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

Leased MallsImportantly for GMP, 92% of all households in the PTA fall within the targeted middle to upper income group(defined as including households which are classified as SES A, B and C), while a similar proportion of STAresidents (91%) are also within this target demographic. As a result, the number of target markethouseholds in the PTA is estimated at 429,300 households in 2007. The corresponding figure for theSTA is 297,600 households.The population is forecast to decrease over the next four years, however as a result of the composition ofpopulation changes and reducing household sizes, the number of target market households is expected tocontinue growing up to 2011. The PTA is forecast to contain around 456,500 target households in 2011,while the STA is forecast to contain 315,500 target households.Average expenditure by households within the subject site’s target market is estimated at Rp. 21.3 millionper annum in 2007. Over the next four years, average annual household retail expenditure is expected toreach Rp. 24.93 million by 2011.As a result, the annual total retail spending market in the PTA is forecast to increase from Rp. 9,144 billionin 2007 to Rp. 11.380 billion in 2011, which represents an average annual rise of 5.6%. The correspondingincrease in the STA is a rise from Rp. 6,339 billion to Rp. 7,872 billion, which reflects an average annualgrowth of 5.6%.Table 4.6.4 details the current and forecast levels of population growth and retail spending by householdsthat fall within the centre’s target market (i.e. middle and upper income households).Table 4.6.4 Gajah Mada Plaza trade area: population growth and spending forecastsSource: AC Nielsen; Economic Intelligence Unit; Jones Lang LaSalle Research and Consulting2007 (f) 2011 (f)%Growth2007-2011(p.a.)Primary Trade Area . . . . . . . . . Population 1,826,353 1,767,411 (0.8)%Households 429,298 456,523 1.5%Retail Spending per Household (Rp. Million) 21.30 24.93 4.0%Total Retail Spend (Rp. Billion) 9,144 11,380 5.6%Secondary Trade Area . . . . . . . Population 1,190,502 1,167,889 (0.8)%Households 297,587 315,823 1.5%Retail Spending per Household (Rp. Million) 21.30 24.93 4.0%Total Retail Spend (Rp. Billion) 6,338 7,872 5.6%* 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 Consulting4.6.6 CompetitionGMP is the most visited mall amongst its customers, with 53% of respondents surveyed reporting thesubject site as the centre they visit most often.Located in the affluent Chinatown precinct of Jakarta, GMP faces strong competition locally from 13 largemalls located within a 6 kilometre radius of the centre. However, a large number of the nearby centres arepositioned to cater for a higher or lower market segment than that being catered for at GMP.The local centres of competitive relevance (i.e. centres larger than 20,000 sq.m), including their distancefrom GMP, opening year, amount of retail floor space and major tenants, are detailed in Table 4.6.5. Thelargest centres are discussed below:• Mal Taman Anggrek is situated 3 kilometres to the south west of the subject site. The centre containsnearly 100,000 sq.m of retail space, including Metro and Galleria department stores and a HeroF-94