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Click to edit Master title style Broll Property Group (Pty) Ltd, established in 1975 is a multi-disciplinary property services provider operating throughout sub-Saharan Africa through various local partnerships. Since 2004 with our CBRE affiliate status we offer a global vision with local talent to produce effective property solutions.
Broll South Africa
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Click to edit Master title style
• No-frills gyms, home improvement centres and motor-related tenants have been active in acquisition of sites
• Increased convenience retail with forecourt offerings from retailers such as Woolworths, Thrupps
• Struggling retail centres converted to Chinese-owned malls
• Furniture stores are under increasing pressure • Turnover only deals at struggling centres • Discount Fashion (PQ, Mad Max, Jam, Fashion
Fusion)
What Do We See?
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• Increased enquiries from Frozen yoghurt, Chesa Nyama, Fish n Chip concepts (saturation)
• Education brands such as Kumon and Master Maths are moving into previously difficult to let retail space
• Growing online retail market • CBD retail – National Retailers • Discount Department stores (Westpack, Crazy
Plastics, Hanson Home) • Outlet • Banks – Space rationalization
What Do We See?
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• Supermarket giants fight for market share • Row over lease exclusivity clauses driven by the
spending slowdown • MASSMART filed complaint with the
Competition Commission regarding its fresh food business, Foodco, at Game stores in malls which is being obstructed by Shoprite and Pick n Pay
Increased Competition
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• Zara has about 10 local stores and Cotton On over 110 stores in 3 years
• H&M, Forever 21, Edcon introducing more international brands
• Brands offer something different, providing consumers (and Landlords) with more choice
• Partnerships, Licence Agreements, Master Franchise agreements
• Size Constraints • Category saturation
International Retailers
Click to edit Master title style International Retailers SA vs The Globe
Note : 334 leading international brand retailers were identified as representatives of the global retail community
SA Rank 2014 53rd out of 61 countries with 16% presence Up from 14% in 2013
Source : CBRE
Click to edit Master title style International Retailers SA Cities vs Global Cities
SA Cities Rank 2014 Out of 189 countries
Source : CBRE
Click to edit Master title style Some International Retailers in SA
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Retail Space
Click to edit Master title style Retail Space in Perspective
Source : SACSC & StatsSA
Click to edit Master title style Retail Space per Province (m²)
1,052,419
913,095 1,333,037
761,960 2,915,987
198,477
1,119,433
3,189,124
9,285,676
Total 20,769,208
Source : SACSC
Click to edit Master title style Retail Space per Type of Centre (m²)
Source : SACSC
Super Regional > 100,000m²Regional 50,000 - 99,999m²Small Regional 25,000 - 49,999m²Community 12,000 - 24,999m²Neighbourhood and Local Convenience < 12,000m²
Click to edit Master title style Retail Space (Building Plans Passed and Buildings Completed)
Building plans passed July 2013 – June 2014 = 899,419m² potentially on the market within next 6 to 18 months Buildings completed = 520,497m²
Source : StatsSA
Click to edit Master title style Average Completion of Retail Space (Per Annum July 1999 - June 2014)
Recession
Source : Broll
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Click to edit Master title style Retail Performance
Source : IPD
Click to edit Master title style Gross Rent (R/m²)
Source : Broll
Click to edit Master title style Rent to Turnover Ratio
Source : Broll
Click to edit Master title style Escalations
Outlook : Escalations are under pressure due to costs rising faster than the inflation rate
Source : Broll
Click to edit Master title style Average Trading Density per Province City vs Decentralised
Source : Broll
Click to edit Master title style Average Trading Density City vs Decentralised
Source : Broll
• Decentralised centres perform average in all categories with the exception health and food services
• In general larger cities outperform smaller cities
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• Apparel – Small regional and value centres top performers
• Beauty – Not performing well in neighbourhood centres
• Health – Good trading in most types of centres with lowest trading in small
regional centres • Homeware
– Best performance in community centres
Average Trading Density Type of Centre
Source : Broll
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• Food services – Regional centres : a social gathering place – Value centres : purchasing of value goods not so much social
experience
• Groceries – Convenience and neighbourhood centres due to size and
convenience – Regional more for social experience
Average Trading Density Food Services vs Groceries
Source : Broll
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• On average cash based stores trade better than account base stores
• Cash based stores – On average perform best in value centres – Highest trading density in neighbourhood centres
• Account base stores – On average perform best and have highest trading
density in neighbourhood centres
Apparel : Account vs Cash (Average Trading Density)
Source : Broll
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Click to edit Master title style Mall of Africa Largest single retail first phase ever constructed in sub-Saharan Africa Situated in a $2bn mixed-use precinct; retail mall around 130,000 m2
Click to edit Master title style Mall of Africa Trading Area
Source : Urban Studies
Click to edit Master title style Urban Regeneration Maboneng Precinct
• Urban regeneration project • Privately developed urban neighbourhood on eastern side of
Johannesburg CBD • Home to independent retailers (street level), restaurants and
entertainment venues • Includes loft apartments, offices, hotel, a museum and creative
factory spaces
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• CID initiative played a major role in the retail market, shop owners re-doing shop fronts, extending trading hours and providing outdoor eating areas.
• Retail market has seen a number of flagship stores and new brands eg Virgin Unite, Puma, Design of Sweden
Urban Regeneration Braamfontein CID
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• Started as a cultural precinct which includes the Market Theatre and Museum Africa
• Number of entertainment facilities surrounding Mary Fitzgerald Square
• Home to Newtown Junction mixed-use development (36,000m² shopping centre, 40,000m² offices, hotel and gym)
Urban Regeneration Newtown Cultural Precinct
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Recent Consumer Survey report indicated that 95% of people still prefer to go to a shop
Current Shopper Behaviour
Source : Broll
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• Survey showed that 73% of shoppers will either increase visit to shop or expect no change
• Shoppers still prefer the social behaviour of shopping
• Shoppers expect to go more online
Expected Shopping Behaviour
Source : Broll
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• Logistics is an issue both in terms of distance and infrastructure
• Lack of suitable warehouse space • Quality of local logistic companies
Online Shopping
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The African Picture
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PERCEPTION ABOUT AFRICA RETAIL IS CHANGING
Click to edit Master title style Our Retail Portfolio Property Management
Total 3,675,333 m²of a total 6,174,432 m² 291retail centre’s 60% of total pm is retail
West Africa 133,445m² 9 retail centre’s
SADC 3,338,888m² 275 retailcentre’s
East Africa 203 000m² 7 retail centre’s
m2
Click to edit Master title style Our Retail Portfolio Leasing and Projects Over 1,099,748 m² active retail projects due for completion within next 24 months Additional projects under investigation -500 000m² Total number of projects – 53 65% in number of projects outside SA Geographic spread In GLA -28% in West Africa -44% in SADAC -28% IN East Africa
West Africa 316, 000 m² 23 projects Gla from 8 000 m² to 27 000 m² Average line shop rental $ 55-65 m² Retailers -Master Franchise -Middle East emerging -European brands -Local retailers strengthening
Ave
SADC 482,748 m² 19 projects Gla from 8 000 m² to 130 000 m² Average line shop rental $ 55-65 m² - Angola ; SA $ 35-45m² in regional mall Retailers -Master Franchise -Middle East retailers in Angola, limited interest in SA -Entrance of international luxury brands -Strong SA local retailers expanding
East Africa 301,000m² 11 projects Gla from 13 000 m² to 49 000 m² Average line shop rental $ 25-30 m² Retailers - Strong established
local retail market - Master Franchise - Middle East
Retailers - SA retailers interest - Creating a retail
fund
Click to edit Master title style Two Rivers , Nairobi , Kenya Largest Mixed Use Development under construction in East Africa 49000 m² retail 18000m² office plus some residential Broll awarded management and involved with leasing
Click to edit Master title style West Hill Shopping Centre, Accra ,Ghana Largest West African Shopping Centre 26,800m² Broll leased and to manage – opens Oct 2014
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Mundial Shopping Centre , Luanda , Angola Largest centre under construction in Angola -50,000m² Broll leasing mandate and in discussions to manage
Click to edit Master title style Angola
Regional centre - enclosed GLA = 50,000m² Anchor tenants
Belas Shopping Centre - extension GLA = 16,000m² Anchor tenant
or
Click to edit Master title style Angola
Small regional centre - enclosed GLA = 26,000m² Anchor tenant
Community centre - enclosed GLA = 15,000m² Anchor tenant
Click to edit Master title style Namibia
Werhill extension – enclosed mall GLA = 11,000m² mall will be 40 000 sqm
The Grove – enclosed mall ;largest outside SA GLA = 54,939m² Anchor tenant
Click to edit Master title style Ghana
Small regional centre - enclosed GLA = 26,800m²
The Exchange – enclosed mall GLA = 11,000m² Anchor tenant
Click to edit Master title style Nigeria
Jabi Lake Abuja - enclosed GLA = 26,000m² Anchor tenants
The Palms Extension,Lagos GLA = 20,000m² Anchor tenants
Click to edit Master title style Nigeria
Ado Bayero ,Kano - enclosed GLA = 24,000m² Anchor tenants
Airport Mall, Lagos - enclosed GLA = 18,000m² Anchor tenant
Click to edit Master title style Nigeria
Festac Mall, Lagos - enclosed GLA = 16,000m² Anchor tenant
Port Harcourt Mall, Port Harcourt GLA = 16,000m² Anchor tenant
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GLA = 13,800m² Delta City & Osapa Neighbourhood centre - enclosed GLA = 10,400m² Anchor tenant
Click to edit Master title style Kenya
Small regional centre - enclosed GLA = 49,000m²- Broll to manage Opens March 2016
Garden City Mall - enclosed & mixed use GLA = 47,000m² - Broll to manage Opens Oct 2015
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The Hub – enclosed mall GLA = 29,000m² - Broll to manage Open first quarter 2015
Buffalo Mall – enclosed mall
GLA = 20,000m² - Broll to manage Open phase 1 Nov 2014
Click to edit Master title style Nigeria : International Tenants CURRENT BRANDS* FORTHCOMING BRANDS
Click to edit Master title style Ghana : International Tenants
Click to edit Master title style Angola : International Tenants
Click to edit Master title style Kenya : International Tenants
