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

Leased Mallshypermart. The centre also includes an ice skating rink. Mal Taman Anggrek is targeting a wider marketthan GMP.• Megamall Pluit is located 6 kilometres northwest of GMP. The centre is anchored by Matahari andCarrefour and contains around 84,000 sq.m of retail space. While this centre is much larger than thesubject site, and is located 6 kilometres away, it is considered to be of competitive relevance as it ispositioned to cater for a similar target market as GMP. A major redevelopment of this mall is imminent asthe centre responds to competitive threats from new retail developments in its immediate vicinity.• Mangga Dua contains a number of retail facilities, predominantly strata malls, located 3 kilometres northof the subject site. The main malls include Mangga Dua Square (60,000 sq.m), WTC Mangga Dua(45,000 sq.m), ITC Mangga Dua (44,000 sq.m) and Mal Mangga Dua (35,000 sq.m). Based on the retailoffering at these centres, the area is targeting lower to middle income segment households which isbelow the customer profile targeted by GMP.• Mal Ciputra is situated 3 kilometres west of GMP. The mall is anchored by Batik Keris, Matahari andHero. This centre is also considered to be of particular competitive relevance, given it is located just3 kilometres away and as it is targeting a similar market to GMP, although without the Chinese targetmarket skew.• Mega Glodok Kemayoran is situated 3 kilometres east of GMP. Anchored by Indonesia Marine Centreand Home Ciento, the tenancy mix of the mall is dominated by automotive part retailers. Hence, it is ofminimal competitive relevance to the subject site.• Plaza Indonesia is one of the most exclusive malls in Jakarta, situated 3 kilometres south of GMP. Thecentre contains 42,000 sq.m of mainly high-end retailing, including a Debenham’s department store.Plaza Indonesia is targeting a more exclusive market than GMP.• Jakarta City Centre is located 3 kilometres south of the subject site. While the centre is relatively close, itis of minimal competitive relevance due to its lower target market position. It is a strata mall anchored bya Hypermart but no department store.The competitive environment of the trade area is expected to intensify over the next five years, with theplanned development of a number of competing retail facilities.There are a number of retail projects targeting middle income households currently under construction inJakarta, such as Gajah Mada Square (due to open in the third quarter of 2007), Mall of Indonesia (due toopen in the first quarter of 2008, and Emporium (due to open in the second quarter of 2009) , which will adda combined 378,000 sq.m of retail floor space to the Jakarta retail market by the end of 2009.These new projects are expected to reduce the sales growth that could have been achieved at GMP.However, given ongoing improvements proposed to the subject site, combined with its established marketposition as a value centre catering for middle to middle upper income Chinese households, GMP is wellplaced to withstand the new competitive threats. Furthermore, given GMP’s well defined target market,these centres are expected to have a relatively small impact on the performance of the subject site(compared with their impact on other centres in Jakarta).F-95