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Retail ConsultanCy in Busan, south KoRea

Valuation & aDVisoRy seRViCes I asia

We completed a retail consultancy study for a landmark shopping mall in Busan, South Korea. The client has acquired the mall and is planning to restructure it in order to improve its value. The mall comprises eight retail floors and basement car parking with a total gross lettable area of about 58,000 square metres.see more details >

CONTACTS DaViD FaulKneRExecutive DirectorValuation & Advisory Services I AsiaDirect +852 2822 0525Fax +852 2107 6017david.faulkner@colliers.com

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Amit Oberoi, National Director of Valuation and Advisory Services – India, was invited to speak at a three-day “Advanced Real Estate Valuation” program organized by the Indian School of Business in Hyderabad, a leading business school in India. Amit chaired a session on real estate valuation and also shared some case studies on township developments in India.

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Capitamalls, ChinaA valuation report was completed for a portfolio of five properties located in Beijing and Zhengzhou. The portfolio consists of CapitaMall Anzhen, CapitaMall Shuangjing, CapitaMall Wangjing in Beijing; CapitaMall Erqui in Beijing and CapitaMall Jinshui in Zhengzhou. The total gross floor area of the portfolio is over 308,000 square metres.

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Colliers International | accelerating success. | www.colliers.comSuite 5701 Central Plaza, 18 Harbour Road, Wanchai, Hong Kong | (852) 2828 9888 Main | (852) 2828 9899 Fax

“Mall located in Eastern Busan, a primetourist and shopping destination”

SUCCESS STORY CONSULTANCY AND VALUATION SERVICES FOR A RETAIL MALL IN BUSAN, KOREA

TEAM

Hong Kong Valuation and Advisory Services

STATISTICS

Site area: over 8,500 sq m

Mall GFA: over 57,700 sq m

SERVICES PROVIDED

Retail Consultancy

Valuation

www.colliers.com

CHALLENGE The subject property is a landmark shopping mall located in the eastern area of Busan City, a popular tourist and shopping destination. It comprises over 57,700 sq m of retail spaces. Originally a prime destination, its popularity waned in recent years due to the development of new areas in Busan, frequent tenant turnover, a high vacancy rate and increased competition with other shopping malls. The challenge was to devise a detailed merchandising plan based on extensive research, enquiries and analysis that will boost the profile of the mall.

STRATEGY We provided the client with a valuation of the subject property.

We also undertook an extensive market study in terms of both existing competition and future prospects and subsequently carried out a feasibility study by proposing three merchandising plans. Discounted Cash Flow (DCF) analysis was then carried out to evaluate the net present values of the property and to find the most profitable merchandise option. We also included detailed budgets and timelines for each possible scenario.

SERVICES We provided the client with an in-depth overview and background of the property (such as location, surround developments and competitor analysis, accessibility, tenant mix review, site problems, topography, site dimensions, a general description of the development, and title particulars, etc.). Each merchandising plan was detailed including a comprehensive tenant mix analysis and particular features and improvements to be made to the mall. We also provided a commentary for the Busan retail market and an overview of demographics and economics.

RESULTS The report was submitted for internal reporting.

The client was highly satisfied with our comprehensive report, recommendations and timely submission.

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