ARE SHOPPING CENTERS WINNING AGAINST ON-STREET SPACES?

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1 ARE SHOPPING CENTERS WINNING AGAINST ON-STREET SPACES? 21th of November 2012

2 RETAIL MARKET OVERVIEW Romanian modern retail stock continues the upward trend; Food and fashion retailers are driving the current retail demand; The main focus for food retailers is based on convenience stores (Mega Image 165 shops, Lidl 154 shops, Profi 142 shops, Carrefour Market 60 shops, Penny Market 130 shops, La doi Pasi 400 shops); The expansion of large international retailers demonstrates their confidence and success in the country s retail market (Inditex, H&M, Deichmann, New Yorker, Takko, C&A, Decathlon); New entries on the market: CCC, ODDGI, Clockhouse, Subway; Bucharest still dominates the local market in terms of attraction for retailers that want to expand their network, followed especially by large cities with over 200,000 inhabitants.

3 RETAIL MARKET OVERVIEW RETAIL MARKET MAJOR RETAIL OVERVIEW INDICATORS Romania Modern Retail Stock 2,723,000 sq m Bucharest - Modern Retail Stock 810,000 sq m New Retail Projects ,500 sq m Forecast Completions ,000 sq m Prime Rent Bucharest (On -Street) Prime Rent Bucharest (Shopping Centres) 60 euro/sq m/month 50 euro/sq m/month

4 NEW RETAIL DEVELOPMENTS Retail Schemes to be opened in 2012 Retail Scheme Surface Developer City Palas Mall 55,000 sq m Iulius Group Auchan City Crangasi 7,000 sq m Immochan Cora Bacau 18,500 sq m Romania Hypermarche Ploiesti Shopping City 55,000 sq m InterCora Mihai Bravu 12,000 sq m InterCora Carrefour Property & NEPI Iasi Bucharest Bacau Ploiesti Bucharest Uvertura Mall 15,000 sq m Moldova Universal Botosani Era Shopping Park (2 nd phase) 20,000 sq m Argo Capital Property Oradea Cora Rahova European Retail Park 22,000 sq m Romania Hypermarche Bucharest 26,000 sq m BelRom Deva

5 HIGH STREET OVERVIEW The current demand is driven by food operators and betting agencies and casinos, while banks continue their costcutting process and relocate or close several units; The Old City Center remains the hot spot for Bucharest café & restaurant segment and a very attractive area for fashion retailers. Prime locations are still representing expansion opportunities for fashion retailers. BUCHAREST HIGH STREET RENTS Area Calea Victoriei Calea Dorobantilor Bulevardul Magheru Centrul Vechi Rent Level (Euro/sqm/month)* RENTS COUNTRYSIDE Rent Level CITY (Euro/sqm/month)* BRASOV (Piata Sfatului - Republicii Boulevard) Sibiu (N. Balcescu) Boulevard Cluj Napoca (Piata Unirii) 35-45

6 RETAILERS FOCUS

7 RETAILERS FOCUS EGO MEN S CONCEPT STORE LASCAR CATARGIU BOULEVARD BUCHAREST 500 SQ M DECEMBER 2012

8 RETAILERS FOCUS ZARA N. BALCESCU BOULEVARD SIBIU 1500 SQ M MARCH 2012

9 RETAILERS FOCUS MASSIMO DUTTI N. BALCESCU BOULEVARD SIBIU 350 SQ M JUNE 2012

10 RETAILERS FOCUS NISSA ROMANA SQUARE 260 SQ M JUNE 2010

11 RETAILERS FOCUS BSB MAGHERU BOULEVARD BUCHAREST 200 SQ M OCTOBER 2012

12 RETAILERS FOCUS PROMENADE N. TITULESCU BOULEVARD BUCHAREST 150 SQ M AUGUST 2012

13 RETAILERS' FOCUS

14 RETAILERS FOCUS

15 RETAILERS FOCUS Prime high street locations remain a strong alternative for fashion retailers no matter how many shopping centers will be opened in the near future.

16 THANK YOU! MIHAELA PETRUESCU Director Head of Retail Division CAPITAL PROPERTY ADVISORS Bucuresti Romania; 31A, Amiral Balescu St., district 1 T: ; F: ; M: ; mihaela.petruescu@cpadvisors.ro;