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

Leased MallsTable 4.7.4 Ekalokasari Plaza trade area: population growth and spending forecasts2007 (f) 2011 (f)%Growth2007-2011(p.a.)PrimaryTrade Area . . . . . . . Population 857,518 966,786 3.0%Households* 144,451 157,165 2.1%Retail Spending per Household (Rp. Million) 15.0 17.6 4.0%Total Retail Spend (Rp. Billion) 2,172 2,765 6.2%SecondaryTrade Area . . . . . . . Population 356,950 407,508 3.4%Households* 60,319 67,446 2.8%Retail Spending per Household (Rp. Million) 15.0 17.6 4.0%Total Retail Spend (Rp. Billion) 907 1,187 6.9%* 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 Consulting4.7.6 CompetitionEP is the most visited mall amongst its customers, with 66% of respondents surveyed reporting the subjectsite as the centre they visit most often.The main competing centres to EP are summarised in Table 4.7.5 and discussed below:• Botani Square opened in late 2006 and is potentially the strongest competitor to EP. Located2 kilometres north west of the subject centre, the two level mall of approximately 30,000 sq.mtargets a similar market to EP (middle income) and is anchored by a Giant Hypermarket and smallRimo department store. A third level of retail is expected to be added to the centre in 2008. As the centrebecomes established and achieves higher occupancy, its potential competitiveness to EP is likely toincrease.• Pangrango Plaza is a strata mall approximately 3 kilometres northwest of EP. The centre comprises aSarinah department store, Toko Bookstore and a large number of strata units over 7 levels. Total NLA is30,000 sq.m, although a large proportion of the upper floors are vacant. The centre targets thelow-middle income segment.• Bogor Trade Mall is located 3.5 kilometres west of EP and opened in 2006. It is anchored by Ramayanadepartment store and targets a lower income segment than the subject site.• Plaza Jambu Dua is located 7 kilometre north of EP and is a relatively small lease mall of 20,800 sq.m. Itis anchored by Ramayana and targets the middle lower income segment.• Plaza Bogor is a lease mall approximately 3 kilometres to the west of EP. The centre opened in 1993 andis anchored by Robinson and targets the middle income segment.Future competition will come from the proposed extension to Botani Square as mentioned above. Apartfrom this extension, there are no other known shopping mall developments within the Bogor region thatwould be considered a competitive threat to EP. Continued expansion, however, by major department storeretailers, hypermarkets and supermarkets may see further supply in the medium term, particularly in thisrelatively fast growing area of Greater Jakarta.F-104