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

Leased MallsThe target market for MLC are middle-upper income households, which represent 71% of all households inthe PTA and 64% of households in the STA.Trade area retail spending and forecast retail spending growth is summarised in Table 4.5.4 below.Together with modest population growth, total retail spending in the PTA and STA is expected to grow by5.2% per annum between 2007 and 2011.Table 4.5.4 Mal Lippo Cikarang trade area: population growth and spending forecasts2007 (f) 2011 (f)%Growth2007-2011(p.a.)Primary Trade Area . . . . . . . . . Population 462,085 483,170 1.1%Households* 84,962 88,839 1.1%Retail Spending per Household 15.0 17.6 4.0%(Rp. Million)Total Retail Spend (Rp. Billion) 1,277 1,563 5.2%Secondary Trade Area . . . . . . Population 361,362 377,851 1.1%Households* 60,099 62,842 1.1%Retail Spending per Household 15.0 17.6 4.0%(Rp. Million)Total Retail Spend (Rp. Billion) 903 1,106 5.2%* 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 Consulting4.5.6 CompetitionMLC enjoys the benefit of a very captive market, being the only major shopping centre serving the LippoCikarang Estate. Therefore, it does not have major competitors for everyday shopping needs. It does,however, compete with a number of other shopping centres in the wider trade area for discretionaryspending.The main competing centres to MLC are summarised in Table 4.5.5 and discussed below:• Mal Metropolitan is located 20 kilometres north west of MLC in Bekasi. The centre comprises74,000 sq.m of NLA and is anchored by Matahari and Ace Hardware. The centre is targeting middleincome households and is considerably larger than MLC but its distance from MLC reduces the level ofdirect competition.• Mal Carrefour Cikarang was completed in early 2007. The two-level centre is 4 kilometres from MLC andis likely to provide competition in the grocery and variety retailing market. It does not, however, providesuch a complete range of retailing as is provided by MLC and is not as conveniently located to the captivetarget market of Lippo Cikarang Estate. Apart from Carrefour, there is a limited range of food andbeverage retailers, specialty retailers and “trade mall” style retailing.• SGC Cikarang is a strata titled mall approximately 9 kilometres to the north of MLC. The centre openedin 2006 and is anchored by Ramayana Hypermarket.• Cikarang Trade Centre is located 2 kilometres north of MLC. The strata titled centre comprisesapproximately 10,000 sq.m of NLA, does not include an anchor tenant and targets the low-middleincome market.• Mega Bekasi Hypermall is a relatively large centre of 63,000 sq.m anchored by Giant Hypermarket. Thecentre is located 20 kilometres north west of MLC, which reduces the level of direct competition to thesubject centre.F-87