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

Leased MallsTrade area retail spending and forecast retail spending growth is summarised in Table 4.3.4 below.Together with modest population growth, total retail spending in the PTA and STA is expected to grow by5.0% per annum between 2007 and 2011.Table 4.3.4 Bandung Indah plaza trade area: population growth and spending forecastsSource: AC Nielsen; Economic Intelligence Unit; Jones Lang LaSalle Research and Consulting2007 (f) 2011 (f)% Growth 2007-2011 (p.a.)Primary Trade Area . . . . . . . . . . . . . . . . Population 544,313 566,187 1.0%Households* 124,947 129,968 1.0%Retail Spendingper Household(Rp. Million) 19.5 22.8 4.0%Total Retail Spend(Rp. Billion) 2,436 2,965 5.0%Secondary Trade Area . . . . . . . . . . . . . Population 573,521 596,569 1.0%Households* 97,213 101,119 1.0%Retail Spendingper Household(Rp. Million) 19.5 22.8 4.0%Total Retail Spend(Rp. Billion) 1,895 2,307 5.0%* Note: Total Households and Retail spending market only includes only those households assumed tofall within the target market (i.e., AC Nielsen’ Socio Economic Status (SES) categories A to C, describedas middle and upper income households). Spend market at 2007 prices (i.e. 2011 spend market at2007 prices; average annual retail spending per household and total retail spend market growthforecasts are real, not nominal, growth, excluding the effects of inflation)Source: AC Nielsen; Economic Intelligence Unit; Jones Lang LaSalle Research and Consulting4.3.6 CompetitionBIP is the most visited mall amongst its customers, with 57% of respondents surveyed reporting thesubject site as the centre they visit most often.The main competing centres to BIP are summarised in Table 4.3.5 and discussed below:• Bandung Supermal is considered the centre of greater competitive relevance, according to the marketresearch undertaken. The centre targets the upper income market in Bandung and is anchored by Metroand Giant Hypermarket. It has a strong entertainment offering, including cinemas, bowling and KotaFantasi. It is the largest shopping centre in the metropolitan area with an NLA of 48,800 sq.m, and isapproximately 4 kilometres south east of BIP. It is considered that Bandung Supermal will primarilycompete for discretionary spending from the upper income market rather than weekly convenienceshopping.• Riau Junction (Yogya) is less than 1 kilometre north of BIP. At the time of the market research, only theYogya supermarket at Riau Junction was opened. This centre will be fully opened by mid 2007 and willinclude a Yogya department store on levels 1 and 2 and food retailers on level 3. Its small size(approximately 6,400 sq.m) and limited offering suggests it will primarily compete with the departmentstore, supermarket and food & beverage retailers at BIP rather than the whole centre.• Istana Plaza is approximately 2 kilometres west of BIP and comprises over 27,000 sq.m of NLA over fivelevels. The centre is anchored by a small Hero supermarket, Rimo department store and Ace Hardwareand targets the middle to middle-upper income market.• Paris Van Java, a recently opened centre, has the potential to increase its competitive relevance once alltenancies are occupied and established. This centre has strong anchor tenants in Sogo and CarrefourF-72