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

Retail Spaces MallsThe store targets the middle to middle-upper income segment. Competing department stores are primarilytargeting the middle-lower income segment and located in the Malang CBD. These stores includeRamayana, Sarinah, Mitra and Ratu.HypermartHypermart is the only hypermarket in Malang. As such, the store enjoys a very strong market position,illustrated by it being the third best performing Hypermart within Indonesia in terms of total revenue.5.2.3 Trade area analysisBased on discussions with the store manager of Matahari and Hypermart, the trade area for Malang TownSquare is considered to approximate the whole city of Malang. The centre is conveniently located along amajor road (Jl. Veteran No. 2), providing the centre with good access to the surrounding population base,which includes prime residential districts and a large student population.The location of Malang Town Square within the context of the City of Malang, together with the locations ofmajor competing centres, is illustrated in the map below.Figure 5.2.2: Malang Town Square trade areaLeased Malls1. Plaza Araya2. Plaza Dieng3. Gajah Mada4. Plaza MalangFuture Project5. Mal Olympic GardenDepartment Store6. Mitra II7. Mitra IMalang Town Square2573461Source: Jones Lang LaSalle Research and Consulting & Malang City Map (KPS)It is noted that a major competing centre, Mal Olympic Garden, is currently under construction. The stratatitled centre will be anchored by a Giant Hypermarket with potential for a department store, although this isnot yet confirmed. It is located approximately 2 kilometres from Malang Town Square.Between 2007 and 2011, the population of the PTA is forecast to growth by an average annual rate of 2.2%.Future demand for high quality retail centres and retail stores is likely to be driven by income growth,population growth and changing patterns in customer shopping away from traditional markets towardsmodern shopping complexes.The number of target market households in the PTA is estimated at around 147,300 households in 2007.The PTA is forecast to contain approximately 160,700 target households in 2011.F-111