expansion programme since the acquisition of the 47-store Sprinter chain, which will create the platform for the rollout of JD stores in Spain. In 2009, the JD Group acquired Chausport, which operates 75 stores throughout France.

Nigel Keen, group property director at JD Sports, insists: “We are targeting the main urban areas across France to build upon the successful opening of three trial stores in Lille, Paris [Evry 2] and Lyon.”

US retailers have moved into Europe in unprecedented numbers, usually using London as the springboard.

Value fashion chain Forever 21 finally made its debut in the UK capital with its second British store in July, while Williams-Sonoma, the upmarket US home furnishings and cookware chain, is the latest retailer thought to be planning entry into the UK next year. The 560-store retail group has appointed agent Harper Dennis Hobbs to help it achieve its ambitions.

Otto Group-owned rival Crate & Barrel is also looking at opportunities to enter the UK, with its first store to be at Westfield Stratford City, and is to launch a UK website to kick-start its brand-building.

No doubt encouraged by the success of sister brands Abercrombie & Fitch and Hollister, embattled US

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American Apparel, going for growth with expansion into Europe fashion retailer American Apparel is also gearing up for a fresh round of European expansion through department stores. The UK’s Selfridges will add the brand to as many as half a dozen stores in the coming year.

Meanwhile, Galeries Lafayette in France, which already sells American Apparel at its Paris flagship, has expanded distribution and plans to introduce the brand at several more outlets.

One price, one vision Ireland is intended as a European platform for single-price retailer Poundland, which will launch new fascia Dealz in October prior to entering the rest of Europe. It chose the name so it could offer several price points. Poundland has just shy of 350 stores in the UK and wants a total of six stores in Ireland by the end of its financial year in March 2012.

Chief executive Jim McCarthy says of the decision: “It was important to ensure we decided on a brand name that was going to enable us to expand the brand in mainland Europe.” The UK’s 99p Stores launched in Ireland in September as €uro 50 Stores. The retailer plans a further 150 stores across the UK and beyond in the next four years.

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In search of the growth formula

Whole Foods Market has also ended its expansion hiatus and begun talking of a wider European move again, though Best Buy’s ambitions are on hold after a difficult introduction to Europe.

Many retailers are also looking east. US department store retailer Saks has announced its intention to open a licensed Saks Fifth Avenue store in Almaty, Kazakhstan, in August 2012.

The three-level, 9,000 sq m store will anchor the Esentai Shopping Mall and will be part of Esentai Park, a new mixed-use centre that will also include luxury residential and commercial towers, as well as a five-star hotel.

Aygul Amirzhanova, CEO of the VILED Group, insists: “We believe Saks Fifth Avenue will be a great addition to Kazakhstan, making a terrific contribution to the citizens of Almaty and the entire country.”

Also making its move in the CEE, Brussels-based Delhaize Group acquired Serbian retail conglomerate Delta Maxi Group, which operates about 450 stores across five countries in southern Europe. Combined with Delhaize’s existing operations in Greece and Romania, the Delta Maxi acquisition has made the group a leading retailer in the region.

The move has also put Delhaize head-to-head with adversary Carrefour, which entered Serbia last year through Greek franchise partner Marinopoulis, and Germany’s Metro Cash & Carry, which opened six stores last year.

Global ambitions: beyond Europe

The US’ Forever 21 debuted in London in July

4,000 — the number of stores Uniqlo plans to have by 2020, increasing its portfolio by about 3,000

The UK’s JD Sports, already in Spain, has its eyes on France

Expansion with attitude: Kooples 48 I

Whole Foods Market, considering European expansion

• After a lengthy enquiry, Walmart received permission to buy South African retailer Massmart this year in a deal expected to energise the African market and encourage retailers to go pan-continental • Spanish clothing chain Zara, owned by Inditex, will make its African debut at the Sandton City shopping mall in Johannesburg on 10 November • At the end of August, Tesco announced its plan to sell its Japanese business because it could not build a “sufficiently scalable” operation • A think-tank paper from the Indian government recommending the abolition of its strict Foreign Direct Investment (FDI) rules has ignited international interest in the subcontinent

Luxury heads for China A wave of retailers have raced to establish a foothold in prime Chinese locations and the country’s major cities, prompting the likes of Louis Vuitton to increase its store portfolio to 36 stores in 29 first- and second-tier cities, while some leading luxury brands have pushed even further into China, including Cartier, which opened in the county-level city of Yiwu, in east Zhejiang province. In its results in August, Tiffany & Co said it would open four more stores in China, one in Taiwan and three in Korea, two of which have already opened, in this financial year.

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focus contents P52 CITIES LEAD FRENCH PRIME TIME Urban centres form the focus for French retail investment P55 ANOTHER YEAR OF LIVING DANGEROUSLY More problems for the UK despite the development freeze P56 NOT ALL PAIN IN SPAIN Iberian prospects surprisingly upbeat despite the eurozone crisis P58 BENELUX: A SAFE HAVEN? Dutch and Belgian markets prove robust performers P60 MOMENTUM STAYS WITH GERMANY Investors and retailers still convinced of long-term prospects for German retail sector P62 SPLIT AND POLISH Europe’s east has re-emerged as an investment opportunity but Poland and the Czech Republic remain the region’s stars P64 MAD ABOUT MOSCOW Domestic operators have driven Russian retail sales, while investment and development is coming back on-line P65 YOUTH FAVOURS TURKISH GROWTH Unique demographics within Europe and low representation of organised retail mean Turkish growth continues unhindered P67 NEW DIRECTION FOR AMERICAS Low rents and high vacancies will not remain for much longer

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SCANDINAVIA ON THE UP

The Swedish shopping centre market will outperform Europe over the next five years, with rental growth of 3.5% in 2011 alone, according to Schroder Property, the real estate arm of the investment manager.

Scandinavia’s largest shopping centre, the 120,000 sq m Mall of Scandinavia, is being developed

by Unibail-Rodamco, and the boutique mall MOOD, by AMF Fastigheter. In Malmo, Steen & Strom is developing the Emporia shopping centre, a 93,000 sq m project revived last year and which should complete in 2012.

The company is also behind a 120,000 sq m mixed use project in Goteborg, which is due for completion by 2014/2015.

WALMART A CATALYST FOR AFRICA

Capitalworks Investment Partners has created a $1bn fund focusing on Mozambique, Zambia, Ghana, Nigeria, and Mauritius, while the Rutley Capital Partners/Capital East African Property Fund has a war chest of $350m. At MIPIM in March, Rwanda took its first ever exhibition stand promoting investment opportunities in capital Kigali. These included a retail scheme to be anchored by Woolworths, which operates in 12 African countries accounting for 5% of sales. CEO Ian Moir has pledged to accelerate growth and to enter Angola, predicting that continental sales would become significant within five years.

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Related conference during mapic 16 November – 16.15 East or West, which is the best? Retail investment from Atlantic to Urals

europe overview

A world of possibilities Europe’s retail markets can rarely have offered up such a diversity of opportunities and challenges, with some eurozone countries suffering from critical macro-economic issues while others attract investment and strong retail growth. Mark Faithfull introduces our focus on some of the key markets across the continent and beyond with a look at what 2012 might bring

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— down 36% on the previous year, ow h e r e i n which was 30% lower than the peak Europe com“Retailers have in 2008. However, new space could be pletel y avoid become more boosted 53% to 2.9m sq m if all the ed the developopen-minded schemes under way complete before ment slowdown year end, with the highest levels of acabout where but several retail markets — as ditivity in Turkey (1.3m sq m across 26 verse as Poland, the Czech Republic, they expand” schemes), Russia (856,000 sq m, 19 Turkey, the Balkan states, Germany, Guy Grainger, schemes), and Poland (712,000 sq m, Scandinavia and, perhaps surprisingJones Lang LaSalle 21 schemes). ly, Spain — have bounced back fast.

The development market is also acOthers, such as the UK, Ireland, tive in much of Central and Eastern Greece and Portugal remain deeply mired in macro-economic problems. Indeed for UK re- Europe (CEE). Space under construction in the Ukraine tailers the attraction of the mainland has probably nev- (285,000 sq m) will almost double its stock, while the er been greater, a fact which Jones Lang LaSalle head space available in Serbia, Croatia, Slovakia, Bulgaria, of UK retail, Guy Grainger points out meant “the num- and Romania will increase by at least a quarter. ber of UK retailers at MAPIC was very noticeable last By contrast, in Western Europe, Italy (394,000 sq m), year.” In his view there will be even more this November. Germany (369,000 sq m), and Spain (356,000 sq m) have “Retailers have become much more open-minded about the largest amount of new space under construction.

Westfield’s new project in Milan should re-energise the where they expand,” he adds.

The shortage of shopping centre development across north of Italy and bring in new players, while Germany Europe has restricted retail expansion and with more is high on the agenda for a number of retailers. Andreas available space planned in emerging countries next year, Trumpp, head of research at Colliers International in retailer growth could well be biased towards less mature Germany, adds: “Retail properties, and especially shopmarkets. According to CB Richard Ellis (CBRE), around ping centres, are still a major area of focus for investors.”

1.9m sq m of shopping centre space was completed in 2010 Spain, too, despite its economic uncertainty has enticed retailers such as Primark, which will be one of the fashion anchors at British Land’s joint venture Puerto Venecia project, set to be Europe’s largest retail and leisure centre when it opens next year.

Growth engine: Primark is snapping up space

Mad, bad and determined to grow: Banana Republic’s Mad Meninspired fashions are increasingly evident in Europe

Walmart should prove a catalyst in Africa www.mapic.com I magazine I October 2011 I 51

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i focus france

Cities lead French prime time While France remains a target for both real estate investors and retailers, demand is increasingly focusing on prime sites and quality schemes both in Ile de France and in the regions. Anika Michalowska reports

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hanks to the relatively secure and stable nature of the French market, France continues to be highly sought-after by local and foreign investors alike, and has attracted many specialists, traditional players and newcomers. In 2010, e3.6bn was invested in retail, representing a 112% increase compared with the average of the past 10 years (e1.7bn) and retail’s market share was 33% compared with a 10-yearly average of 14%. Foreign retail investment represented 39% of the total retail investment in 2010, with German investors accounting for 18%, British 7%, South Korean 6% and Dutch 5%. For Gilles Boissonnet, chairman, executive board, at Altarea France: “The French real estate market has taken up some dynamism in sales and

in its qualitative development.” Meanwhile, Jean-Michel Silberstein, managing director at Conseil National des Centres Commerciaux (CNCC), forecasts: “The trend will be maintained in the same period next year.”

While GDP growth remained low in France in the first quarter of 2011, up 1%, this performance was better than expected, although the economy continues to suffer from high unemployment. This economic backdrop is leading French consumers to be more careful in their spending, although according to shopper research conducted by SymphonyIRI, impulse-buying seems to be back, with French consumers saying that 14% of their shopping was not planned, the first increase in four years, although still well below the 2005 figures (23%). The luxury sector is

shop stats In all, 23% of the new shopping centres will be located in Ile de France, totalling almost 25% of the additional shopping area, with 11 new projects: 14% in Provence-Alpes-Cote d’Azur (11 projects); 10% in Aquitaine (7); 8% in Rhone-Alpes (6); 8% in LanguedocRoussillon (5); and 34% in the rest of France. One third of the new shopping centres will be in city centre locations.

Source: CNCC.

East meets west: Japanese retailer Uniqlo’s flagship in Paris 52 I

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Related conferences during mapic 16 November – 9.30 Keynote address by Jan Heere, Director, Marks & Spencer (UK) 16 November – 15.00 France Focus

also recovering. “Many luxury and upmarket retailers were actively opening stores in France during the first quarter of 2011,” says Pierre Reynal, head of retail agency at Cushman & Wakefield France.

According to the latest figures from CNCC, footfall at shopping centres is slightly down, but those shopping are spending more. “Consumers are there, they like to indulge in shopping providing they are given the desire to discover new brands, new products, new experiences. It is one of the major challenges in the next few years for shopping centres operators,” says Silberstein. “Shopping centres will have to renew their retail mix, attract new concepts and foreign retailers.”

Unibail-Rodamco, Klepierre Segece and Apsys are among the developers taking up that challenge in their most recent schemes, while consultant Terranae, which manages nine centres across France, insists asset development is crucial in the current market. “In our schemes we make a point of focusing on a differentiating the offer, which will make all the difference,” says Maurice Bansay, CEO of Apsys. Hollister, New Yorker and Tally Weill are some of the international brands taking stores in the 45,000 sq m renovated and extended Beaugrenelle shopping centre in 15th arrondissement of Paris, due to open in spring 2013 and touted as the leading real estate project in the city (developed by a consortium consisting of Gecina, Apsys, Fonciere Euros, Rallye and the local authority for Paris Orleans).

The 56,000 sq m Millenaire shopping Supply growth will help retailers like Zara centre developed by Klepierre Segece and Icade opened in the Paris suburb France by 2016, representing 3.3 milAubervilliers last April and welcomed “It takes up to lion additional sq m, of which 2 million many Spanish, Italian and Portuguese sq m is for shopping centres and 1.3 milfive years now retailers, but also French names, such lion sq m for retail parks. Some of them to start ticking as Polinesia, Decimas, Dubble, Felice are included in major urban renovaover normally” +, Culture of Colors, Les Filles aux tion schemes, such as Beaugrenelle in Longs Bras, with Italian OVS industry, Jean-Michel Silberstein, Paris, Lyon Confluence, Les Terrasses making Le Millenaire their entry point CNCC du Port in Marseille, La Halle en Ville to the French market. Spanish retailin Mantes, Muse in Metz and Aeroville ers MaryPaz and Eurekakids will also in Tremblay-en-France, plus the extenopen there soon. With investors targetsion of Polygone, which will add 20,000 sq m in 2016. ing only the best assets and locations, supply of prime “Several recently opened shopping centres have sufsites remains limited in France. “We have witnessed a fered a sluggish launch. Let’s hope developers will be lot of research and demands,” says Chris Igwe, head of reasonable in rental prices for future new schemes,” retail at CB Richard Ellis. For retail brands, the prior- says Michel Pazoumian, managing director at the urity remains quality schemes, regional shopping centres, ban federation Procos. successful and proven retail parks and traditional shopping streets. The rhythm of opening was slow during first quarter of 2011, but more than 1.2 million sq m of new or renovated retail space is planned by 2012, 530,000 sq m Shopping centres: supply trends (2011-2014) for shopping centres and 690,000 sq m for retail parks, ac2011 390,465 sq m cording to CNCC. “The commercialisation of new shop2012 596,000 sq m ping centres is more difficult today, and it takes up to five 2013 1,220,576 sq m years now to start ticking over normally,” says Silberstein.

2014 1,231,366 sq m CNCC lists more than 193 retail schemes proposed for

New and active in France International retailers: Apple, Hollister (15-20 stores), H&M, New Yorker, Coach, Starbucks, McDonald’s, Uniqlo, Aloja de Gasto, MaryPaz, Eurekakids, Kiosk, AS Adventure, JD Sports, Tally Weill, Marks & Spencer (1,400 sq m store on three levels in Paris on the ChampsElysées by the end of 2011; followed by M&S Simply Food on “strategic sites” in and around Paris), Banana Republic (2011 on Champs Elysées), Levi’s (2012 on Champs Elysées), Forever 21 (2011), Inditex (2012).

National brands: Gamm Vert, Jardiland, Gifi, Auchan (7-8 new hypermarkets by 2014; development of Auchan City, city centre small supermarket concept), Casino (20 small supermarkets specialising in halal food in the near future), Carrefour (with fascias Carrefour City, Carrefour Planet, Carrefour Express), Monop’, Celio/ Jennifer, Beaumanoir.

Source: Cushman & Wakefield

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i focus UK

Another year of living dangerously With the brakes on development and low consumer confidence, Nicola Harrison asks what retailers have to do to prosper and emerge from the prevailing gloom

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t has not been the easiest of years for UK retailers. Store groups were rocked by a VAT rise in January, rising costs, deflated consumer confidence that has been exacerbated by the coalition government’s austerity measures and, more recently and far more unpredictably, riots in major cities — and shops — up and down the country. As a result of the tough economic

Land Securities’ Trinity Leeds project remains one of the few major developments under construction

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headwinds, a string of retailers are closing stores where they can, including Mothercare, Game, HMV and Thorntons. The UK has seen some high-profile administrations too, including Habitat, TJ Hughes and Jane Norman.

Major cities such as London, Manchester and Liverpool remain popular with expanding retailers, at the expense

• Poundland — the value player wants to open 60 stores next year, including five Dealz stores in Ireland • Supermarkets — all are desperate to open more convenience stores. Asda wants to open 250 smaller format stores • Supergroup — the fashion brand wants 20 stores this year and next • Phone shops — continuing to be aggressive. Phones 4u doubled its portfolio this year to 270 shops • Forever 21 — the US fashion powerhouse has said it wants 100 shops in the long term in the UK • H&M — the Swedish fashion giant focused on UK expansion this year, after opening 25 stores last year, taking its UK total to 200.

• Banana Republic — parent Gap has said it wants to grow its overseas business from 13% to 30% of group sales by 2013 and sees Banana Republic in the UK as a key source of growth

magazine I October 2011 I www.mapic.com

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Related conference during mapic 16 November – 12.00: The future of the high street: lessons shared

of smaller market towns and local high streets that lack the footfall large shopping centres can offer. As a result, the government has begun a much-needed review into the UK’s high streets.

Next year, the trend of falling consumer confidence, contraction of retailers, and polarisation between large regional centres and secondary high streets looks set to continue. Craig Bales, property director at value retailer Poundland, one of the few retailers with an aggressive expansion strategy, says: “It’s tough, although the worst is yet to come. We are still to feel the real impact of the proposed welfare cuts, tax hikes, job cuts, cost price and utility cost increases.” Jones Lang LaSalle head of UK retail Guy Grainger, adds: “The austerity measures have hit a lot harder than retailers anticipated. Spending is being really affected at the moment.” He says the best many retailers can hope for next year is for sales not to fall any further. Many retailers, such as value fashion chain New Look, have put the brakes on expansion because of declining sales in the tough conditions, whereas others, such as River Island, are seeing better opportunities overseas.

Some retailers see the troubled economic climate as an opportunity to expand in the UK, but supply of retail space is scarce, even though some demand is there, making competition for good space fierce. Bales says Poundland is finding good deals in the market, but adds that competition is intensifying. “We are operating within an increasingly competitive sub-market in the value sector,” he says.

No new shopping centres are scheduled to open next year, as schemes were mothballed by developers during the downturn. Some think the lack of new construction is no bad thing. Justin Taylor, chief executive of UK retail and leisure at Cushman & Wakefield, says: “We don’t particularly need more space. Next year will be about recycling existing space.”

After the opening of Westfield’s Stratford City in September, there will not be any more major shopping centre space coming on stream until 2013, when Land Securities opens its Trinity Leeds scheme. David Kenningham, executive director, retail agency, at CBRE, says that this opening will not change matters greatly, pointing out that “it’s just one scheme” and that it is unlikely that anything else will open before 2015. He believes retailers will continue to be cautious in their expansion over the next few years. “I don’t think there will be a massive change in retailers’ appetite for new space,” he says. “Retailers will continue to look to their existing estate for growth and continue judging opportunities on their merits.”

Taylor says next year retailers will “drive multi-channel really hard”. House of Fraser, for example, opened a click-and-collect store in Hammerson’s Union Square scheme in Aberdeen in September — the first such

Single price retailer Poundland has been one of the recession’s big winners opening for any major retailer, reflecting the growth in demand among consumers for a variety of channels.

This year, pure-play retailers have continued to grow strongly, including fashion player Asos and Amazon, and that looks set to continue as Brits enjoy the convenience of ordering online. This, of course, presents another set of problems for the high street.

While the UK market has had its difficulties, it is still an attractive place to be for retailers, with high sales densities the prize for those that can make it work. However, as Grainger says, in the increasingly competitive retailing environment, store groups need a strong differentiator to stand out among the crowd and survive.

A CBRE study has found that retailers can now operate from fewer, higher quality locations.

The study revealed store groups can access 50% of the UK population with just 90 shops, compared with 200 in the 1970s.

The UK’s shop vacancy rate was 14.5% in July, up from 13.6% in June, according to the Local Data Company. Last year, vacancy rates were 12% on average, with a clear north/ south divide, revealing “black spots” in the north and Midlands, while the south, and in particular London, fared better.

River Island: The fashion retailer is looking outside the UK for growth www.mapic.com I magazine I October 2011 I 55

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i focus SPAIN AND PORTUGAL

Taking the pain out of Spain Despite economic problems on the Iberian peninsula, good schemes are attracting international retailers, says Brian Baker

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pain has become a complex market. The debtdriven problems afflicting both Spain and Portugal in 2011 are hampering retail growth, but Sandra Campos, head of retail in Portugal at agent Cushman & Wakefield, counters “although new retail space will be limited in the next three to four years and the economic circumstances will impact heavily, there are good opportunities for retailers to expand”.

The second phase of Puerto Venecia, near Zaragoza, owned by British Land and Orion Capital Managers, will

open in 2012 with 120,000 sq m of retail and leisure set around a lake.

Nick Hodson, head of European development at British Land, says: “We are expecting a gradual recovery in consumer confidence in the next 18 to 36 months. This, combined with the shortage of new quality schemes coming to the market in this period, reinforces the case for an autumn 2012 opening of the final phase of Puerto Venecia.

“Exceptional regional projects that deliver to retailers’ fundamental requirements can get good traction in this

Abercrombie & Fitch (A&F) will open its first store in Spain by the end of 2011, following other US-owned newcomers Apple, Forever 21 and the A&F-owned Hollister Mango, Cinesa, H&M, El Corte Ingles and Primark continue to expand in Spain, with all of these opening large, flagship stores at Puerto Venecia Deichmann is expanding into Portugal. The German shoe retailer will have four stores open by December 2011 and plans to extend that to 20 stores by 2013

In at the deep end: Puerto Venecia will open in 2012 with 120,000 sq m of retail and leisure 56 I

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market. However, there may well be few other schemes that fit this profile in the immediate pipeline.”

He believes shopping centres need to provide a much broader range of experiences to stay relevant in the future. Leisure consultant Gaston Gaitan contributed to the innovative elements that will combine with spectacular public spaces to complement the flagship retail offer at Puerto Venecia.

A late addition to new space in 2011 will be the 56,000 sq m Muelle Uno in the port area at Malaga, and Cancelas in Santiago de Compostela will open in late 2012, but there will be little further new space in the following two years.

In Portugal, a 60,000 sq m mall in Braga will open and Multi Development is building 45,000 sq m of retail as part of a mixed-use scheme on brownfield land in the Lisbon suburb of Alverca. A 16,000 sq m scheme by Madford and Imorendimento will open in late 2012 in Evora, becoming the area’s first modern shopping mall and bolstering the retail park element that opened in autumn 2011.

Spain’s unemployment rate has been more than 20% through much of 2010/11, but its population grew by 14% in the first decade of the century

German shoe retailer Deichmann is expanding into Portugal

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i focus

Related conferences during mapic November 17 – 16.30 New Generation of Shopping Malls: What’s next?

November 18 – 11.00 Keynote address by Kate Ancketill,CEO, GDR Creative Intelligence (UK) Science fact: Future retail

BENELUX

A safe haven?

The Benelux countries fared well through the euro crisis in mid-2011 and may be a safe haven for money, reports Brian Baker

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he Luxembourg market is mature and all developments there were put on hold in 2009, but the extension of the Belle Etoile mall west of Luxembourg city has restarted and will open in 2013.

There is still not enough of the space that retailers want on the prime streets and malls, especially in Belgium.

At the higher end, the market is in balance and is likely to remain so.

In July, Brussels City Council announced the longawaited mixed-use Neo scheme in the Heysel Plateau, where construction will begin in 2014. The local authority will conduct a tendering process for a private developer partner early next year. The mayor of Brussels is leading this project, which is fully backed by the region and should boost investor confidence. An estimated investment value of €900m will see 80,000 sq m of retail built in the first phase.

Arno Ruigrok, associate director at Multi Development, says: “We think inner-city developments, including redevelopments of existing retail property, are the most promising in the Netherlands at present. These are usually mixed-use. We are able to do schemes with only 6,000 sq m of retail. In Belgium, the smallest we would consider would be 15,000 sq m.

“Large schemes are now only possible in the very best locations. We expect smaller projects to be more attractive in the next few years. Projects also have to be flexible enough to decrease in scale at a late stage.”

He adds: “People will keep on coming to physical stores, especially for fashion. H&M has been very successful with a large new store in the heart of Amsterdam. The bigger cities will be the most attractive because people will want to be there as well as to browse and buy. We think passive leisure is very important, as is location.”

Multi Development and AM start, in close co-operation with the City of The Hague, are also working on the €80m New Hague Passage, which includes 10,500 sq m of shops and a 118-room Suite Hotel. The Sting, Douglas, Intertoys and Miss Etam are among the early retailers to sign up.

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Brussels confirmed the mixed-use Neo scheme in July, with construction to start in 2014 Retail parks have proved very successful in Belgium, especially since 2008, though rents are still fairly low. That is expected to continue through 2012.

H&M is likely to increase its portfolio of stores by around 10% across the Benelux in 2011/12. It is now expanding into retail parks in Belgium.

Other expanding international retailers include Mango and New Look, as well as Irishowned Primark, which will open in Almere in December 2011 and Tilberg in 2013, doubling its Dutch presence. Dutch retailer The Sting is expanding across Europe.

The Sting in Eindhoven, a brand that is due to open in New Hague Passage

While inflation in Belgium rose to 3% during 2011, it also has a rising population, growing by over 6% in the first decade of the century.

The population of the Netherlands increased 5% in the same period.

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i focus GERMANY

Germany maintains momentum Berlin is driving the ongoing retail boom in Germany, but lack of new space and lending restrictions are frustrating international retailers wanting in, says John Ryan

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ermany remains the engine room of the European economy, and although consumer sentiment may have softened recently, this remains the benchmark by which others judge themselves. GDP

grew by 5.2% year-on-year in the first quarter, according to figures from the Federal Statistical Office, while salaries and private expenditure grew by 2% and 1.9% respectively in the same period.

The big are getting bigger Lettings in the 2,000 sq m+ category increased from 4% to 9% during the first half of the year, compared with 2010. At the other end of the spectrum however, 70% of all lettings were for units under 500 sq m, according to Jones Lang LaSalle.

This is a retail market featuring the very big and the relatively small.

Bright lights, big city: The media façade at IFM’s Zeilgalerie, Frankfurt/Main 60 I

magazine I October 2011 I www.mapic.com

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Related conferences during mapic 17 November – 16.30 New Generation of Shopping Malls: What’s next?

17 November – 16.30 Prerequisites for retail development in the city

All of which means that Germans keep shopping and de- market and growing. mand for shops remains, in general, steady. Indeed, de- Karsten Burbach, head of retail Germany for CBRE, mand for prime pitches in the largest cities is very strong says: “Berlin is the German city that will have the greatand there is a general undersupply, according to agent est shopping development in the next four to five years.

There are so many excellent developments already in Cushman & Wakefield, with requirements also rising in place. You can’t work in Germany withthe smaller cities. Unlike a number of out being in Berlin.” other European economies, even secThis may be the case, but high unemondary locations across the country ployment and limited job opportunities are seeing rising demand, according “You can’t work do make this a city that relies heavily on to agent CB Richard Ellis. in Germany federal funds and a rapidly expanding Leading the pack, in terms of comwithout being tourist sector for its continued growth. pound growth over the next five-years, in Berlin” “Bankrupt, but sexy,” is the verdict of will be Berlin, although whether this Andreas Kogge, head of retail leasing is the result of starting from a lower Karsten Burbach, Berlin at Jones Lang LaSalle. He adds: base is a moot point. In real terms, CBRE “For investors, it has a lot of potenMunich is at the top of the pile when it tial for the future. In other cities, priccomes to digging deep for prime pitch. es are already high and retail is quite Rents in the city in June ran at e3,960 per sq m, followed by Frankfurt at e3,249 per sq m with strong here.” He cites high demand from foreign retailBerlin, Hamburg, Cologne and Stuttgart all equal third ers as helping to maintain momentum in the capital and elsewhere. on e3,120 per sq m.

The big story, however, is Berlin. With a population of And given the current state of the German retail propclose to 3.5 million, there is no other German city close erty development sector, foreign and domestic retailers to it in terms of size. It may have a consumer-purchasing may struggle to find appropriate sites in the near future. index of 0.9 (compared with the norm of 1.0), 10% low- “The development pipeline is rather dry,” says Burbach. er than the national average, but this is still a massive He adds that banks are looking for 40% equity from retailers and developers in new shopping schemes so that they only have to contend with 60% debt. “This is definitely an issue [as far as new developments are concerned],” he says.

Major developments in the pipeline include the 70,000 sq m Thier-Galerie in Dortmund, scheduled for completion this autumn, the Boulevard Berlin (81,000 sq m GLA) and the 40,000 sq m Leipziger Platz, also in Berlin. Also noteworthy is the Bikini Berlin development in the west of the capital, which will see the regeneration of the area around the zoo.

Other than that, it’s largely a matter of remodelling and refurbishing existing stock, with the 13,700 sq m GLA mixed-use Goetheplaza in Frankfurt (due to be completed in 2014) standing as a strong example of the tendency.

This is one of the few markets in Western Europe in which retailers are crying out for more quality space rather than bemoaning its super-abundance.

Media Saturn is expanding its store network, and not just in Germany

Retailers chasing space The sudden influx of international retailers into Germany, a phenomenon of the past two years, has added to the pressure on prime locations in the big cities. Hollister, Urban Outfitters, Uniqlo, Muji, Forever 21 and Disney are just some of the names that are now routinely bandied about when new locations become available and most are prepared to pay a premium for an appropriate site.

There are also signs of expansion among a number of the homegrown sports retailers and brands, including SportScheck and Adidas, both of which are still seeking new outlets, as are some of the big consumer electronics brands, with Saturn looking particularly aggressive.

Sports giant Adidas, on the look-out for new space

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i focus CEE

Investors flock to CEE Poland is the stand-out success of the CEE region, but it is not the only story in Europe’s east, according to Eugene Gerden

Helical Poland’s Europa Centralna near Gliwice is over 65% pre-let ahead of its opening next year

D

espite the economic slowdown, high quality retail property in Central and Eastern Europe (CEE) is still attracting strong interest, with the value of investments amounting to e2.4bn in the first half of 2011, mainly due to sustained growth in Poland, the Czech Republic and, to a lesser extent, Hungary.

Jones Lang LaSalle (JLL) predicts that direct investment in the CEE’s retail property market will increase in the coming year. The agent’s head of European retail capital markets, Jeremy Eddy, says he expects emerging European markets to see increased investment volumes by the end of the year.

In Poland, the supply of new retail space will total 550,000 sq m in 2011, including the completed Galeria Sloneczna in Radom, Galeria Twierdza in Zamosc and Galeria Leszno in Leszno.

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Among the projects scheduled for completion later this year is Galeria Kaskada in Szczecin, while Silesia City Center in Katowice is being extended. In addition, Wolf Bracka, a new shopping centre, is to open in Warsaw.

The 200,000 sq m Galeria Katowicka, Neinver’s largest investment in Europe, will include 250 shops in a JV with the Polish railway infrastructure company, PKP. The scheme involves creating a new railway station, an underground bus terminal, a shopping centre, an office building and an underground car park.

“It is one of our most ambitious projects, as part of the company’s strategic plan for internationalisation,” says Jose Maria Losantos y del Campo, president of Neinver.

However, ECE Projektmanagement CEO Alexander Otto warns that pricing for Polish retail property could deter investors, saying: “Properties are over-priced for what you get.”

Futura Park Kraków will open on October 18, developed by Neinver and combining an outlet centre with a traditional retail park.

The first level of the two-storey building hosts Factory Kraków, a 22,000 sq m outlet centre housing 120 stores including Tommy Hilfiger, Benetton, Mango, Desigual, Lancerto and Giacomo Conti.

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Related conferences during mapic 16 November – 16.15: East or West, which is the best? Retail investment from Atlantic to Urals 17 November – 15.00: Poland – land of opportunities for investors and tenants. Still key target for international retailers?

Meanwhile, the Czech retail property market, traditionally dominated by international investors, mainly from the UK and Germany, also remains promising, with more investors increasing their presence. Among the latest deals is the agreement of Austria’s CA Immo and Germany’s Union Investment to buy two regional shopping centres in the Czech cities of Teplice (32,000 sq m) and Mlada Boleslav (22,000 sq m) from Czech property firm CPI for e96m.

The Hungarian retail property market appears stable this year, with only one major retail centre having opened, the 5,600 sq m Europeum on Blaha Lujza ter, developed by Ablon. Among the projects scheduled for completion by the end of the current year are The KOKI Terminal (55,000 sq m) the Arkad Szeged (34,000 sq m) and Siofok Pláza (6,000 sq m), as well as the 11,000 sq m Vaci1 shopping centre by Orco Property Group.

POLISH RETAIL MIXER

The Polish Council of Shopping Centres and METRO Group Asset Management, together with Diva Poland, have organised the Energizing Polish Retail Mixer at the Da Da Da Club in Cannes.

The event will bring together Polish and foreign MAPIC participants, seeking the opportunity to network and relax.

Da Da Da Club 15, Rue Des Frères Pradignac, Cannes November 16, from 22:00 Invitations are free but places are limited from the PRCH Meeting Point at MAPIC (Stand 20.18 - 22.13)

Romania and Bulgaria are re-emerging as retail hubs

Czech mate: Tesco continues to expand in the Republic www.mapic.com I magazine I October 2011 I 63

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i focus

Related conference during mapic 16 November – 17.15 Most attractive submarkets for new retail development in Russia

RUSSIA

Mad about Moscow Although most of the recent development activity has focused on Moscow, retailers and developers are likely to start turning their attention to Russia’s smaller cities, reports Eugene Gerden

S

ince the beginning of 2011, the Russian retail property market has been growing steadily, amid increasing market competition and increasing demand for retail space. During the first half of the year, three new retail centres opened, all of them in Moscow: the 180,000 sq m AFIMall City in Moscow’s business centre, the 17,000 sq m Planernay mall, and the 20,000 sq m Severnoe Siyanie, located in the Northern Butovo region.

Among the major projects scheduled for implementation in 2012-2013 are three more shopping centres in the Moscow region. Finnish developer YIT will be in charge of their construction, as well as a 40,000 sq m outlet mall

by Fashion House and Liebrecht & Wood Investment Fund on the Leningrad highway in Moscow.

In the meantime, few major players plan to open new retail centres in Russia in the short term. IKEA Group, which operates a network of 12 Mega shopping centres in Russia, plans to focus instead on modernising its portfolio in the short term, rather than opening new stores, according to Irene Johansson, IKEA marketing manager for Russia and the CIS regions.

The most active retailers include grocery operators Magnit, X5 Retail Group, Diksi and Billa and consumer electronics retailers M.Video and re:Store Retail Group.

According to Roman Evstratov, director at Colliers International, retail expansion will continue and is expected to switch focus to the regions, including small cities with populations of around 200,000.

Evstratov adds: “Growth by both local and foreign players is expected to take place through the acquisition of local chains and retail centres.”

Lada Belaychuk, deputy head of research at Cushman & Wakefield, adds: “The Russian retail market is now in the classic situation of post-crisis recovery — retailers are seeking expansion, but existing supply cannot meet their growing demand.”

RUSSIAN BREAKFAST November, 17, 09.00-12.00 Salon de la Croisette, Hotel Majestic, Cannes, France The 13th Russian Breakfast in Cannes will include discussions on shopping centres as a brand, plus analysis of the Russian retail market development.

Registration: www.imevents.ru

64 I

• Over the past six months Wendy’s, Kitchenette, American Eagle Outfitters, Tally Weijl, Petit Patapon, and Pandora all opened in Russia.

• Rumours abound that Apple may be preparing to open its first Russian store.

• Mango, Metro Cash & Carry and Auchan plan to strengthen their presence in Russia in 2012.

Castorama, o’Key and MediaMarkt anchor the Otrada scheme

The 75,000 sq m Tyumen will open in late 2012

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i focus

Related conference during mapic November 16 – 16.15 Expanding footprint in emerging economies – A retailer’s portfolio of high yielding stocks

TURKEY

Youth favours Turkish growth A young population, low levels of retail per capita and strong consumer demand mean Turkish development is pushing ahead fast, says Brian Baker

T

urkey’s economy grew by 11% in the first quarter of 2011 and its population continues to increase. The country has a young population, with over 50% of people under 30. Rent levels in prime locations returned to growth in mid 2011 and there were 26 shopping centres in construction in summer 2011, with over 30 more extensions and new centres expected onsite in the second half of 2011 and in 2012. The reason is not difficult to work out: despite recent growth, Turkey still has less retail space per head of population than other European countries. As of the end of 2011, GLA per 1,000 capita is set to be 125 sq m, nearly 100 sq m below the European “Turkey does average.

“If a project is good, fi- not have as nance is readily available,” much debt as says Feroze Bundhan, western managing director for Turkey at CB Richard countries” Ellis. “Turkey does not Feroze Bundhan, have as much debt as west- CB Richard Ellis ern countries and the banking sector does not have the same level of exposure. We are seeing the evolution of the shopping mall, with the food courts currently the main attraction. The shopping centre is the ideal place of refuge from the heat.”

New retail space coming on stream in 2011 and 2012 includes converted high street spaces in Istanbul, plus new malls in Adana, Antalya, Istanbul, Izmir and Ankara. Of the latter Bundhan points to an extensive pipeline and the city will have a significant presence at MAPIC, with a party including politicians, investors, developers and retailers.

Renaissance Holding, which has already built four shopping centres in Turkey, intends to open 16 more malls in the next five years. Current projects include Istanbul,

Adana and Izmir. Indeed, the major real estate consultancies estimate an extra 2.2 million sq m of leasable retail space will be added by the end of 2013. In the first five months of 2011, GLA growth was approximately double that of the first five months of 2010.

Major Turkish retailers are increasingly active in neighbouring countries and those which are still expanding within the country include Vakko, Beymen, Mavi, LCW and Koton.

International retailers opening new units in 2011 and 2012 include Marks & Spencer, Mango, American Eagle, IKEA and Inditex.

Young at heart: Turkey’s growth potential is boosted by its youthful demographics

Turkey has 17 cities with populations of over 1 million people within a national population of 74 million. This is the highest ratio of these two factors in the world.

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i focus AMERICAS

New direction for Americas American retail is emerging from the depths of recession and the big store groups are starting to expand again. But now the story is not only about North America, reports Mark Faithfull

T

he US has been out of recession for some time officially, but national vacancies within large US malls in the second quarter of 2011 reached 11.0%, the highest in over a decade, with shuttered department stores and anchors turning shoppers off.

Vacancy levels have risen at a time when new shopping centre development has all but stalled, with work focused instead on remodelling existing malls and completing projects already under way. Mike Kercheval, president of the ICSC, predicts that 2012 will see the lowest amount of new space provision in the modern history of the US shopping centre market, beating 2009’s record low.

European retailers remain notable by their absence.

While TopShop, which is to open a second store in Chicago, H&M and Zara may be among those to have Manhattan addresses, they have yet to become significant players in the US. Since entering the market, fashion retailer Zara has opened 49 stores, H&M has 209 stores and Spanish retailer Mango, which debuted in Los Angeles, has around a dozen.

However, Yasunobu Kyogoku chief operating officer at Uniqlo USA, says the Japanese retailer will open 200 stores in the US, including two more in New York, and generate more than $10bn in sales, by 2020. “It’s a continual evolution – that’s how you keep the brand going,” Kyogoku says. “We have the financial, we have the human, and we have the product resources to make that dream happen.”

Timing is important. A number of issues that have caused the vacancy spike are expected to start washing themselves out of the system, so vacancies are likely to decline in early 2012 as healthier sales and the lack of new space translate into rising demand.

American discount chains and value fashion retailers are snapping up new locations. Forever 21, for example, could add as many as 50 stores this year, while 7-Eleven (350 stores in the US and Canada), 99 Cents (25), Bottom Dollar Food (110), Dollar General (625) and Family Dollar (300) are all scheduled to increase their portfolio significantly. In addition, Books-A-Million is to take 14 former Borders stores.

But the American story is not just about the US. Brazil’s presence at MAPIC continues to increase, with retailers beginning to target Europe for expansion and opportunities for mall development in Brazil growing. MAPIC expects to have first-time attendees from other Central and Southern American countries too, as the axis for growth in the Americas shifts south.

In the National Retail Federation’s annual listing of the top 100 ‘hot retailers’ operating in the US, just four came from Europe: Tesco, which was ranked second with its Fresh & Easy concept, Aldi, IKEA and Ahold, through its ownership of US grocery operators.

For a few dollars less: Discount retailers continue to thrive

Manhattan addresses remain vital for brand building www.mapic.com I magazine I October 2011 I 67

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tips &tools Dear Participant, Your experience at MAPIC is important to us. The entire MAPIC team is committed to ensuring your market runs as smoothly and efficiently as possible, so that you can focus on achieving your objectives.

This document is intended to assist your preparation for the event.

The following information will enable you to arrive with a full meeting schedule in place and an in-depth understanding of the market.

1 preparing for my market

Make appointments and contacts before arrival To benefit fully from MAPIC experience, we encourage you to: • Connect MAPIC Online Database, the most effective way to prepare for MAPIC! MAPIC is a tremendous opportunity for your business. Anticipating and preparing it online on www.mapic.com using the Online Database is definitely the key: • Identify and contact the people you want to meet among thousands of retail real estate professionals • Increase your visibility by completing your company and personal profiles • Showcase and identify retail real estate projects • Schedule and plan meetings ahead of time • Select the conferences and events you want to attend New participants can take the First-timer Discovery Tour in the Palais des festivals on Wednesday, October 16, (10.15 — 10.45).

The information is divided into three sections: 1 preparing for my market 2 Arriving in Cannes:

Mapic opening hours & events 3 The Exhibition Halls & Clubs 4 YOUR TRIP TO THE MARKET

NE W COLLECT YOUR BADGE This year, you will receive an e-ticket by e-mail a few days before MAPIC. Print this e-ticket and scan the barcode at a self-service delivery point in the registration area to collect your badge. A personal photo is no longer printed on the badge but is visible when scanned at the security checkpoints.

Please remember to wear your badge at all times during the market.

The Registration Hall is located on the Croisette side of the Palais des Festivals to the left of the main entrance.

Registration Hours Tuesday, November 15: 9.00 – 20.00 Wednesday, November 16: 8.30 – 19.00 Thursday, November 17: 9.00 – 19.00 Friday, November 18: 9.00 – 16.00 Market Hours* Wednesday, November 16: 9.00 – 19.00 Thursday, November 17: 9.00 – 19.00 Friday, November 18: 9.00 – 18.00 *Exhibitors can access the exhibition area 30 minutes prior to open.

2 Arriving in Cannes:

Don’t forget to make a note of • Opening Cocktail, on Tuesday, November 15, 19.30 – Marriott Cannes Hotel (please note that your badge will be requested to enter).

Mapic opening hours & events

Cocktail in partnership with

Cannes Information The Palais des Festivals is situated on the beach front along the famous Croisette. It is clearly signposted throughout Cannes.

The exact address is: Palais des Festivals Esplanade Georges Pompidou, 06400 Cannes.

Country Dialing code: 33.

Time zone: GMT + 1.

Electricity: 220 volts AC, 50 Hz, round two-pin plugs are standard.

Measure System: Metric.

Currency: Euro

• Mapic Awards Ceremony, on Thursday, November 17, 18.30 — Palais des Festivals — Auditorium Esterel, level 5

Exhibition halls are located in each building: • Principal building (Level 01, 0) — direct access from the Croisette • Riviera Hall — direct access from the beach front The two buildings are connected via escalator.

CLUBS Business Lounge (Level 01) This club is intended for participants without a stand. Features include: Wi-Fi, e-mail point, 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 lounges, we kindly request our participants to keep their meetings to a maximum length of an hour.

REGUS Member Business Lounge (Level 01) The Regus Member Business Lounge offers complimentary and personalised business services: • Private lounge area • International press • PC/internet access • Refreshments • Specialised staff Members only Press Club (Level 01) For journalists: includes computers, Wi-Fi, internet connection, a printer and the assistance of a permanent member of staff Chairman’s Club (Riviera)

Supported by

In partnership with

• Mapic Awards Night Party, on Thursday, November 17, 22.30 — Place to be confirmed

This club is reserved for chairmen who wish to relax or discuss business in more private surroundings: @ points, refreshments and discrete attentive staff. Entry is restricted.

3 The Exhibition Halls & Clubs

The Palais des Festivals is composed of two buildings with access either from the Croisette or from the beach front. www.mapic.com I magazine I October 2011 I 69

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itips&tools TECHNICAL SERVICES • Business Centre: provides a complete range of secretarial and administrative services for all participants.

• Concierge Service: provides a complete range of services including restaurant and taxi bookings, flight, spa reservation etc.

• Customer Service Help Desk: available all year long to provide customised assistance.

Tel: +33 (0)1 41 90 44 41/42 Email: customerhelpdesk@reedmidem.com • Left luggage: available if you wish to go directly to MAPIC from the airport.

• Member desk: provides services to Customer Recognition Programme members during the show.

• Technical department: solve queries at your stand including electricity supply, stand telephones lines, contractual furniture and more.

Tel: +33 (0)1 41 90 45 49.

4 YOUR TRIP TO THE MARKET

Book the right accommodation that fits your needs with our MAPIC hotel reservations service.

Email: hotel.mapic@reedmidem.com Plan your flight to Nice Your best-bet travel agencies: • Silver Voyages (France and Southern Europe) Tel: +33 (0)1 45 61 90 59 Email: silvervoyages@wanadoo.fr • Dovetail Foks (UK and Northern Europe) Tel: +44 (0)20 7025 1515 Email: exhibition@dovetailfoks.com Fly for less with a special MAPIC offer from Air France KLM at www.airfranceklm-globalmeetings.com (ID code: 13185AF) Getting from Nice Cote d’Azur Airport to Cannes • Bus 210 (Xpress Cannes), departs every 30 minutes. Duration: 50 minutes.

Tickets desks are located in Terminal 1 and 2.

70 I

One way ticket/return tickets: €15.60/€25.50.

• Taxi: available at Terminal 1 and 2 Duration: 30 minutes approx. Average fare: €80.

Night rates apply between 19.00- 7.00.

To book a taxi, call Allo Taxi (24/7 hotline) at +33 (0)8 90 71 22 27.

• Train: One way ticket: €4.50 and €8.

Call 3635 (France) or +33 (0)8 92 35 35 35 (international) for more information.

• Car rental: Sixt offers special MAPIC rates using promotion code: 9963828.

Visit www.sixt.com or call +33 (0)8 20 00 74 98.

In Cannes • The free MAPIC shuttle bus service runs between hotels located outside Cannes and the Palais des Festivals for the entire event.

Schedules are available in hotels as well as the accommodation desk in the Palais des Festivals.

• Cannes local buses: One-way ticket: €1 • Car parks: It is strongly advised to book well in advance of your arrival.

Contact Equiptech: equiptech@cote-azur.cci.fr Uniparc Cannes SNC: mgaufillet@interparking.com

magazine I October 2011 I www.mapic.com

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MAPIC new online database: Get connected. Stay connected.

Prepare your show schedule Set up meetings with key delegates before MAPIC Promote your company Continue networking even after MAPIC

MAPIC online projects directory Showcase and identify retail real estate projects for FREE at www.mapic.com and www.retailp.com More than 400 MAPIC exhibitors' projects online!

EXPERIENCE the new online database onsite: Demonstrations during MAPIC - Meet us at the Business Lounge!

www.mapic.com

MAPIC Preview Magazine

OCTOBER 2011

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mapic

www.mapic.com The official MAPIC magazine

®

preVieW CHANGING CHANNELS

NEW HORIZONS

Also inside:

Retail’s multiple personality disorder

A global vision for stores

• City regeneration • Ireland’s leasing quandary • Expanding retailers • New projects • Italy: Country Of Honour • Focus on Western Europe • Focus on Emerging Europe • MAPIC promises MORE

Can retail property owners and developers benefit from the multichannel revolution?

India, China, Russia and the Americas target Europe for growth, as investors and retailers head for MAPIC SEE PAGE 46

SEE PAGE 38

BUILDING BUILD DING ON N SU SUCCESS! CCESS! C

LE MILLÉNAIRE LE MILLÉNAIRE AUBERVILLIERS AUBE RVILLIERS - FRANCE

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October 2011

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