Parkson PPPC - CBRE Presentation 201410

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

2 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
70,000m2
Area
Parkson Gross
Floor Area
36,135m2
Parkson
Department
Store
11,000m2 (Est.)
Parkson
Shopping Mall
26,165m2 (NLA 17,700m2) “ The new shopping, lifestyle, and family entertainment
destination in Phnom Penh. Discover exciting new
international retail concepts, branded stores and restaurants. PAR”KSON

LOCATION AND DEMOGRAPHICS
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
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

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

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

STACKING PLAN

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

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

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

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

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

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

TIMELINE (UNCONFIRMED)
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

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

Company Profile

PHNOM PENH – RETAIL MARKET OVERVIEW
2014 Q3

2014
Economic Indicators bode well for future retail as new supply is met by demand
300,000
250,000
200,000
150,000
100,000
50,000
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.
-
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.

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
.
2014 Q3 Phnom Penh, Cambodia | MarketView

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.
.
2014 Q3 Phnom Penh, Cambodia | MarketView

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

Parkson PPPC - CBRE Presentation 201410

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