Upload
others
View
2
Download
0
Embed Size (px)
Citation preview
Hammerson in France 27 June 2017
Les Terrasses du Port, Marseille
Schedule for today
01 Introduction Rebecca Patton – Head of Investor Relations Jean-Philippe Mouton – Managing Director, France Aurelie Siha – Finance Director, France Barthélémy Doat – Director of Operations, France
02 Italie Deux, Paris 13ème Vincent Sadé – Director of Investment & Asset Management, France Kevin Magnin – Asset Manager, Italie Deux
03 La Vallée Village, Premium Outlet Duncan Agar – Chief Operating Officer, Value Retail
04 O’Parinor, Aulnay-sous-Bois Vincent Sadé – Director of Investment & Asset Management, France Edouard Bernot – Asset Manager, O’Parinor
2
01 Introduction
Rebecca Patton – Head of Investor Relations
Jean-Philippe Mouton – Managing Director, France
Aurelie Siha – Finance Director, France
Barthélémy Doat – Director of Operations, France
13 Countries
42% non-UK assets
Top 3 Market position in all chosen sectors
34%
21%
9%
13% 17%
6%
UK shopping centres - £3.4bn
France - £2.1bn
Ireland - £0.8bn
UK retail parks - £1.3bn
Premium outlets - £1.7bn
Development & other - £0.7bn
Hammerson has a £10 billion leading pan-European retail platform
11 - UK shopping centres
10 - France shopping centres
3 - Ireland shopping centres
18 - UK retail parks
19 - Premium outlets
61 European shopping destinations
280m visitors
4,800 Tenants
2.2m sq ft retail space
4
Data as at 31 December 2016
Bullring Birmingham
Dundrum Town Centre Dublin
Les Terrasses du Port Marseille
Brent Cross London
Bicester Village Oxford
Italie Deux Paris
Westquay Southampton
The Oracle Reading
Victoria Leeds
Cyfarthfa Retail Park Merthyr Tydfil
Elliots Field Rugby
Les Trois Fontaines Cergy
Dundrum, Dublin Victoria, Leeds Zweibrücken, Germany
Focus on growing consumer markets Significant cities and catchments in selected European countries; where we can gain market share • Experience of large prime shopping
centres • Convenience of retail parks • Luxury brand premium outlets
Create differentiated destinations Talented team cultivating retailer relationships and consumer insight Product Experience Framework: consistent and rigorous approach Proactive leasing to drive consistent rental growth
Promote financial efficiency and partnership Prudent debt management and diverse sources of capital JV partners create a larger operating platform relative to invested capital Long-standing relationship with Value Retail in European outlets
Core pillars of strategy
6
A strategy that delivers consistent income-focused returns
7 (1) Adjusted EPS (2) EPRA NAVPS
NAVPS (pence) (2)
739
200
250
300
350
400
450
500
550
600
650
700
750
2011 2012 2013 2014 2015 2016
+4.1%
CAGR +6.9%
EPS (pence) (1) DPS (pence)
29.2
10
12
14
16
18
20
22
24
26
28
30
2011 2012 2013 2014 2015 2016
CAGR +8.6%
24.0
10
13
15
18
20
23
25
2011 2012 2013 2014 2015 2016
CAGR +7.7%
+8.6% +7.6%
France: Economic momentum and supportive political result
8 Source: Oxford Economics / Haver Analytics
Consumer relatively resilient through terrorism and political uncertainty
Macron’s election and parliamentary majority is a positive result for the French economy
Unemployment falling and further labour market reforms expected
However, inflation will impact real wage growth
ECB backdrop remains accommodative supporting Real Estate investment
Consumer spending and confidence
Short term lending rates to corporates
9
Hammerson in France
10 shopping centres
1,000 tenants
450,000 m2 space
30 years in France
100m visitors
96.5% Occupancy
9
Espace Saint-Quentin, Saint Quentin-En-Yvelines
Italie Deux, Paris
Jeu de Paume, Beauvais
Les Trois Fontaines, Cergy Pontoise
Les Terrasses du Port, Marseille
Nicetoile, Nice
O’Parinor, Aulnay-Sous-Bois
Place des Halles, Strasbourg
Saint Sébastien, Nancy
SQY Ouest, Saint Quentin-En-Yvelines
Premium outlets
La Vallee Village, Paris (Value Retail)
Our shopping centre assets
A core asset strategy in France
(1) By value (2) 2016 leasing versus previous passing at Les Terrasses du Port, Italie Deux and Les Trois Fontaines
Les Terrasses du Port
Italie Deux
Les Trois Fontaines
Regional
Other
Focus on attractive and resilient prime centres
70%(1)
62,700m2
190 boutiques open 7/7 Rooftop terrace 1,500m2 13m footfall
61,500m2
130 boutiques Refurbished 2013 12m footfall
64,000m2 150 boutiques Refurbished 2016 13m footfall
Les Terrasses du Port Marseille
Italie Deux Paris
Les Trois Fontaines Cergy
+58% Average asset size vs 2011(1)
+17% Leasing vs previous passing(2)
10
Delivering success at Les Terrasses du Port, Marseille
11
Exceptional trading performance
2016 net rental income growth 10%
Sales CAGR +12% since opening
Entry for new brands into France:
Sensational customer experience
Stunning new Apple store
Unique catering with Mediterranean views
PLUS App
Enhancing shareholder returns
Developed 2014
Yield on cost 7%
Revaluation uplift +52%
Creating differentiated destinations
12
Dedicated refurbishment 2012-2015, €30m
Seamless multichannel experience Best in practice digital offer
PLUS app
Italie Deux O’Parinor
Amazon lockers
Iconic placemaking
Apple at Les Terrasses du Port R2 at Les Terrasses du Port
Adding new international brands
13
New international brands added in 2016
20% Retail offer renewed last 3 years
Future development opportunities in France
14
28,000 m2 retail and catering extension as part of a wider city centre project
Co-ownership agreement, building permit and retail consent obtained
Good pre-letting
Contractor process started
Cergy, Les Trois Fontaines Italik, Italie Deux
(1) Excludes acquisition of additional property interests (2) Hammerson share
6,500 m² retail and leisure project to promote differentiated destination
Retail consent obtained
Building permit submitted Q1 2017
Earliest start on site 2018
02 Italie Deux
27.06.17
Italie Deux: a leading shopping centre in Paris with strong fundamentals
• Opened in 1976
• 132 shops on 3 trading levels, totalling 61,500 m2
• MSUs : Printemps, FNAC, Carrefour, Zara, Go Sport, Tati, Darty, La Grande Récré
• 1,500 car park spaces
• Acquired in 1998 (100% ownership), renovated in 2001 and in 2013
• 12 million visitors p.a.
• Vacancy below 1%
• Turnover of €325 m (incl. VAT)
• Gross rental income € 25 million p.a.
• Average rent: €520 /m2
16 Note: Data as at 31 December 2016
Key facts
A long term strategy implemented since 1998 to grow the asset value
17
2007 Carrefour market
2012/2013 Renovation
1976 Creation of GALAXY 2
1992 Creation of Grand Ecran
2001 Heavy renovation
1998 Acquisition by Hammerson
2004 Food Court
2006 Cinema closes
2015/2018 Extension Theatre opening
Women Paris resident Household Monthly Net Income
75% 59% €2,464/mois
Average age
40 y.o. Families
41% Mode of transport
Customer profile A young, diversified and dynamic customer profile
7 %
38 %
50%
Source SAD survey, 2013 18
Location and accessibility
Located in the heart of Paris – 13th arrondissement
Strong and affluent catchment area with 765,500
residents (1)
Iconic and well-known building amongst Parisians
Excellent public transport links:
• 3rd biggest metro station in Paris with 3 metro lines
• 6 bus lines
Immediate road links:
• 5 min from Paris ring road
• 15 min from Orly airport
19 (1) SAD study, 2016
An iconic location in the heart of Paris benefitting from an outstanding accessibility
20
Main retail competition in central Paris
1. Beaugrenelle (50,000 m²)
2. Galeries Lafayette/ Printemps
3. Forum des Halles (80,000 m²)
4. Quatre Temps (139,000 m²)
1
2
3
4
Italie Deux
Retail competition A leading position in the South of Paris
Anchors
Principales enseignes
Restaurants
Notable tenants A strong and diversified tenant mix
21
Interior redesign and refurbishment
22
A renovated shopping centre…
• Modern design with a new identity
• Full refurbishment of ceilings, lighting and flooring
• Redesign of seating and kids areas
• New customer services
Hammerson total investment €17 million
Triggering an upgrading shift in tenant mix
• Exclusive brands (Lacoste, Rituals, Kusmi Tea, Hema…)
• Accelerated tenant rotation
• Encouraged concept renovations (Bocage, Malboro Classics, Heyraud, Pimkie, L’Occitane, Courir…)
The new identity triggered a positive shift to the tenant mix
Extension project – ITALIK
23
Opportunity
Key facts
• Create a modern and commercial façade for the shopping centre on a major axis
• Opportunity to attract aspirational brands
• Provide Italie Deux with a new dynamic and appeal to a wider shopper catchment
• Additional GLA: 6,500 m2
• 12 additional retail units (including 3 MSUs). Heads of terms signed with Pret a Manger and UNIQLO
• A 900m2 event area operated by Noctis (existing operators of the rooftop at Les Terrasses du Port, Marseille)
• Administrative consents submitted in Q1 2017
• Earliest start on site 2018
An ambitious project to open the shopping centre on avenue d’Italie
Theatre opening
24
Opportunity
Key facts
• Opening of a 900-seat theatre located in the main entrance of the shopping centre
• Enhance the merchandising mix of the site with a cultural offer to drive more footfall
• Improve visibility of the site
• Additional GLA: 4,500m2
• Unit to be operated by ‘Juste pour Rire’ (Just for Laughs), a famous Canadian cultural company
• Will host several activities such as shows, events, TV show recordings
• Opening October 2017
The 900-seat theatre will bring a notorious and unique cultural offer
Appendices
25
Lower floor
26
Ground floor
27
Upper floor
28
03 La Vallée Village
Duncan Agar– Chief Operating Officer, Value Retail
19 Villages
13 Countries
47m Visitors
A platform of considerable scale – a leading market position
11 - UK shopping centres
10 - France shopping centres
1 - Ireland shopping centres
18 - UK retail parks
19 - Premium outlets
30
Value Retail - £4.1bn GAV
Europe’s leading operator of luxury outlet villages
Hammerson invested since 1988
Hammerson 40% ownership
180,000 m2
Growth through extensions to existing Villages
VIA Outlets - £1.0bn GAV
Launched in 2014
Partnership between Hammerson, APG, Value Retail and Meyer Bergman
Hammerson 47% ownership
240,000m2
Acquisition and turnaround strategy
Value Retail
Invested since 1998
Hammerson exposure : 40%
Leading operator of luxury Villages across Europe
[180,000]m2
Growth through extensions to existing Villages
VIA Outlets
Launched in 2014
Hammerson exposure : 47%
Partnership between Hammerson, APG, Value Retail and Meyer Bergman
[180,000]m2
Acquisition/turnaround strategy
31
Why do outlets exist?
Brands have surplus
stock and need an
efficient means to deal
with it that does not
compromise their
integrity or image
Image permission TBC
32
How does Value Retail service this need?
The Value Retail
Villages provide a high
quality sales
environment for goods
that are:
Authentic surplus stock
At least one year old
Same season
Sold at a 33% - 70%
discount to full price
Image permission TBC
Value Retail is Europe’s leading luxury outlet operator
33
Portfolio
9 Villages
€5.1bn value
Locations
Proximity to Europe’s wealthiest cities
Close to major tourist attractions
Total Catchment
163m residents within 120 minutes drive
100m tourists p.a. to cities served by Villages
The Collection
180,000m2 of gross lettable area
Over 1,000 boutiques
Source: Value Retail
Value Retail was one of the first operators in the European market. Its first centre, Bicester Village, near Oxford, England, opened in 1995
Categorisation of European outlet market
34
International fashion and luxury brands
Mainstream fashion brand outlets
Low-end discount outlets <€2,000
€2,000–€10,000
€30,000+ Value Retail
Incr
easi
ng s
ale
s den
sitie
s €
/sq m
VIA Outlets
The market can be broadly categorised by the customers it serves
What are the drivers of strong performance?
35 (1) Source: Global Blue
2016 Total European tax refunded sales by nationality(1)
Outlet channel continues to grow in popularity
China
East Asia
Middle East
Russia
India
USA
Other
-1%
+244%
+46%
-7%
+36%
+23%
Portfolio update: Premium outlets
Bicester– first concept store for Kering
Las Rozas – first store in Madrid
La Roca – first store in Spain
China
East Asia
Middle East
Russia
India
USA
Other
Breadth of international visitors
Growing attraction for retailers
Brand and retail management
Multi-phase extensions
Check how icons print against blue box
40%
23%
16%
4%
3%
1%
13%
La Vallée Village
Opened in October 2000
120 brands
21,000m² GLA
Excellent travel links, 35 minutes from Paris
Footfall 6 million
3rd most visited cultural and leisure site around Paris (after Disneyland Paris and Domaine de Versailles)
Visitors from 170 countries
36
04 O’Parinor
O’Parinor: a key retail destination in the north of Paris
• Opened in 1974
• O’Parinor is one of the 10 largest shopping centres in France
• Totalling 220 shops for 98,600 sqm
• Carrefour hypermarket of 30,000 sqm
• 12 MSUs : Primark, UGC, Toys‘R’us, Go Sport, Darty, Zara, H&M, Fnac, C&A, Koton, Kiabi Kids
• 5,200 car park spaces
• Extended in 2008 and 2014; fully refurbished in 2014
• Sale to NPS (Rockspring) of 75% of the shopping centre (2010)
• 13.5 million visits per year
• Turnover of €470 m (incl. VAT)
• Occupancy: 95%
• Rents passing : 6.58 million €/ an (with additional income : 6.76 million €) (1)
• Average rent: 374 € /m2
38 (1) As at 31 December 2016. Figure represents Hammerson share.
Key facts
Benefits from a large catchment and a strong local economy
39
Seine Saint Denis department
• 224,000 residents in primary catchment area
• 1.3 million residents in total catchment area
• 44% of population under 30
• 2nd economic hub in Seine Saint Denis department with 3,500 companies and a strong industrial base (L’Oreal)
O’Parinor accessibility
• Located 20 minutes from Paris
• 80% of the customers come by car
• 10km from Roissy CDG airport cluster and less than 3km from Paris-Le Bourget airport
• Strategic location at the intersection of A1 and A3 motorways
O’Parinor customer profile
40
Customer profile
• Family profile
− 1.6 children per family
− 49% of visitors are families
• 27% upper middle class groups
− Average monthly income per family €2,580
− Average spend per visit €37
• 97% of the visitors make a purchase
Age and gender distribution
0-20
20-24
25-34
35-44
45-54
55-64
Over 65 0-20 5% 20-24 11% 25-34 30% 35-44 26% 45-54 15% 55-64 7% Over 65 5%
Male
Female
Male 26% Female 74%
Notable tenants
41
• Homogenisation and redesign of the existing centre and extension
• Full renovation of ceiling and flooring
• Implementation of new signage
• Set up of new digital tools (directories, Clear Channel totems, IP network)
• Creation of seating areas in the mall
Interior redesign and refurbishment
42
Concept
Completed in March 2014
Exterior renovation and creation of storage units
43
Before
Concept
• New consistent façade design with wooden features
• Creation of retail and storage units on the former delivery way (behind the refurbished façade) totalling 1,000 m²
• Implementation of car park guidance system to ease car parking and improve circulation
Completed in October 2014
Upgrading the catering offer
44
Concept
• 2,000 m2 catering area in the extension part
• 10 restaurants
• Specific design for the zone
• Open 7 days a week and in the evening
Completed in October 2013
Introducing new brands to meet consumer demand
45
The Primark effect
• 5,550 m2 store
• 3rd store opening in France
• 1st store opening in Ile-de-France region
+30% increase in the shopping centre footfall in
first year following Primark opening
Opened March 2014
Enhancing the leisure offer
46
UCG Multiplex cinema
• 14-screen cinema
• 2,600 seats
• BREEAM Very Good
• Best opening for a UGC multiplex in France
955,000 tickets sold in 2016 vs. an
initial target of 750,000 tickets
Opened October 2014
Appendices
47
O’Parinor – Ground Floor
48
O’Parinor – 1st Floor
49
Disclaimer
This presentation contains certain statements that are neither financial results nor
other historical information. These statements are forward-looking in nature and
are subject to risks and uncertainties. Actual future results may differ materially
from those expressed or implied by these statements.
Many of these risks and uncertainties relate to factors that are beyond
Hammerson’s ability to control or estimate precisely, such as future market
conditions, currency fluctuations, the behaviour of other market participants, the
actions of governmental regulators and other risk factors such as the Company’s
ability to continue to obtain financing to meet its liquidity needs, changes in the
political, social or regulatory framework in which the Company operates or in
economic or technological trends or conditions, including inflation and consumer
confidence, on a global, national or regional basis.
Readers are cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date of this document. Hammerson does
not undertake any obligation to publicly release any revision to these forward-
looking statements to reflect events or circumstances after the date of these
materials. Information contained in this presentation relating to the company or its
share price, or the yield on its shares, should not be relied upon as a guide to
future performance.
50