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

Leased MallsOn the completion of the current extensions, the ground floor will be anchored by Matahari DepartmentStore, Hypermart and Hero Supermarket. Consequently, the existing secondary malls should benefit fromimproved customer traffic accessing the Hypermart. Specialty retailers comprise food and beverage,fashion and accessories retailers. Key retailers include Kentucky Fried Chicken, Lee/Wrangler, Nokia andWendy’s. This level also includes a considerable amount of casual mall leasing and kiosks, creating amarket atmosphere within the central mall. Local retailers pitched at the middle income market dominate.Level One is anchored by the second level of Matahari and comprises the centre’s main entertainmentprecinct, including cinemas, Timezone and a food court. A book and stationery store (Toko Buku Utama) islocated on this level. There is a broad mix of specialty retailers, including mixed fashion, salons andaccessories.With the completion of the Hypermart, there will be a relatively large proportion of anchor and mini-anchortenants to specialty retailers. The Hero supermarket, Hypermart and Matahari Department Store accountfor over 59% of total NLA while mini anchors (Cinema 21, Timezone, bookstore) account for a further16.6%. This limits the number of specialty tenants within the centre but the strength of the anchor tenantshas kept the occupancy rate high and within the range of 95% to 98% in recent years.Compared to other shopping centres within the portfolio, there are relatively few internationally brandedretailers, a possible reflection of the customer profile. The centre does not include a fitness centre and hasa limited lifestyle and entertainment offer. There are some homewares and home furnishings retailers.However, this offering should be improved considerably with the opening of Hypermart.Nevertheless, the retail mix is considered to provide an appropriate selection of convenience andcomparison shopping for the residents of Cikarang.Table 4.5.3 Major tenants as at 30 June 2007, Mal Lippo CikarangTenant Expiry date % Gross monthly rentMatahari Dept Store . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9-Feb-26 18.0%Hero Supermarket . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9-Aug-08 11.8%Studio 21 Cinemas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16-Feb-15 4.2%Solaria . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16-May-12 4.1%Kentucky Fried Chicken . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9-Jun-10 3.1%Toko Buku Utama . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31-Aug-07 3.1%Sting. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31-Jan-12 2.8%Wendy’s Restaurant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14-Mar-12 2.4%Hoka-Hoka Bento . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22-Aug-07 2.2%Timezone . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30-Sep-11 1.9%Other tenants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Varies 53.5%Total Centre ......................................... 100.0%Source: Jones Lang LaSalle Research and Consulting, PT. Lippo Karawaci, TbkNote: Hypermart under construction. Matahari Department Store to expand into supermarket space4.5.4 Target marketMLC primarily targets the middle income market, with the majority of its customer base coming from theLippo Cikarang residential and industrial estates. During the week, the centre is also frequented by thelarge working population within the estate, which totals 65,000. On weekends, it is frequented mainly byfamilies.4.5.5 Trade area analysisTo assist with the definition of trade areas and to understand the make-up of the customer base, a marketresearch survey of visitors to the major leased malls was undertaken in February and March 2007. A totalof seven (7) centres were included in the study. The surveying was conducted by TNS on behalf of JonesF-85