Batavia Stad - Rackcdn.com
Transcription
Batavia Stad - Rackcdn.com
A presentation at 02.06.15 Kempen & Co’s 13th European Property Seminar Hammerson & Value Retail Premium Outlet Retail Today’s visit Kempen & Co’s 13th European Property Seminar 2 June 2015 Agenda Presenting today 11.15 Presentation and Q+A 12.00 Tour of Batavia Stad 12.45 Buffet lunch 13.15 Depart Duncan Agar COO, Value Retail Timon Drakesmith CFO and Managing Director Premium Outlets, Hammerson Octavia Overholser Business Director, Value Retail 2 01 Value Retail: Europe’s leading luxury outlet operator Duncan Agar COO, Value Retail Premium Outlet Retail 3 Why do outlets exist? Brands have surplus stock and need an efficient means to deal with it that does not compromise their integrity or image 4 How does Value Retail service this need? The Value Retail Villages provide a high quality sales environment for goods that are: • Authentic surplus stock • At least one year old • Sold at a 33% - 70% discount to full price • Same season 5 Value Retail is Europe’s leading luxury outlet operator Value Retail was one of the first operators in the European market. Its first centre, Bicester Village, near Oxford, England, opened in 1995 Portfolio 9 Villages €3.75 bn value Locations Proximity to Europe’s wealthiest cities Close to major tourist attractions Total Catchment 163m residents within 120 minutes drive 100m tourists p.a. to cities served by Villages The Collection 172,000m2 of gross lettable area Over 1,000 boutiques Source: Value Retail 6 Evolution of luxury outlets Luxury outlet villages follow a pattern of evolution before reaching full maturity and achieving their highest potential sales densities Village remerchandised to bring in luxury brands. Price points and selection increase. Village remerchandised to bring in fashion brands. Brand selection increases. Units are split and average unit size decreases. Village leased up with International and local brands. Village sales density Turnover / Royalty percentage Village becomes established with international tourists and local opinion formers. Village becomes established in local markets. Attractively designed Village opens in superior location. Time 7 Shopping Tourism Growth in sales at luxury outlets is driven primarily by overseas shoppers 8 What do we mean by ‘Shopping Tourism’ ? The ‘Travelling Luxury Consumer’ (Angela Ahrendts) Customers at Value Retail’s European Villages include a large number of tourists • Europeans on holiday • Non-EU long-haul tourists from China, the Gulf, Russia, Latin America, India • Three out of four Chinese tourists to the UK visit Bicester Village • Chinese tourists at Bicester Village spend an average of £1,000 - £1,500 each (roughly 10 times the average for all visitors) Ingredients for success in attracting tourists • Location – close to major cities and complementary tourist attractions • The right line-up of brands • Marketing – websites, airlines, MICE, social media, tour organisers • Services – foreign language signage, hands-free shopping, multilingual shop assistants, prayer rooms, VIP rooms, VAT cash refund booths 9 International tourism spend trends Trends in the London tourist market show Chinese visitors are a key source of growth and spending by Middle Eastern tourists has been resilient Chinese spend has grown rapidly International split of duty free sales, London Global spending patterns in London vary - Middle Eastern spend resilient despite oil price, Russia recently impacted by currency 2009 Average spend (2014) China Middle East Nigeria Total spend, YoY growth (2014) Qatar £1,479 +16% UAE £1,145 -7% Saudi Arabia £886 +8% China £739 +6% Russian Fed £668 -28% Middle East Kuwait £588 +7% Nigeria Nigeria £586 -8% USA £575 -8% Russian Fed Other 2014 China Russian Fed Other Source: Global Blue research on London tourist market 10 Performance of Value Retail Value Retail has delivered consistent double-digit sales/NOI growth over nearly a decade Highest sales densities (Bicester) £3,000/sq ft Value Retail total brand sales growth +11% (2014) Value Retail brand sales CAGR since 2006 +17% 2014 gross rental income +12% 2014 EBITDA +13% 2014 net assets +25% Extensions to Villages will drive further growth Source: Value Retail 11 02 Hammerson: The only European listed REIT with exposure to Premium Outlets Timon Drakesmith CFO and Managing Director Premium Outlets, Hammerson Premium Outlet Retail 12 Overview of European outlet market The European outlet market has differentiating characteristics from other ‘traditional’ retail real estate markets Total size c.150 outlets Key players Value Retail; McArthur Glen; Neinver Valuation yields (1) Sales/NOI growth 6 - 8% (2) 7 - 9% Lease structure High portion (50% - 80%) turnover linked Ownership/management model Operationally intensive High tenant rotation Not many operators with equity ownership (1) (2) Source: CBRE Source: C&W 13 Overview of European outlet market The largest three players manage c.45% of the market and UK, Italy, France and Spain have the highest number of outlets Market ownership is fragmented below the top players UK has a large number of small outlets Total sales area (m2) Location of outlets (no. of outlets) (1) (2) 40 35 30 25 20 15 10 5 McArthur Glen (20) Value Retail/VIA (15) Neinver (15) Realm (10) Concepts & Distribution (8) Other (c.100) (1) (2) 0 Source: ecostra; number in brackets indicates number of outlets Source: ecostra (2013); see appendix for further information on the European country markets 14 Categorisation of European outlet market The market can be broadly categorised by the customers it serves Value Retail Luxury Fashion Mainstream fashion €3,000 VIA Outlets High-street discounters <€3,000 Increasing sales densities €/sq m €30,000+ 15 Hammerson’s exposure to Premium Outlets In order to grow our exposure to the outlets market we joined the VIA Partnership last year to acquire and improve existing European outlets Value Retail : GAV £885 million VIA Outlets : GAV £143 million Invested since 1998 New in 2014 Hammerson exposure(1) : 38% Hammerson exposure : 47% Leading operator of luxury Villages across Europe Partnership between Hammerson, APG, Value Retail and Meyer Bergman 9 Villages 6 outlet centres 172,000m2 164,000m2 Growth through extensions to existing Villages (1) Investment in associate, excluding goodwill Acquisition/turnaround strategy 16 Over £1bn now invested in Premium Outlets (13% Hammerson portfolio) Rental growth from Premium Outlets is over 3x the rest of Hammerson’s portfolio, significantly accelerating our rental income versus the rest of the European retail market Hammerson portfolio by GAV Hammerson LfL NRI growth (2014) 7% 2% Premium Outlets UK Shopping Centres France Retail UK Retail Parks Premium Outlets Source: Hammerson Rest of retail portfolio 17 VIA Outlets business strategy Acquisition/roll-up of existing European outlets centre with growth potential Acquisition focus Asset management opportunities Strong tourist appeal/destinations Upgrade tenant mix Major city catchments Rightsizing of units; more flagship spaces Consumer appreciation of outlet shopping Extend centres where appropriate Expand portfolio to around 15 centres Drive tourist traffic via global marketing and strategic travel partnerships Target €1bn GAV (HMSO incremental c.£200m) Enhance 5* hospitality services and amenities Retailer engagement before acquisition Re-engage with local catchment Meyer Bergman evaluating pipeline Utilise VR digital platform 18 VIA Outlets acquisitions to date The partnership has acquired six outlets around Europe 1 2 3 4 Batavia Stad Amsterdam 25,500m2 • 107 units Asset management: Upgrade tenant mix Extension 4 1 Landquart 5 Zurich 21,000m2 • 90 units Asset management: Re-engage local catchment Increase luxury offer for international tourists Alcochete Lisbon 55,700m2 • 170 units Asset management: Introduce higher quality fashion retailers 6 Gothenburg 16,000m2 • 56 units Asset management: Higher quality fashion retailers 5 Fashion Arena Prague 25,000m2 •100 units Asset management: Upgrade tenant mix 2 3 Kungsbacka 6 Excalibur Chvalovice 21,000m2 • 80 units Asset management: Reconfigure larger units to introduce more brands 19 VIA Outlets performance KPIs as at March 2015 Year to date as at March 2015 Brand sales (YoY %) Sales densities (YoY %) Occupancy (%) Alcochete 14% 16% 81% Batavia Stad 7% 14% 92% Excalibur 17% 20% 93% Fashion Arena 10% 9% 96% Kungsbacka 20% 21% 97% Landquart 8% 5% 79% TOTAL 11% 12% avg. 90% Source: VIA Outlets 20 VIA Outlets partnership Contribution of the VIA Outlets partners Experience and focus area Hammerson APG Value Retail Meyer Bergman Pan-European retail portfolio strategy Long history of investing in outlets World-leading outlet operator Depth of acquisition experience Investment management Insight into panEuropean retail property Luxury retail relationships Retail property focused Remerchandising and tenant rotation Acquisition / disposal execution Organisational framework and governance Pipeline evaluation Tourism marketing 21 03 Case study: Batavia Stad Octavia Overholser Business Director, Value Retail Premium Outlet Retail 22 Batavia Stad Strategic location 45 mins Schiphol airport (2014: 55m passengers) 60 mins Amsterdam and Utrecht by motorway 40 mins direct train from Amsterdam Shuttle bus every 20 mins from train station Markermeer public jetties walking distance Catchment area: 60 mins: 4.8m residents 90 mins: 11.5m residents 23 Batavia Stad Plan of Batavia Stad village Total GLA 25,500m2 107 units Key dates: • Opened 2001 • 2007 extend 5,500m2 • 2009 extend 5,500m2 • 2014 VIA acquisition Extension scheduled to open Q3 2016 • 5,500m2 • 45 new units 24 Batavia Stad Over 200 of the latest brands Adidas • Asics • Calvin Klein• Cavallaro • Converse • Denham • Desigual • Gaastra • Gant • G-Star footwear • Guess • Helly Hansen • Hugo Boss • Lacoste • Le Creuset • Levi’s • Lindt • Marc O’Polo • McGregor • Michael Kors • Napapijri • Nike • O’Neil • Pepe Jeans • PME Legend • Protest • Puma • Polo Ralph Lauren • Suit Supply • Superdry • The Society Shop • Tommy Hilfiger • Van Bommel • Van Gils • Van Lier • Villeroy & Boch • Vingino 25 Batavia Stad 2014 highlights Brand sales growth +12% New highway signage Sales density +13% Façade changes to improve circulation Footfall 2.3m (+4%) Occupancy 97% Three major hires • Tourism manager • Retail manager • Retail development manager Tax free sales growth +30% Top three markets(1): China (+22%); Russia (+11%); Israel (+10%) VIP programme launched China Union Pay Card: 85% store acceptance (1) Source: Global Blue research 26 Batavia Stad Leasing highlights in 2014 and 2015 New brands in 2014 Upcoming remerchandising (38 projects for 2015) New Brands Upsize: Downsize: 27 Batavia Stad Key initiatives 2015 Major façade changes and start phase 4 and 5 extensions Landscaping and welcome roundabout signage New logo, new website, interactive screens in mall Shopping Express bus trial during July and August New Information Centre Electronic gift card and new marketing partnerships 28 Batavia Stad Façade changes Before Before After After 29 Batavia Stad Plan of expansion II I III IV V 30 Batavia Stad Renderings of expansion 31 Conclusion and Q+A Outlet market offers exceptional rental growth, 3x average Hammerson retail Operating Premium Outlets successfully requires experience, skill and relationships Hammerson, Value Retail and the other VIA partners are combining skills and working closely together to build market share Hammerson is the only European-listed REIT to give investors exposure to this opportunity Our focus on being a pan-European retail specialist is enhanced by our Premium Outlets portfolio 32 04 Appendix 33 Value Retail European Villages Kildare Village, Dublin Year opened GLA Boutiques Catchment 2006 10,900m2 65 4m Bicester Village, London Year opened GLA Boutiques Catchment 1995 22,700m2 136 30m Maasmechelen Village, Brussels Year opened 2001 GLA 19,400m2 Boutiques 109 Catchment 41m La Vallee Village, Paris Wertheim Village, Frankfurt Year opened GLA Boutiques Catchment Year opened GLA Boutiques Catchment 2000 21,000m2 120 18m 2003 20,900m2 120 21m La Roca Village, Barcelona Ingolstadt Village, Munich Year opened GLA Boutiques Catchment Year opened GLA Boutiques Catchment 1998 23,130m2 146 6m 2006 20,500m2 119 14m Las Rozas Village, Madrid Fidenza Village, Milan Year opened GLA Boutiques Catchment Year opened GLA Boutiques Catchment 2000 16,500m2 146 6m 2003 17,400m2 103 21m 34 Hammerson’s investment in Value Retail Holding companies 22% equity Hammerson €58m shareholder loan 50% Bicester Village La Roca Village Las Rozas Village La Vallée Village Maasmechelen Village Fidenza Village Wertheim Village Ingolstadt Village Kildare Village 33 23 19 11 13 20 31 0 3 45 35 31 22 24 32 43 11 14 Key to Hammerson ownership: Village ownership via LPs (%) Total Village ownership (%) 35 European outlet market location data No of sites Retail sales area m2 Retail sales per 1,000 inhabitants (m2) 2013 2003 UK 35 36 515,000 8.4 Italy 23 4 492,000 8.2 France 17 12 256,000 4.1 Spain 16 9 207,000 4.4 Germany 9 3 127,000 1.5 Poland 9 1 134,000 3.5 Switzerland 6 4 88,000 11.4 Russia 3 - 70,000 0.7 Greece 3 - 46,000 4.0 Ireland 3 - 23,000 5.4 Netherlands 3 2 69,000 4.2 Portugal 3 1 82,000 7.8 Austria 3 1 75,000 8.9 Sweden 3 3 37,000 4.0 Czech Republic 2 - 39,000 3.7 Source: ecostra (data for the largest 15 markets in European area) 36