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

Leased Mallsstrong and loyal Chinese customer base, which was also confirmed through market research. This groupcomprises a high percentage of high income households.Trade area retail spending and forecast retail spending growth is summarised in Table 4.4.2 below.Together with modest population growth, total retail pending in the PTA and STA is expected to grow by 5%per annum between 2007 and 2011.Table 4.4.4 Istana Plaza trade area: population growth and spending forecasts2007 (f) 2011 (f)%Growth2007-2011(p.a.)PrimaryTrade Area . . . . . . . Population 396,430 412,361 1.0%Households* 99,525 103,524 1.0%Retail Spending per Household (Rp. Million) 19.5 22.8 4.0%Total Retail Spend (Rp. Billion) 1,940 2,362 5.0%SecondaryTrade Area . . . . . . . Population 489,545 509,218 1.0%Households* 84,824 88,233 1.0%Retail Spending per Household (Rp. Million) 19.5 22.8 4.0%Total Retail Spend (Rp. Billion) 1,654 2,013 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 Consulting4.4.6 CompetitionIP is the most visited mall amongst its customers, with 52% of respondents surveyed reporting the subjectsite as the centre they visit most often.The main competing centres to IP are summarised in Table 4.4.5 and discussed below:• Bandung Indah Plaza is approximately 2km east of IP and comprises 30,315 sq.m of NLA (followingextension) across four levels. The centre is anchored by a Hypermart and Matahari Department Store. Itis currently undergoing renovations which will increase the range of specialty retailers present as well asupgrade the entertainment and lifestyle offering in the centre. According to the market research surveyof visitors to IP, Bandung Indah Plaza is the centre of most competitive relevance, targeting a similarmarket segment to IP (middle to middle-upper income market).• Bandung Supermal is the largest shopping centre in the metropolitan area of Bandung with an NLA of48,800 sq.m NLA, and is located approximately 6km south east of IP. The centre targets the upperincome market in Bandung and is anchored by Metro department store and Giant Hypermart. It has astrong entertainment offering, including cinemas, bowling and Kota Fantasi. Given the largeconsiderable distance between the two centres, Bandung Supermal will primarily compete fordiscretionary spending from the upper income market rather than weekly convenience shoppingand may attract visitors from a wide area to its family oriented entertainment offerings.• Paris Van Java, a recently opened centre, It is approximately 2km north of IP. It has the potential toincrease in competitive relevance once all tenancies are occupied and established. The centrecomprises strong anchor tenants in Sogo department store and Carrefour and approximately38,000 sq.m of floor area. Its lifestyle offering is stronger than IP and includes Bandung’s only BlitzMegaplex cinemas. The centre targets the middle-upper income market.F-80