Parkson PPCC - CBRE Presentation 201411

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

November 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 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


Parkson Phnom Penh City Center 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


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 PLAN Parkson 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 PLAN Parkson Phnom Penh City Center

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


FIRST FLOOR (GROUND FLOOR) – STREET LEVEL Parkson Phnom Penh City Center

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 Parkson Phnom Penh City Center

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 Parkson Phnom Penh City Center

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 Parkson 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&B

No. of Units

In-Line Stores 22

F&B 12

Kiosks 1

Total 35


FIFTH FLOOR Parkson Phnom Penh City Center

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 (TO BE CONFIRMED) 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 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

PHNOM PENH – RETAIL MARKET OVERVIEW 2014 Q3


PHNOM PENH – RETAIL MARKET OVERVIEW 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.





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





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

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 FULOP Senior Retail Consultant

Parkson PPCC - CBRE Presentation 201411

Retail

Transcript of Parkson PPCC - CBRE Presentation 201411