LIPPO-MAPLETREE - Lippo Malls Indonesia Retail Trust - Investor ...

Retail Market Overview2.6 Retail provision and pipeline of shopping centresThe opening of the domestic retail industry to global players in 1998 has boosted the development of retailshopping malls in Indonesia. In the early post-crisis period (2000-2001), new retail developments wereconcentrated in Jakarta and its surrounding areas, but more recently other cities such as Surabaya,Medan, Bandung, Semarang, Palembang, Denpasar, Makassar and a number of secondary cities havewitnessed shopping centre development.In Greater Jakarta (which includes satellite cities such as Depok, Tangerang, Bekasi and Bogor), there arecurrently 130 shopping centres with a total stock of approximately 4.1 million sq.m, comprising leased andstrata-title retail space.With limited regulations governing where new supply can be established, new centres continue to be built,often as part of mixed use projects and often within close proximity to existing malls.Figure 2.6.1: Retail distribution by area and type600,000'000 Sq. m500,000400,000300,000200,000Leased MallsStrata-titled Malls100,0000CJ SJ NJ WJ EJ BGR BKS DPK TGRLocationSource: Jones Lang LaSalleNote: CJ: Central Jakarta; SJ: South Jakarta; NJ: North Jakarta; WJ: West Jakarta; EJ: East Jakarta,BGR: Bogor; BKS: Bekasi; DPK: Depok; TGR: TangerangIn Jakarta, existing shopping malls are concentrated in Central Jakarta, with around 30% of total stock,followed by South and North Jakarta with around 26% and 23% respectively. Existing shopping malls inWest and East Jakarta make up around 14% and 8% of total stock respectively.Outside Jakarta, most of the retail stock, about 40%, is concentrated in Tangerang, followed by Bekasi(26%) and Bogor (21%). Retail stock in Depok accounts for approximately 13% of the “outer Jakarta”stock.Over the next three years, 19 new shopping malls are set to enter the market in Jakarta, with total potentialstock of around 960,972 sq.m. Of this total stock, approximately 42% are Upper Grade, 39% are MiddleGrade and 19% are Lower Grade.A further eight retail projects outside of Jakarta have been proposed. These are planned for completion bythe end of 2008. They will potentially add approximately 234,600 sq.m of retail stock, of whichapproximately 58% and 42% are Middle Grade and Lower Grade respectively.Table 2.6.1: Proposed retail projects in greater jakarta areaA. Within JakartaCompletionyearName ofshopping centre Address Developer SectionNet lettablearea (sq.m)2007 . . . . . . . Grand Indonesia Jl. MH Thamrin Djarum Group Central Business108,000District (CBD)2007 . . . . . . . Citywalk Sudirman Jl. KH Mas Mansyur Duta Anggada Realty CBD 17,3002007 . . . . . . . Pacific Place Sudirman CBD PT Metropolitan MuliaPersadaCBD 75,000F-28