parkson ppcc - cbre presentation 201410

PARKSON PHNOM PENH CITY CENTERCBRE RETAIL SERVICES (EXCLUSIVE MARKETING / LEASING AGENT) PRESENTATIONOctober 2014

2 CBRE CAMBODIA | PARKSON PHNOM PENH CITY CENTER | RETAIL PRESENTATION

PROJECT OVERVIEWParkson 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

ParksonDepartment Store

11,000m2 (Est.)

ParksonShopping 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.

”PARKSON


Parkson Phnom Penh City CenterParkson 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 TseToung / 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 onthe boundary primary catchmentzones are highly affluent TuolKork 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, WatPhnom 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

Parkson Phnom Penh City Center


SITE PLANParkson Phnom Penh City Center

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 PLANParkson Phnom Penh City Center

PARKSON PHNOM PENH CITY CENTER -MALL LAYOUT AND TENANT MIXRetail Categories


FIRST FLOOR (GROUND FLOOR) – STREET LEVELParkson Phnom Penh City Center

Categories

International Premium / Luxury Brands

Fashion / Fashion Accessories

Leathergoods

Fine / Designer Jewellery

Timepieces

Premium Cosmetics

F&BNo. of Units

In-Line Stores 14

F&B 2

Kiosks 4

Total 20


SECOND FLOORParkson Phnom Penh City Center

Categories

Women’s Fashion

Women’s Fast Fashion

Fashion Accessories

Fashion Jewellery

Ladies’ Footwear

Cosmetics

F&BNo. of Units

In-Line Stores 17

F&B 2

Kiosks 4

Total 23


THIRD FLOORParkson Phnom Penh City Center

Categories

Mixed Fashion

Women’s Fashion (cont.)

Men’s / Unisex Fashion

Footwear / Eyewear

Active / Streetwear

Sportswear

F&BNo. of Units

In-Line Stores 24

F&B 3

Kiosks 1

Total 28


FOURTH FLOORParkson Phnom Penh City Center

Categories

Lifestyle

Lifestyle Electronics

Home Décor / Interior/ / Bedding Kitchenware

Book Store / Travel / Leisure / Gifts / Stationery

Kids & Toys

Beauty Salon / Hairdresser

F&BNo. of Units

In-Line Stores 22

F&B 12

Kiosks 1

Total 35


FIFTH FLOORParkson Phnom Penh City Center

Categories

Food & Entertainment

Foodcourt

Restaurants / Fast Food

Bakery, Ice Cream, Confectionery and Candy Shop

Fitness / Gym

Telecom / Photo and Services

PlaygroundNo. of Units

In-Line Stores 11

F&B 18

Kiosks 1

Total 30


TIMELINE (UNCONFIRMED)Parkson Phnom Penh City Center

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 GROUPCompany Profile


PARKSON - A MEMBER OF LION GROUPCompany 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 billionwith 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 continuousinnovation and customer-first ethos with the network of 141 stores across 66 cities in 5 countries, and servesover 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

PHNOM PENH – RETAIL MARKET OVERVIEW2014 Q3


PHNOM PENH – RETAIL MARKET OVERVIEW2014

Economic Indicators bode well for future retail as new supply is met by demand

GDP PER CAPITA GROWTH6.6%

INFLATION2.5%

RETAIL VACANCY RATE22%

CPI4.9 Y-o-Y

Quick StatsPhnom Penh’s Future Retail Supply (2014-2016) Highlights

• Aeon Mall opened 66,000Sq.m of retail space with100% occupancy rate in Q2,2014.

• Average rents set to increasedue to higher quality of newretail developments

• Supply set to increase by142% by the end of 2015 withthe launch of Aeon andParkson.

• A number of Internationalbrands will enter Cambodiamarket for 1st time in 2014.

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50,000

100,000

150,000

200,000

250,000

300,000

2015 (F)2016 (F)

IntroductionJune of this year saw the opening of Aeon Mall adding 66,000 Sq.m of spaceto Phnom Penh’s retails sector with foreign brands and franchisesdominating in each category. Opening with a reported zero vacancy rate hasbeen a great success story for Aeon when compared to the market averagerate of approximately 22%. This relatively high market rate can be attributedto factors such as new market entrants, expansion of existing operators anda lack of quality leasehold management at existing centers constrainingreturns for owners and occupiers.Parkson is set to open a retail center in Q4 2015 adding retail space of36,000 Sq.m mall anchored by department store as part of the 70,000 Sq.mPhnom Penh City Centre development also incorporating a supermarket,multiscreen cinema and IT/Electronics mall. This will continue the transitionof Phnom Penh’s retail sector from existing traditional markets towardsInternational quality, purpose built retail centers that in turn will draw moreInternational brands to this developing market.

Supply2014 has seen some of the city’s biggest developments come to fruition withT K Avenue, Vattanac Capital and Aeon mall all completing in the first half ofthe year adding a combined 80,000 Sq.m of prime retail space to PhnomPenh’s retail sector. 2015 will see Parkson mall and department store openadding a further 70,000 Sq.m. This will see total retail supply more thandouble from 105,000 Sq.m in 2012 to more than 250,000 Sq.m by 2016. Q22014 also saw the soft launch of Vattanac Capital’s retail offering includinginternational brands such as Hugo Boss,, Longchamp, TWG and Rimowa.





INFLATION2.5%


CPI4.9 Y-o-Y

DemandSpeaking at the opening launch of Aeon mall, Managing Director,Shinobu Washizawa said the mall target customer group was aged20 – 30 years old; a sign of Cambodia’s young demographic andfledgling middle class with increasing disposable income. Economicindicators are encouraging with GDP growth at 7.2%; one of thefastest rates in the world. With purpose built, International qualityretail space now available many foreign brands have opened outletsin Cambodia for the first time. Aeon has seen a much lower vacancyrate than the market average with demand coming from local andinternational players.RentAverage rent* across the retail shopping centers stands at $27.30per Sq.m ranging from $20 to $32 per Sq.m, the arrival ofInternational operators such as Aeon and Parkson has seen theintroduction of modern rental practices such as turnoverrents.*(Average market rents calculated on Ground floor & 1st floorbasis)

BrandsA range of new brands have entered the market for the 1st timeincluding:F&B: Breadtalk, Kenny Rodgers Roasters, Beard Papa’s, S&P,Pepper Lunch and Lotteria.Fashion: Giordano, Clarks, H.E. by Mango, Penshoppe, LowrysFarm, Bonia, Carlo Rino, Flaxus Tokyo and Wacoal.Other: Toni & Guy, L’Occitane, Rimowa, Daiso Major Cineplexand Future World (Apple).A number of key car bands are set to establish stand-alone unitsin Phnom Penh, with BMW arriving last year and Audi and LandRover set to open units over the course of 2014. The LuckyDepartment Store closed on Monrieth, Levi’s relocated to CityMall on the other side of the street, Campore Group openedmultibrand Central Mall (Check Date Q3) at Central Market

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2014 Q3 Phnom Penh, Cambodia | MarketView





INFLATION2.5%


CPI4.9 Y-o-Y

Future SupplyPhnom Penh will see major increases in supply of retail space overthe next two years with gross floor area for purpose built multi-tenanted retail set to increase by more than150% by the end of2014 with an additional supply in the pipeline through to 2017 withdevelopments Olympia by OCIC and The Bridge by Oxley underconstruction with a 2nd Aeon mall now in early stages of discussion.Parkson confirmed 2 additional projects (Aeropon and TBA). Withestablished retail developers Aeon, Parkson and Hongkong Landresponsible for this new supply the quality of space andmanagement is set to increase prompting an uplift in average rents;competition from these established shopping center operators islikely to weigh further on performance of older centers alreadywitnessing lower occupancy and customer footfall in their centers.

OverviewCambodia has a young population with over 30% under the ageof 15 and a further 21% aged 15-24. GDP per capita growth waslast recorded at 6.6% and although largely a rural populationthere is an urbanization rate of 3.25% per annum. This is ademographic picture that bodes well for future retail demand witha youthful workforce, and growing urban population. Incomes arerising fast; albeit from a low base but discretionary income isbecoming achievable for many families for the first time. A recentreport calculated the Cambodia GNI at $950 per capita; fastapproaching the World Bank definition of a middle income-economy at $1,045.Retail supply is set to grow in coming years but CBRE feel thiswill be met by demand due to improved quality of retail space,international management and the sectors growth potential. 2014has seen a number of International brands enter Cambodia forthe first time and this is a trend set to continue as the countryenjoys 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 [email protected]

www.facebook.com/CBRECambodiaRetailServices

For more information regarding this presentation please contact:LASZLO FULOPSenior Retail Consultant