If you are interested to know more about Redevco’s view on market attractiveness and the

City Analysis, please contact Redevco.

Redevco B.V.

T +31 (0)20 599 62 62 | E info@redevco.com | www.redevco.com

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CITIES ANALYSED

REdEvco’s viEw

MaRkET aTTRacTivEnEss of CItIesWheRe to InVest In RetAIl pRopeRtyThis brochure is printed on TOP10

Green Gloss paper 100% post-consumer FSC Recycled certified fibres and PCF (Process Chlorine Free).

Amsterdam, November 2013

20138586_Flyer_city_view_v5.indd 1 8-11-2013 10:29:33

In markets that are undergoing structural changes –like in the retail business, with market polarisation as a consequence -

stock selection will become an even more important determinant of future success. therefore, Redevco has undertaken

extensive research to identify the most attractive markets.

In depth research

Primereal estate

Bigger cities have better prospects…

In europe, society has already become very urban. Although in europe urbanisation as a trend is not very strong in comparison to

other continents, there is still a tendency for regions with larger populations to display higher growth than regions with smaller

populations. this means that most of the bigger cities will continue to grow while a number of peripheral areas will face population

decline. this population trend in combination with the city centric focus of our society supports the view of Redevco that bigger cities

generally have better prospects for retail than peripheral areas and smaller cities.

A note on POPULaTION

The sweet spot: cities with high retail sales and room for growth

the theory of Richard florida on the Creative Class implies that cities with a higher proportion of people with creative

professions display higher economic growth. this is because the creative class adds value to these living environments

through their creative activities, thereby increasing the attractiveness of these cities for other people and companies.

In turn, this has a positive influence on the economic climate. the consumers found in these cities generally have a

high spending power per capita in combination with growht potential (source oxford economics).

A note on ecONOMY

It’s not just about economic and demographic fundamentals…

In Redevco’s view, market attractiveness for retail property investment is not just a sum of demographic and economic

factors. Whether cities will be able to attract consumers for leisure shopping purposes will also depend on their offer. With

increasing pressure on leisure time and competition from the internet, consumers will need a good reason to go shopping.

sometimes shopping will be purpose driven, but very often it will not. In those cases consumers just want to meet interesting

retailers and products in a vibrant setting where they can also enjoy restaurants and cafes, culture and history. the cities that

will be the most successful in attracting consumers will be the cities that offer a true experience!

A note on cITY QUaLITY

The crossroad of investor and retailer demand

for Redevco, property markets where investor demand and retailer demand coincide are the most attractive markets.

however logical this may seem, in practice the two market players do not always agree. While investment activity is mostly

limited to the most mature countries in europe, retailer demand is also strong outside of those stronger countries. on

the other hand, for some cities investors are willing to pay high prices, while the demand from retailers is not very strong.

Redevco aims to invest in those locations where investor and retailer demand coincide and where there is a healthy balance

between the available stock and retailer demand.

A note on PrOPerTY MarKeT

As a pan-european investment manager specialized in retail property, it is our business to identify those markets that

contribute to the success of the retailer -and thus to ours- now and in the future. Redevco strives to be the real estate

partner of choice for retailers. We understand that physical stores must add tangible value in a multi-channel brand strategy.

With our focus on prime properties in the dominant shopping areas of europe’s most resilient retail markets, we are able to

do just that.

to formulate an objective opinion about the attractiveness of markets, Redevco created and uses the City Analysis model

focusing on high streets. this model helps to understand the fundamentals of more than 750 cities (and 1440 regions) in 18

countries across europe in great detail. the analysis is based on more than 20 variables with regard to population, economy,

City Quality and property Market.

cITY AnAlysIs

POPULATIONPOPULATION SIZE

CATCHMENT AREA

FUTUREPOPULATION

GROWTH

ECONOMYRETAIL SALES

DEVELOPMENT HOUSEHOLDDISPOSABLE INCOME

ECONOMIC STRUCTURE

EMPLOYMENT GROWTH

UNEMPLOYMENT

RETAIL SALESPER CAPITA

PROPERTY MARKET

VACANCYYIELD LEVEL

RENTAL LEVEL DEAL FLOW

SHARE INTERNATIONALRETAILERS

DEVELOPMENT PIPELINE

CITY QUALITYTOURISM

HISTORIC POINTS OF INTERESTAVERAGE AGE

CREATIVE PROFESSIONS

20138586_Flyer_city_view_v5.indd 2 8-11-2013 10:31:43