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

Leased Malls• Cihampelas Walk is located 2km north east of IP. The “open air” centre of approximately 28,400 sq.mhas a significant lifestyle focus, with al fresco dining and cinemas. It also comprises a Yogya departmentstore and supermarket. The centre targets the middle and middle-upper market.• Riau Junction (Yogya) is approximately 2km east of IP. At the time of the market research, only the Yogyasupermarket at Riau Junction was opened. This centre will be fully opened by mid 2007 and will includea Yogya department store on levels 1 and 2 and food retailers on level 3. Its small size (approximately6,400 sq.m) and limited offering suggests it will not be a major competitive threat to IP, but it doesstrengthen the overall retail offering within the Bandung CBD, being near Bandung Indah Plaza.Each of IP’s four major competitors has cinemas and as a result it could be argued that they provide a morecomplete entertainment offering. However, IP enjoys a higher occupancy rate than its major competition,suggesting that it has successfully provided the right combination of retailers for its target market.Other shopping centres within the trade area do not tend to provide the full range of shopping that isavailable at IP.There are no known major shopping mall developments approved or under construction in Bandung.However, given the relative strength of retail supply in recent years, particularly in Greater Jakarta, it ispossible that further centres will be developed. Major drivers will be the continued expansion plans of majorinternational and national department stores and hypermart chains in the main metropolitan areas ofIndonesia.Table 4.4.5: Main competition, Istana PlazaCentre nameDistancefromIstanaPlazaTypeNLA(sq.m)YearopenAnchortenantsBandung Indah Plaza . . . . . . 2 km Lease 30,315(followingextension)1990 Matahari, Hypermart, Yogyasupermarket, Studio 21Bandung Supermal . . . . . . . 6 km Lease 48,800 2001 Metro, Giant, Kota Fantasi,Cinemas, GUBA (bowling)Paris Van Java . . . . . . . . . . . 2 km Lease 38,000 2006 Sogo, Carrefour, BlitzMegaplexCihampelas Walk . . . . . . . . . 2 km Lease 28,400 2004 Yogya supermarket &department store, CinemasSource: Jones Lang LaSalle Research and Consulting4.4.7 SWOT analysisTable 4.4.6 provides a summary of the strengths, weaknesses, opportunities and threats for IP.Table 4.4.6 SWOT analysis, Istana PlazaStrengthsStrategically located at the junction of two main roads. Ithas a loyal customer base and strong appeal from the largeChinese populationIt acts as a community hub for the middle-upper residentialcommunity within close proximity to the centreProvides a unique and comprehensive tenancy mixincluding Ace Hardware store and Agis Electronic, cateringwell to both male and female shoppersWeaknessesThe Hero supermarket is relativelysmall at 1,341 sq.m, significantlysmaller than the competitionThere are no cinemas or fitness centre,which would appeal to customersotherwiseParking can be very difficult onweekend, although adjacent sitesprovide additional capacityF-81