Parkson PPCC - CBRE Presentation 201411

PARKSON PHNOM PENH CITY CENTER
CBRE RETAIL SERVICES (EXCLUSIVE MARKETING / LEASING AGENT) PRESENTATION
November 2014

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CBRE CAMBODIA | PARKSON PHNOM PENH CITY CENTER | RETAIL PRESENTATION
PROJECT OVERVIEW
Parkson Phnom Penh City Center
Key Information
Site Developer: Hassan (Cambodia) Development Co., Ltd.
Location: Russian Federation Boulevard, Srah Chak Commune, Daun Penh District, Phnom Penh City
Retail Categories: Supermarket - DFI Lucky
Shopping Mall / Department Store - Parkson
Electronic Mall - Akira
Cineplex (10 Screens) - Golden Screen Cinema
Bowling
Project Fact Sheet
Land Area
21,962m2
Gross Floor Area
70,000m2
Parkson Gross Floor Area
36,135m2
Parkson Department Store
11,000m2 (Est.)
Parkson Shopping Mall
25,135m2 (NLA 17,700m2)
“
The new shopping, lifestyle, and family entertainment destination in Phnom Penh. Discover exciting new international retail concepts, branded stores and restaurants.
”
PARKSON

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Parkson is strategically located in the heart of Phnom Penh
The site is on Russian Boulevard, the main access road to Central Business District
Close vicinity to the emerging financial district of Phnom Penh
Along the main route to/from Pochentong International Airport
Situated at the exit point to Sihanoukville , the 4th largest city Cambodia and major tourist destination
Convenient access from major boulevards such as Kampuchea Krom, Mao Tse Toung / Monireth, Jawaharlar Nehru and Monivong
Less than 5 minutes drive from historical center, Wat Phnom and the Riverside
LOCATION AND DEMOGRAPHICS
The shopping center is right on the boundary primary catchment zones are highly affluent Tuol Kork and Phnom Penh CBD
Tuol Kork is a rapidly changing district, home to Phnom Penh’s new wealthy elite where 70-80% of the new residents are representing upper class. Residential construction approvals increase average 50% YoY. There is an influx of expatriate residents from BKK areas to this district.
The primary catchment zone includes the working and resident population of Daun Penh, BKK1-2-3, 7 Makara, Wat Phnom and Riverfront
District
Population (est.)
Primary Catchment
Toul Kork
180,000
Daun Penh
135,000
7 Makara
100,000
Chamkamorn
190,000
Total
605,000
Secondary Catchment
Dangkao
280,000
Other
1,200,000
Grand Total
2,085,000

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EXTERNAL VIEW OF THE MALL AND SITE AREA
Project Components:
Phase 1: 9-Storey Shopping Mall
Phase 2: Hotel

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SITE PLAN
Parking
Open Carpark (Ground Floor)
213
Basement 1
49
Basement 2
291
L6-L9
583
Total
1,136
Loading Bays
Ground Floor
7
Escalators
L1-L9
2 sets

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STACKING PLAN

PARKSON PHNOM PENH CITY CENTER - MALL LAYOUT AND TENANT MIX
Retail Categories

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FIRST FLOOR (GROUND FLOOR) – STREET LEVEL
Categories
International Premium / Luxury Brands
Fashion / Fashion Accessories
Leathergoods
Fine / Designer Jewellery
Timepieces
Premium Cosmetics
F&B
No. of Units
In-Line Stores
14
F&B
2
Kiosks
4
Total
20

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SECOND FLOOR
Categories
Women’s Fashion
Women’s Fast Fashion
Fashion Accessories
Fashion Jewellery
Ladies’ Footwear
Cosmetics
F&B
No. of Units
In-Line Stores
17
F&B
2
Kiosks
4
Total
23

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THIRD FLOOR
Categories
Mixed Fashion
Women’s Fashion (cont.)
Men’s / Unisex Fashion
Footwear / Eyewear
Active / Streetwear
Sportswear
F&B
No. of Units
In-Line Stores
24
F&B
3
Kiosks
1
Total
28

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FOURTH FLOOR
Categories
Lifestyle
Lifestyle Electronics
Home Décor / Interior/ / Bedding Kitchenware
Book Store / Travel / Leisure / Gifts / Stationery
Kids & Toys
Beauty Salon / Hairdresser
F&B
No. of Units
In-Line Stores
22
F&B
12
Kiosks
1
Total
35

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FIFTH FLOOR
Categories
Food & Entertainment
Foodcourt
Restaurants / Fast Food
Bakery, Ice Cream, Confectionery and Candy Shop
Fitness / Gym
Telecom / Photo and Services
Playground
No. of Units
In-Line Stores
11
F&B
18
Kiosks
1
Total
30

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TIMELINE (TO BE CONFIRMED)
Source: Arial 9pt, Dark Grey
14-Oct
14-Nov
14-Dec
15-Jan
15-Feb
15-Mar
15-Apr
15-May
15-Jun
15-Jul
15-Aug
15-Sep
15-Oct
15-Nov
15-Dec
Project Launch
Roadshow
Tenant Registration
MOUs
Commercial Terms
OTL / Booking Deposit
Lease Agreements / Full Security Deposit
Parkson entry
Design Submission / Assessment
Handover
Grand Opening
Registration
Leasing
Fitting Out (Tentative)

PARKSON – A MEMBER OF LION GROUP
Company Profile

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PARKSON - A MEMBER OF LION GROUP
Company Profile
Imtroduction
Parkson is a member of the international conglomerate, Lion Group. Established in 1930 and today it has international operations all over the world. The group has an annual turnover of approximately US$6 billion with over 23,000 staff all over the world operating in diversified businesses.
Till date, Parkson has built an unrivalled reputation as Asia’s leading department store through continuous innovation and customer-first ethos with the network of 141 stores across 66 cities in 5 countries, and serves over 120 million customers annually.
A market leader in the region, Parkson brings a wealth of experience into its partnerships with tenants. They include the following:
Knowledge and insight on customer’s and tenant’s needs
Support from our experienced management team in managing merchandise, staff and shoppers
Depth of the experience in effective sales promotions
Non stop excitement
Comprehensive loyalty program with a solid record of building brand loyalty

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Company Profile

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Company Profile

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Company Profile

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Company Profile

PHNOM PENH – RETAIL MARKET OVERVIEW
2014 Q3

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2014
Economic Indicators bode well for future retail as new supply is met by demand
GDP PER CAPITA GROWTH
6.6%
INFLATION
2.5%
RETAIL VACANCY RATE
22%
CPI
4.9 Y-o-Y
Quick Stats
Phnom Penh’s Future Retail Supply (2014-2016)
Highlights
•Aeon Mall opened 66,000 Sq.m of retail space with 100% occupancy rate in Q2, 2014.
•Average rents set to increase due to higher quality of new retail developments
•Supply set to increase by 142% by the end of 2015 with the launch of Aeon and Parkson.
•A number of International brands will enter Cambodia market for 1st time in 2014.
-
50,000
100,000
150,000
200,000
250,000
300,000
2015 (F)
2016 (F)
Introduction
June of this year saw the opening of Aeon Mall adding 66,000 Sq.m of space to Phnom Penh’s retails sector with foreign brands and franchises dominating in each category. Opening with a reported zero vacancy rate has been a great success story for Aeon when compared to the market average rate of approximately 22%. This relatively high market rate can be attributed to factors such as new market entrants, expansion of existing operators and a lack of quality leasehold management at existing centers constraining returns for owners and occupiers.
Parkson is set to open a retail center in Q4 2015 adding retail space of 36,000 Sq.m mall anchored by department store as part of the 70,000 Sq.m Phnom Penh City Centre development also incorporating a supermarket, multiscreen cinema and IT/Electronics mall. This will continue the transition of Phnom Penh’s retail sector from existing traditional markets towards International quality, purpose built retail centers that in turn will draw more International brands to this developing market.
Supply
2014 has seen some of the city’s biggest developments come to fruition with T K Avenue, Vattanac Capital and Aeon mall all completing in the first half of the year adding a combined 80,000 Sq.m of prime retail space to Phnom Penh’s retail sector. 2015 will see Parkson mall and department store open adding a further 70,000 Sq.m. This will see total retail supply more than double from 105,000 Sq.m in 2012 to more than 250,000 Sq.m by 2016. Q2 2014 also saw the soft launch of Vattanac Capital’s retail offering including international brands such as Hugo Boss,, Longchamp, TWG and Rimowa.

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2014
6.6%
INFLATION
2.5%
RETAIL VACANCY RATE
22%
CPI
4.9 Y-o-Y
Demand
Speaking at the opening launch of Aeon mall, Managing Director, Shinobu Washizawa said the mall target customer group was aged 20 – 30 years old; a sign of Cambodia’s young demographic and fledgling middle class with increasing disposable income. Economic indicators are encouraging with GDP growth at 7.2%; one of the fastest rates in the world. With purpose built, International quality retail space now available many foreign brands have opened outlets in Cambodia for the first time. Aeon has seen a much lower vacancy rate than the market average with demand coming from local and international players.
Rent
Average rent* across the retail shopping centers stands at $27.30 per Sq.m ranging from $20 to $32 per Sq.m, the arrival of International operators such as Aeon and Parkson has seen the introduction of modern rental practices such as turnover rents.*(Average market rents calculated on Ground floor & 1st floor basis)
Brands
A range of new brands have entered the market for the 1st time including:
F&B: Breadtalk, Kenny Rodgers Roasters, Beard Papa’s, S&P, Pepper Lunch and Lotteria.
Fashion: Giordano, Clarks, H.E. by Mango, Penshoppe, Lowrys Farm, Bonia, Carlo Rino, Flaxus Tokyo and Wacoal.
Other: Toni & Guy, L’Occitane, Rimowa, Daiso Major Cineplex and Future World (Apple).
A number of key car bands are set to establish stand-alone units in Phnom Penh, with BMW arriving last year and Audi and Land Rover set to open units over the course of 2014. The Lucky Department Store closed on Monrieth, Levi’s relocated to City Mall on the other side of the street, Campore Group opened multibrand Central Mall (Check Date Q3) at Central Market
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2014 Q3 Phnom Penh, Cambodia | MarketView

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2014
6.6%
INFLATION
2.5%
RETAIL VACANCY RATE
22%
CPI
4.9 Y-o-Y
Future Supply
Phnom Penh will see major increases in supply of retail space over the next two years with gross floor area for purpose built multi- tenanted retail set to increase by more than150% by the end of 2014 with an additional supply in the pipeline through to 2017 with developments Olympia by OCIC and The Bridge by Oxley under construction with a 2nd Aeon mall now in early stages of discussion. Parkson confirmed 2 additional projects (Aeropon and TBA). With established retail developers Aeon, Parkson and Hongkong Land responsible for this new supply the quality of space and management is set to increase prompting an uplift in average rents; competition from these established shopping center operators is likely to weigh further on performance of older centers already witnessing lower occupancy and customer footfall in their centers.
Overview
Cambodia has a young population with over 30% under the age of 15 and a further 21% aged 15-24. GDP per capita growth was last recorded at 6.6% and although largely a rural population there is an urbanization rate of 3.25% per annum. This is a demographic picture that bodes well for future retail demand with a youthful workforce, and growing urban population. Incomes are rising fast; albeit from a low base but discretionary income is becoming achievable for many families for the first time. A recent report calculated the Cambodia GNI at $950 per capita; fast approaching the World Bank definition of a middle income- economy at $1,045.
Retail supply is set to grow in coming years but CBRE feel this will be met by demand due to improved quality of retail space, international management and the sectors growth potential. 2014 has seen a number of International brands enter Cambodia for the first time and this is a trend set to continue as the country enjoys improved political stability and, increased local demand.
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2014 Q3 Phnom Penh, Cambodia | MarketView

M 84 972 058 444 (Vietnam)
M 855 95 666 946 (Cambodia)
Email laszlo fulop@cbre.com
www.facebook.com/CBRECambodiaRetailServices
For more information regarding this presentation please contact:
LASZLO FULOP
Senior Retail Consultant

Parkson PPCC - CBRE Presentation 201411

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