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European Shopping Centers 2012


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  • 1. European Shopping Centers 2012Report Details:Published:October 2012No. of Pages: 133Price: Single User License – US$3450We expect that the majority of European shopping centers to remain viable and to provide anoutlet for capital seeking a secure and profitable home. Older and/or poorly located shoppingcenters, especially those serving regions particularly badly hit by unemployment, will suffer andsome may be badly degraded by retailer flight or even have to close down.Features and benefits•Understand which areas of Europe are attracting the most shopping center investment and why.•Find out how changes to individual country populations and consumer economies have affected the viability of shopping center investment.•Examine the portfolios of the major shopping center operators, owners and investors.HighlightsIf all the shopping center projects scheduled for 2011 had been completed on time, provisionacross Europe would have increased by 15% to 6.8 million sq m. However, delays in severalmarkets – notably Italy, Russia and Turkey – resulted in the amount of new shopping center spacetotaling 5.9 million sq m, nearly identical to that of 2010.The pipeline for European shopping center development pipeline for 2012/13 is 10.9 million sq m,with 6.4 million sq m scheduled for completion in 2012. Central and Eastern Europe accounts formost (61%) of the pipeline. Russia and Turkey top the list, accounting for 32% of new shoppingspace scheduled.Investors are increasingly focusing on maximizing the value of their assets instead of investing innew developments. Many centers built in good locations now require investment to continue togenerate high revenues, and both the cost and investment risk of refurbishment andredevelopment is lower than the construction of a new center.Your key questions answered•Who are the largest investors, owners and operators of shopping centers in Europe?•What methods are shopping centers in Europe using to differentiate themselves from the competition?
  • 2. •What has been the impact of the European debt crisis on shopping centers? What would the worsening of the crisis mean for shopping centers?Get your copy of this report @ points covered in Table of Contents of this report includeTable Of ContentsOVERVIEWSummaryShopping centers remain viable despite European debt crisis, though poorly located sufferShopping center development is back in fashion …especially in CEE, Russia and TurkeyExtension/refurbishment to take place of new buildInvestment capital surges back inShopping centers seen as relatively safe investmentsThe bigger the better for consumersBigger the better creates virtuous circle for ownersWooing top retailers …… by really understanding a centers shoppersSpreading across the continentA lot of development potential in Europes fringesSustainability grows in importanceMain conclusionsShopping centers remain viable despite European debt crisis … though some older, poorly located ones will sufferShopping center development is back in fashion …especially in CEE, Russia and TurkeyExtension and refurbishment to take place of new buildInvestment capital surges back inMain target is prime centersShopping centers seen as relatively safe investmentsOwners compete for investment/development fundsThe bigger the better for consumersBigger the better creates virtuous circle for ownersOwners still aim to create spaceWooing top retailers …… by really understanding a centers shoppersNet to be cast wider for exciting new retail brandsSpreading across the continentLot of development potential in Europes fringes
  • 3. Sustainability grows in importanceEUROPEAN SHOPPING CENTER DEVELOPMENT50 years of developmentPicks up speed in new millenniumAnnual development activityShopping center floorspace per headExtension activityRecent shopping center developmentsInvestment in shopping center acquisitionRetail investment totaled nearly €40bn in 2011, a 3.5% increase on 2010In 2011 investment in shopping center assets surged to just under €22bnThere are two broad strategies in play with regard to shopping center investmentSustainability is gaining in importanceSHOPPING CENTER GROWTH STRATEGIES IN DIFFICULT TIMESPhysicalNew shopping centersExtensions and refurbishmentsRefurbishment aims to retain tenantsRedevelopment aims to reposition the center, increase its reach and improve its market positionShopping center landlords use all means to enlarge portfolios and improve qualityStanding out in a crowdEntertainmente-marketingTHE RISE OF INTERNATIONAL RETAIL BRANDSDesirable international chainsBig Box anchor tenantsInternational retailer outlookTHE CONSUMER ECONOMYPopulationTurning greyerRetail salesConsumer confidenceRetail salesConsumer economy outlookAusterity painStability for some and opportunities in the eastIMPACT OF THE EUROPEAN ECONOMIC CRISIS
  • 4. The global financial crisisImpact on consumers and knock-on effect on shopping centersShopping centers shine amid economic storm cloudsRefreshing the retail mixSeeking out the worlds top retail formatsShopping center rents bounce back and a following wind is gathering momentum for futuredevelopmentThe euro – help or hindrance?Immense pain in low productivity areas of the EurozoneThe problem with the euro is that it doesnt have a central treasury and bankSeemingly no way out of the crisisWeathering the stormEconomic outlookGlobal economy in uncharted watersArmageddon isnt impossible but its much more likely that well keep muddling alongEither way, it is hard to see the euro surviving in its current formEven in the most difficult times, shopping centers will remain good solid investmentsSHOPPING CENTER INDUSTRY PLAYERSWide variety of playersInvestment factoryComparative statisticsAFI DEVELOPMENTRussian real estate development company listed on the London Stock ExchangeRecent key eventsAFIMALL flagship opensAFI buys City of Moscow stakeFinancialsAFIMALL City drives profitsStrong growth in H1 2012, but revaluation losses mountOutlookA new rental income streamLooking for the next major retail developmentALTAREA COGEDIMREIT and development company aims to triple revenue in three yearsRecent key eventsAcquires online shopping mallOpening new shopping centersDisposes of non-core assetsBusiness strategy
  • 5. Regional shopping centersRetail/entertainmentFamily VillageMultichannel property companyFinancialsSteady financial performanceH1 2012Shopping center portfolioOutlookFewer but biggerRegional shopping center development sites are much sought afterExploiting onlineCAPITAL SHOPPING CENTRESOnly pure UK prime shopping center REITRecent key eventsBuys big in the UKUps fundingIncreasing activity overseasFinancialsTransformed by Trafford Centre2012 sees fall in LFLsShopping center portfolioOutlookCatering for consumersFocus on the existing portfolioA two center upgrading in NottinghamInvesting in strengthNo funding strainCITYCONFinlands finestRecent key eventsAcquisitions in FinlandAdds DenmarkReinvests in the estateDivesting non-core assetsNew buildsManages third party owned centersFinancialsPortfolioOutlook
  • 6. Presses the acceleratorFocus on convenienceExtends the boundariesCORIODedicated shopping center manager and developerRecent key eventsOpenings, acquisitions and extensions in 2011Expands in Turkey’s growing economyAcquires centers from MultiInvests in ItalyDisposalsFinancialsShopping center portfolioOutlookManaging through difficult timesUpping the pace of disposalsFocusing on shopping centersSurviving the worst economic stormOverall the strategy seems to be driven by necessity rather than choiceEUROCOMMERCIAL PROPERTIESOne of Europes most experienced owners of shopping centersRecent key eventsInvesting in the wealthy coreDivestmentsFinancialsShopping center portfolioOutlookNot a rash investorHAMMERSONFocusing on shopping centersRecent key eventsOut of officeFinancially secureRedeveloping CroydonFinancialsLFL income increases in H1 2012Shopping center portfolioOutlookFocus continues on UK and France
  • 7. Ambitious city center upgradesMarseille center looks set to be a successNeed to watch costsKLÉPIERREStrong European spreadRecent key eventsAcquisitionsPioneering digital marketing in mallsDisposing non-core assetsMaintaining the pace of new openingsEnlarging existing centersFinancialsSolid performance in H1 2012Shopping center portfolioOutlookContinues to avoid riskFavoring premium shopping centersManaging smaller centersTargeting disposals of €1bn to end 2013Remaining attractive to outside investorsMULTI CORPORATIONLargest independent retail developer in EuropeRecent key eventsSecuring adequate fundingImproving its operational efficiencyTaking control in ItalySelling projects onOpening new centersEnlarging and renovating existing centersGroup structureMulti DevelopmentMulti Mall ManagementMulti InvestmentMulti Asset ManagementTurkeyOutlookTurkish focusPotential throughout the Muslim worldA wide European spreadCollaborating with other big players
  • 8. PLAZA CENTERSCEE shopping center development specialistRecent key eventsOpened major center in PolandInto SerbiaPaying down debtFinancialsEuropean shopping center portfolioOutlookBringing modern retail facilities to eastern EuropeA strong development pipelineIncrease in number of managed centersSONAE SIERRAEuropes widest spread operatorRecent key eventsInto North AfricaNew shopping centersExtensions/renovationsStrengthening the position in BrazilSome disposalsFinancialsH1 2012Shopping center portfolioOutlookIberian portfolio weighs heavilyFinding it hard to sell assetsExploiting the buoyant Brazilian marketExpanding in GermanySelling the groups skillsTRIGRANITOne of the largest property developers in CEERecent key eventsProject completionsProject startsShopping center developmentsOutlookMixed-use urban projectsInto China
  • 9. UNIBAIL-RODAMCOEurope’s biggest listed playerRecent key eventsShopping center acquisitionsmfi acquisitionUpgrading and enlargingA €4.2bn retail development pipelineSuccess in raising new fundingFinancialsShopping center portfoliomfi portfolioOutlookProgresses in a tough environmentA major advance into GermanyMay consider UK entryAppeals to international retail chainsWESTFIELDA major non-European company looking for growthRecent key eventsOpening of Stratford CityInto ItalyClearing the decksFinancialsCenter portfolioOutlookRegional malls the way forwardEuropean opportunities limitedMay look for acqusitionsAPPENDIXDefinitionsShopping centerNorth & west EuropeCentral & southern EuropeDeveloped eastRest of EuropeFair valueGDPOccupancy cost ratioREITsRotation rate
  • 10. Square metreAsk the analystDisclaimerList Of TablesTable: Distribution of European shopping centers 2012Table: Proportion of population aged 65 or over 2000, 2005 & 2011Table: EU consumer confidence year-on-year % change June 2011 – May 2012Table: EU year-on-year % changes in real retail sales at 2005 prices Q4 2010 – Q1 2012Table: : E xamples of leasing activity 2011Table: Recent major shopping center acquisitions 2011–12Table: Shopping center players comparative statistics December 2011Table: AFI Development company information 2012Table: Altarea company information 2012Table: Altarea Cogedim financial performance for years ending December 2007–11Table: Capital Shopping Centres company information 2012Table: Capital Shopping Centres financial performance 2010 & 2011Table: Capital Shopping Centres shopping center portfolio 2012Table: Citycon company information 2012Table: Citycon financial performance 2010 & 2011Table: Citycon shopping center portfolio 2011Table: Corio company information 2012Table: Corio financial performance 2007–11Table: Corio shopping center portfolio by country 2011Table: Corio shopping center development portfolio 2012Table: Eurocommercial Properties company information 2012Table: Eurocommercial Properties financial performance 2009–12Table: Eurocommercial shopping center portfolio by country June 2012Table: Hammerson company information 2012Table: Hammerson net rental income 2010 & 2011Table: Hammerson shopping center portfolio 2012Table: Hammerson shopping center pipeline 2012Table: Klépierre company information 2012Table: Klépierre financial performance 2007–11Table: Klépierre shopping center portfolio 2011Table: Multi Corporation company information 2012Table: Plaza Centers company information 2012Table: Plaza Centers financial performance 2010 & 2011Table: Plaza Centers European shopping center portfolio 2011Table: Plaza Centers European shopping center development pipelineTable: Sonae Sierra company information 2012
  • 11. Table: Sonae Sierra total rental income by country 2010 & 2011Table: Sonae Sierra key performance indicators 2007–11Table: Sonae Sierra total GLA evolution 2006-2011Table: TriGranit company information 2012Table: TriGranit shopping center portfolio 2011Table: Unibail-Rodamco company information 2012Table: Unibail-Rodamco assets 2010 & 2011Table: Unibail-Rodamco net rental income from shopping centers by region 2010 & 2011Table: Unibail-Rodamco shopping centers floorspace by region 2011Table: Unibail-Rodamco shopping center portfolio asset valuation and yields 2011Table: mfi shopping center portfolio June 2012Table: Westfield company information 2012Table: Westfield Groups net profit on an equity share basis 2010 & 2011Table: Westfield UK retail portfolio 2012List Of FiguresFigure: Number of European shopping centers 1961–2013Figure: New shopping center floorspace 1961–2013Figure: Shopping center floorspace per head of population 2011Figure: Extensions as percent of annual development activity, Europe, 1961–2013Figure: Average shopping center size 1961–2013Figure: Strategies for growth 2012Figure: Regional mall virtuous circle – the Unibail-Rodamco example 2011Figure: European population by broad region 2011Figure: European retail sales by broad region €m 2011Figure: Indices of GDP at constant prices in northern & western Europe 2000–17eFigure: Indices of GDP at constant prices for GIPSI countries 2000–17eFigure: Indices of GDP at constant prices in eastern EU 2000–12eFigure: Indices of GDP in the rest of Europe 2000–12eFigure: AFIMALL City, Presnenskaya, Moscow 2012Figure: Altarea properties Cap 3000 St Laurent du Var & Villeneuve la Garenne 2012Figure: Capital Shopping Centres - Trafford center Manchester 2012Figure: Citycon Myyrmanni, Vantaa shopping center 2012Figure: Corio shopping malls Aarhof, Netherlands & Maremagnum, Barcelona, Spain 2012Figure: Eurocommercial Properties Passy Plaza, France & Ingelsta mall, Sweden 2012Figure: Hammerson West Quay, Southampton, UK shopping center 2012Figure: Klépierre Aqua Portimao shopping center, Algarve, Portugal 2012Figure: Multi Corporation Forum Kayseri shopping center, Turkey 2012Figure: Plaza Centers Torun Plaza, Poland 2012Figure: Sonae Sierra Centro Colombo shopping center PortugalFigure: TriGranit Arena Centar, Zagreb, Croatia 2012
  • 12. Figure: Unibail-Rodamco Täby Centrum mall, SwedenFigure: Westfield Stratford & London shopping centers 2012Contact: for more information.