Broll Property Group (Pty) Ltd, established in 1975 is a multi-disciplinary property services provider operating throughout sub-saharan Africa

Transcription

1 Click Broll South to edit Africa Master title style Broll Property Group (Pty) Ltd, established in 1975 is a multi-disciplinary property services provider operating throughout sub-saharan Africa through various local partnerships. Since 2004 with our CBRE affiliate status we offer a global vision with local talent to produce effective property solutions.

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3 Click What to Do edit We Master See? title style No-frills gyms, home improvement centres and motor-related tenants have been active in acquisition of sites Increased convenience retail with forecourt offerings from retailers such as Woolworths, Thrupps Struggling retail centres converted to Chineseowned malls Furniture stores are under increasing pressure Turnover only deals at struggling centres Discount Fashion (PQ, Mad Max, Jam, Fashion Fusion)

4 Click What to Do edit We Master See? title style Increased enquiries from Frozen yoghurt, Chesa Nyama, Fish n Chip concepts (saturation) Education brands such as Kumon and Master Maths are moving into previously difficult to let retail space Growing online retail market CBD retail National Retailers Discount Department stores (Westpack, Crazy Plastics, Hanson Home) Outlet Banks Space rationalization

5 Click Increased to edit Competition Master title style Supermarket giants fight for market share Row over lease exclusivity clauses driven by the spending slowdown MASSMART filed complaint with the Competition Commission regarding its fresh food business, Foodco, at Game stores in malls which is being obstructed by Shoprite and Pick n Pay

6 International Click to edit Master Retailers title style Zara has about 10 local stores and Cotton On over 110 stores in 3 years H&M, Forever 21, Edcon introducing more international brands Brands offer something different, providing consumers (and Landlords) with more choice Partnerships, Licence Agreements, Master Franchise agreements Size Constraints Category saturation

7 International Retailers Click to edit Master title style SA vs The Globe Note : 334 leading international brand retailers were identified as representatives of the global retail community Source : CBRE SA Rank rd out of 61 countries with 16% presence Up from 14% in 2013

8 International Retailers Click to edit Master title style SA Cities vs Global Cities SA Cities Rank 2014 Out of 189 countries Source : CBRE

9 Click Some to International edit Master Retailers title style in SA

10 Retail Click to edit Master title style Space

11 Click Retail to Space edit Master in Perspective title style Source : SACSC & StatsSA

12 Click Retail to Space edit Master per Province title style (m²) 9,285,676 1,052, ,095 1,333, , ,960 2,915,987 3,189,124 1,119,433 Total 20,769,208 Source : SACSC

13 Click Retail Space to edit per Master Type of title Centre style (m²) Super Regional > 100,000m² Regional 50,000-99,999m² Small Regional 25,000-49,999m² Community 12,000-24,999m² Neighbourhood and Local Convenience < 12,000m² Source : SACSC

14 Click Retail to Space edit Master title style (Building Plans Passed and Buildings Completed) Source : StatsSA Building plans passed July 2013 June 2014 = 899,419m² potentially on the market within next 6 to 18 months Buildings completed = 520,497m²

15 Average Completion of Retail Space Click to edit Master title style (Per Annum July June 2014) Recession Source : Broll

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17 Click Retail to Performance edit Master title style Source : IPD

18 Click Gross to Rent edit (R/m²) Master title style Source : Broll

19 Click Rent to Turnover edit Master Ratio title style Source : Broll

20 Click Escalations to edit Master title style Outlook : Escalations are under pressure due to costs rising faster than the inflation rate Source : Broll

21 Average Trading Density per Province Click to edit Master title style City vs Decentralised Source : Broll

22 Average Trading Density Click to edit Master title style City vs Decentralised Decentralised centres perform average in all categories with the exception health and food services In general larger cities outperform smaller cities Source : Broll

23 Average Trading Density Click to edit Master title style Type of Centre Apparel Small regional and value centres top performers Beauty Not performing well in neighbourhood centres Health Good trading in most types of centres with lowest trading in small regional centres Homeware Source : Broll Best performance in community centres

24 Average Trading Density Click to edit Master title style Food Services vs Groceries Food services Regional centres : a social gathering place Value centres : purchasing of value goods not so much social experience Groceries Source : Broll Convenience and neighbourhood centres due to size and convenience Regional more for social experience

25 Apparel : Account vs Cash Click to edit Master title style (Average Trading Density) On average cash based stores trade better than account base stores Cash based stores On average perform best in value centres Highest trading density in neighbourhood centres Account base stores Source : Broll On average perform best and have highest trading density in neighbourhood centres

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27 Mall Click of to Africa edit Master title style Largest single retail first phase ever constructed in sub-saharan Africa Situated in a $2bn mixed-use precinct; retail mall around 130,000 m 2

28 Click Mall of to Africa edit Master Trading title Area style Source : Urban Studies

29 Urban Regeneration Click to edit Master title style Maboneng Precinct Urban regeneration project Privately developed urban neighbourhood on eastern side of Johannesburg CBD Home to independent retailers (street level), restaurants and entertainment venues Includes loft apartments, offices, hotel, a museum and creative factory spaces

30 Urban Regeneration Click to edit Master title style Braamfontein CID CID initiative played a major role in the retail market, shop owners re-doing shop fronts, extending trading hours and providing outdoor eating areas. Retail market has seen a number of flagship stores and new brands eg Virgin Unite, Puma, Design of Sweden

31 Urban Regeneration Click to edit Master title style Newtown Cultural Precinct Started as a cultural precinct which includes the Market Theatre and Museum Africa Number of entertainment facilities surrounding Mary Fitzgerald Square Home to Newtown Junction mixed-use development (36,000m² shopping centre, 40,000m² offices, hotel and gym)

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33 Click Current to edit Shopper Master Behaviour title style Recent Consumer Survey report indicated that 95% of people still prefer to go to a shop Source : Broll

34 Expected Click to edit Shopping Master title Behaviour style Survey showed that 73% of shoppers will either increase visit to shop or expect no change Shoppers still prefer the social behaviour of shopping Shoppers expect to go more online Source : Broll

35 Click Online to Shopping edit Master title style Logistics is an issue both in terms of distance and infrastructure Lack of suitable warehouse space Quality of local logistic companies

36 Click to edit Master title style The African Picture

37 Click to edit Master title style PERCEPTION ABOUT AFRICA RETAIL IS CHANGING

38 Our Retail Portfolio Click to edit Master title style Property Management m 2 Total West Africa SADC East Africa 3,675,333 m²of a total 6,174,432 m² 291retail centre s 133,445m² 9 retail centre s 3,338,888m² 275 retailcentre s m² 7 retail centre s 60% of total pm is retail

39 Our Retail Portfolio Leasing Click to and edit Projects Master title style Over 1,099,748 m² active retail projects due for completion within next 24 months Additional projects under investigation m² West Africa 316, 000 m² 23 projects Gla from m² to m² Av e SADC 482,748 m² 19 projects Gla from m² to m² East Africa 301,000m² 11 projects Gla from m² to m² Total number of projects 53 65% in number of projects outside SA Geographic spread In GLA -28% in West Africa -44% in SADAC -28% IN East Africa Average line shop rental $ m² Retailers -Master Franchise -Middle East emerging -European brands -Local retailers strengthening Average line shop rental $ m² - Angola ; SA $ 35-45m² in regional mall Retailers -Master Franchise -Middle East retailers in Angola, limited interest in SA -Entrance of international luxury brands -Strong SA local retailers expanding Average line shop rental $ m² Retailers - Strong established local retail market - Master Franchise - Middle East Retailers - SA retailers interest - Creating a retail fund

40 Two Rivers, Nairobi, Kenya Click to edit Master title style Largest Mixed Use Development under construction in East Africa m² retail 18000m² office plus some residential Broll awarded management and involved with leasing

41 Click to edit Master title style West Hill Shopping Centre, Accra,Ghana Largest West African Shopping Centre 26,800m² Broll leased and to manage opens Oct 2014

42 Click to edit Master title style Mundial Shopping Centre, Luanda, Angola Largest centre under construction in Angola -50,000m² Broll leasing mandate and in discussions to manage

43 Click to edit Master title style Angola Regional centre - enclosed GLA = 50,000m² Anchor tenants or Belas Shopping Centre - extension GLA = 16,000m² Anchor tenant

44 Click to edit Master title style Angola Small regional centre - enclosed GLA = 26,000m² Anchor tenant Community centre - enclosed GLA = 15,000m² Anchor tenant

45 Click to edit Master title style Namibia Werhill extension enclosed mall GLA = 11,000m² mall will be sqm The Grove enclosed mall ;largest outside SA GLA = 54,939m² Anchor tenant

46 Click to edit Master title style Ghana Small regional centre - enclosed GLA = 26,800m² The Exchange enclosed mall GLA = 11,000m² Anchor tenant

47 Click to edit Master title style Nigeria Jabi Lake Abuja - enclosed GLA = 26,000m² Anchor tenants The Palms Extension,Lagos GLA = 20,000m² Anchor tenants

48 Click to edit Master title style Nigeria Ado Bayero,Kano - enclosed GLA = 24,000m² Anchor tenants Airport Mall, Lagos - enclosed GLA = 18,000m² Anchor tenant

49 Click to edit Master title style Nigeria Festac Mall, Lagos - enclosed GLA = 16,000m² Anchor tenant Port Harcourt Mall, Port Harcourt GLA = 16,000m² Anchor tenant

50 Click to edit Master title style Nigeria Delta City & Osapa Neighbourhood centre - enclosed GLA = 10,400m² GLA = 13,800m² Anchor tenant

51 Click to edit Master title style Kenya Small regional centre - enclosed GLA = 49,000m²- Broll to manage Opens March 2016 Garden City Mall - enclosed & mixed use GLA = 47,000m² - Broll to manage Opens Oct 2015

52 Click to edit Master title style Kenya Buffalo Mall enclosed mall GLA = 20,000m² - Broll to manage Open phase 1 Nov 2014 The Hub enclosed mall GLA = 29,000m² - Broll to manage Open first quarter 2015

53 Click Nigeria to : edit International Master title Tenants style CURRENT BRANDS* FORTHCOMING BRANDS

54 Click Ghana to : edit International Master title Tenants style

55 Click Angola to : edit International Master title Tenants style

56 Click Kenya to : International edit Master title Tenants style

57 Thank Click to you edit Master title style Preston Gaddy