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

Leased Mallscontinue growing up to 2011. The PTA is forecast to contain around 283,900 target households in 2011,while the STA is forecast to contain approximately 440,100 target households.Average expenditure by households within the subject site’s target market is estimated at Rp. 21.3 millionper annum in 2007. Average annual household retail expenditure is expected to reach Rp. 24.9 million by2011.As a result, the annual total retail spending market in the PTA is forecast to increase from Rp. 5,759 billionin 2007 to Rp. 7,076 billion in 2011, which represents an average annual rise of 5.3%. The correspondingincrease in the secondary retail market is a rise from Rp. 8,893 billion to Rp. 10,971 billion, which reflectsaverage annual growth of 5.4%.Table 4.2.4 details the current and forecast levels of population growth and retail spending by householdsthat fall within the centre’s target market (i.e. middle and upper income households).Table 4.2.4 The Plaza Semanggi trade area: population growth and spending forecasts2007 (f) 2011 (f)%Growth2007-2011(p.a.)Primary Trade Area . . . . . . . Population 1,169,586 1,160,351 (0.2)%Households* 270,387 283,877 1.2%Retail Spending perHousehold (Rp. Million) 21.30 24.93 4.0%Total Retail Spend (Rp. Billion) 5,759 7,076 5.3%Secondary Trade Area . . . . . Population 1,808,702 1,780,406 (0.4)%Households* 417,531 440,130 1.3%Retail Spending perHousehold (Rp. Million) 21.30 24.93 4.0%Total Retail Spend (Rp. Billion) 8,893 10,971 5.4%* Note: Total Households and Retail spending market only includes only those households assumed to fallwithin the target market (i.e., AC Nielsen’ Socio Economic Status (SES) categories A to C, described asmiddle and upper income households). Spend market at 2007 prices (i.e. 2011 spend market at 2007prices; average annual retail spending per household and total retail spend market growth forecasts arereal, not nominal, growth, excluding the effects of inflation)Source: AC Nielsen; Economic Intelligence Unit; Jones Lang LaSalle Research and Consulting4.2.6 CompetitionThe PS is the most visited mall amongst its customers, with 43% of respondents to the market researchsurvey reporting the subject site as the centre they visit most often.The local centres of competitive relevance (i.e. centres larger than 20,000 sq.m), including their distancefrom The PS, opening year, amount of retail floor space and major tenants, are detailed in Table 4.2.5. Thelargest centres are discussed below:• Mal Kelapa Gading is located 10 kilometres from The PS. However, due to its large size (130,000 sq.m)and established position (the centre has been open since 1990), it is of competitive relevance in abroader sense. Mal Kelapa Gading is anchored by upmarket department stores and supermarketoperators Sogo and Diamond.• Pondok Indah Mall is a large lease mall located in South Jakarta, 6 kilometres southwest of the subjectsite. The mall contains around 100,000 sq.m of retail space and is anchored by a number of departmentstores. The centre also contains cinemas.• Mal Taman Anggrek is situated 5 kilometres to the northwest of The PS, but is easily accessible from thesubject site via Jendral Gatot Subroto, the tollway road. The centre contains nearly 100,000 sq.m ofretail space, including Metro and Galleria department stores and a Hero hypermart. The centre alsoincludes an ice skating rink. Mal Taman Anggrek is targeting a wider market than The PS.F-62