EN CHEDRAUI CUESTA MENOS

CHEDRAUI annual report 2010Our real estate operations add tangible value toour business, generating 1% of revenues in 2010, butmore than 10% of EBITDA. The division is responsiblefor administration of our real estate in Mexico,both leased and owned, commercialization of ourcurrent shopping centers, expansion planning, andconstruction and remodeling of stores.In our own commercial developments, in which ourstores participate as anchor tenants, the remainingspace is leased to third parties. The administrationof these centers includes all services relatedto operational issues, legal matters, finance, andmaintenance. Almost 70% of our stores are company-owned.New store development is a key function of this division.We select geographic markets and store siteson the basis of demographic information, marketstudies, quality and nature of neighboring tenants,store visibility, traffic, public transportation, zoningand accessibility. The demographic variablesinclude population density, household income, ageand average number of occupants per household.The planning stage for opening a new retail storetypically lasts six months and construction five toeight months, depending on format. We expectstores to reach maturity within their first two yearsof operation on average.Real Estate FiguresTotal tenant spaces and kiosks 2,817Gross leasable area 267,324 m 2Occupancy rate 93.31%19