Category: Real Estate

Retail News Asia is committed to providing both local and global retailers with the latest Real Estate news throughout the Asian market. This on a daily base.

  • RadioShack to auction brand name

    RadioShack to auction brand name

    Bankrupt electronics chain RadioShack is hoping to get $20 million for its brand in an auction scheduled for March 23.

    The move to split the brand from its other assets will allow a buyer to bid on the brand without being forced to buy store leases.

    The lead bidder is hedge fund Standard General LP, which is already RadioShack’s largest shareholder. The company has already committed to buying a many as 2000 of the chain’s 4000 store leases across the US.

    US Bankruptcy Judge Brendan Shannon in Delaware has approved the brand sale plan, with the lead bid set at $20 million.

    Standard General plans to save the RadioShack business by co-locating many stores with Sprint Corp, a wireless telco carrier.

    Meanwhile, video game retailer GameStop Corp has lodged a bid for some of the 4000 store leases, largely as a means to expand its retail footprint for its Spring Communications wireless unit.

  • SM to expand Savemore network

    SM to expand Savemore network

    The Philippines’ SM Retail plans to open 20 more Savemore supermarkets this year after reaching the 100 threshold last year.

    Savemore is a neighbourhood grocer format, typically about 1300 sqm and located in areas where there is little organised retail industry in place. In such neighbourhoods, most Filipinos shop in sari sari stores – small businesses selling groceries in single unit volumes, everything from shampoo to soft drinks, run from the front of family homes.

    Besides groceries, Savemore stores offer services such as Western Union, bill payments and Watsons pharmacy concessions.

    SM Retail says it will invest P1 billion (US$22.7 million) this year in building new Savemores.

    SM Supermarkets president Joey C. Mendoza told the Philippine Star that SM Group opened 20 Savemore stores last year as well.

    “Our Savemore is expanding aggressively. We’re now over 100 stores so that’s good. And we’re expanding our reach because of the positive reception,” he said.

  • Taiwan’s Eslite Spectrum store to open at HK’s City Plaza in 2016

    Taiwan’s Eslite Spectrum store to open at HK’s City Plaza in 2016

    Cityplaza is set to open Eslite Spectrum Hong Kong early next year, taking over two storeys of floor area spanning over 49,000 sq ft in the mall.

    The Taiwanese lifestyle bookstore is expected to enhance Cityplaza’s trade mix and quality retail offerings.

    Fiona Shiu, General Manager of Cityplaza, said hosting the largest Eslite Spectrum store on Hong Kong Island will expand the mall’s diversity and allow it to explore more possibilities for the city’s retail scene.

    Cityplaza completed a HKD100-million (USD12.8 million) facelift in 2014, which upgraded the mall’s facilities and introduced of over 30 stylish local and international retail brands.

    Eslite Spectrum opened its first Hong Kong store in Causeway Bay in 2012 and hopes that its new store in Cityplaza can continue more to bringing the energy of reading and cultural creativity to Hong Kong and integrate it into Hong Kongers’ daily lives.

    Recommended as “Asia’s Best” bookstore by Time magazine (Asia Edition), the bookstore has been lauded for its creative retail spaces, acting as a cultural hub with its offerings of a wide collection of books, staged exhibitions, live arts events, and exciting dining experiences for shoppers.

  • Platinum Mall parent in IPO

    Platinum Mall parent in IPO

    Platinum Group, the parent of the popular Platinum wholesale fashion mall  in Bangkok’s downtown Pratunam district, is to launch an IPO.

    The group plans to raise 8 billion baht (US$247 million) through the issue of 700 million new shares. A book-building process is underway this week, which will be followed by a distribution in mid-March.

    Platinum Group president Somboon Wongrasamee says the company plans to use the funds to refinance a new project The Market by Platinum, under construction in Ratchadamri and scheduled to open in 2017. Three times the size of Platinum Mall, the centre is expected to boost the group’s income by 1 billion baht ($31 million) annually when complete.

    Further funds will be dedicated to construction of a skywalk connecting the luxury Gaysorn shopping centre with Platinum Mall and construction of a hotel in Koh Samui.

    Wongrasamee says the mall had a unique place in Thailand’s retail landscape as it attracted both local consumers and tourists.

    “There are not many wholesale operators in Thailand, so the company will expand to upcountry branches to take advantage of long-term market growth opportunities,” he told the Bangkok Post in a recent interview.

  • PE boost for Indonesian malls

    PE boost for Indonesian malls

    A US-based private equity investor has committed up to US$200 million in a joint venture to roll out shopping malls in Indonesia.

    Nirvana Development, which describes itself as “an emerging real estate developer and operator” in Indonesia, has formed a joint venture with an affiliate of Warburg Pincus, a leading global private equity firm focused on growth investing.

    WP, will commit US$125 million initially with an option to invest up to an additional US$75 million in the JV, which will build and develop a “best-in-class retail platform in Indonesia”.

    In a statement, Nirvana said the venture will focus on developing hypermarket-anchored shopping malls across second- and third-tier cities in Indonesia to capitalise on the growth opportunities coming from rapid urbanisation, emerging consumption and outsized economic growth in these areas.

    “This strategic partnership is founded on a common vision to expand Nirvana’s operations to benefit from one of the world’s fastest growing domestic retail sectors in a time when it is still vastly under-penetrated across the archipelago. The venture will be seeded with four operating assets and several pipeline projects, which are currently under development.”

    The long-term vision is to create one of the leading retail platforms in Indonesia with institutional-grade malls in cities with sizable population centers and growing disposable incomes.

    “With this plan, we will seek to enhance and expand our retail relationships to further deliver quality service and growth to our tenants and stakeholders,” said Wilson Effendy, Nirvana’s CEO.

    “As we seek to scale quickly over the next few years, we look forward to benefiting from the wealth of experience and solid track record of the Warburg Pincus team in building out retail platforms globally and in Asia.”

    Jeffrey Perlman, Warburg Pincus MD, added: “With a rapidly expanding middle class and a nascent modern retail sector outside of Jakarta, there is a meaningful opportunity to contribute to Indonesia’s consumption transformation. We are confident Nirvana’s strong local sector knowledge and operational experience, together with Warburg Pincus’ proven ability to assist our partners in realising their full potential, will enable us to benefit from Indonesia’s long-term economic growth and emerging middle class.

    “Under the leadership of Mr Effendy and his strong management team, the new venture is poised to become one of the pre-eminent retail platforms in Indonesia.”

    Subject to shareholder approval and the satisfaction of certain closing conditions, the parties expect the transaction to close at the beginning of the second quarter of 2015.

    Nirvana Development, headquartered in Jakarta, has business activities spanning shopping centers, real estate, hotels and other sectors. The company’s key projects consist of Cirebon Super Block in Cirebon, The Park Solo in Solo, Borneo City Sampit Mall, Borneo Mall in Pangkalan Bun and Borneo City Ketapang Mall in Kalimantan.

    Warburg Pincus has been active in Asia since 1994. Internationally, it has a proven track record as an investor in the consumer and retail sector, including retail brands Intime Department Store, Red Star Macalline, Mattel, Neiman Marcus, and Poundland.

    Warburg Pincus’ portion of the equity for the Venture will come from Warburg Pincus Private Equity XI, which includes the consumer and retail investments in CAR Inc, China Kidswant and Vincom Retail.

  • Inside Grand Central Jakarta

    Inside Grand Central Jakarta

    Thailand-based Central Department Store Group has opened its first department store in the Indonesian capital Jakarta.

    With 9.5 million inhabitants, Jakarta is the largest city in Southeast Asia and Central’s commitment to the city reflects the company’s belief that department stores, executed well, have a strong future in retail.

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    “I believe in the department store industry,” explains Central’s president, Yuwadee Chirathivat. “But the stores must be exciting and innovative.”

    The 17,000sqm store marks the continuation of a successful partnership with German architects Blocher Blocher Partners (BBP) dating back 13 years. BBP has shared with Inside Retail Asia the challenges and execution of the new store’s design.

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    Like most department stores, the ground floor is anchored by cosmetics and women‘s designer fashion departments – two premium worlds, joined by luxurious shades of gold.

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    “In the designer department, the brand highlights are enclosed by a wire-mesh structure interwoven with elaborate floral patterns. In this way, a kind of house-in-house is created; a principle that is repeated on all storeys,” explain partners Dieter Blocher, Wolfgang Mairinger, Jürgen Gaiser, Angela Kreutz and Anja Pangerl, who worked on the project.

    In the women‘s fashion world on the first floor, an ornamental metal construction forms the setting for the Who-is-Who of the Southeast Asian designer scene.

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    “The leitmotif of the surrounding sales floor: a modern interpretation of cassette walls, conveying timeless elegance and a contemporary sense of class. At times, in the classic look of dark turquoise, sometimes entirely in a modern mosaic style.

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    “Here, too, slatted panels on the ceiling indicate the transition to the next department, the shoe and bag division. An eye-catcher: polygonal ceiling elements continuing seamlessly on the rear walls. Harmonising with the polygonal, high-gloss white furniture and pedestals, which flatter the premium merchandise with their sculpture-like appearance.

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    “On the second floor, the jeans/unisex and men’s department meet each other – two young, rugged looks. Tiles, raw wood, wallpaper and dark expanded metal in the jeans division blending with fishbone parquet and wooden ceiling slats in the central men’s casual area.

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    In the adjoining men’s business department, concrete walls alternate with metal curtains. Here, the house-in-house is designed as a gently curving diamond-shaped structure in wood, revealing at the core changing rooms, clad with clinker bricks.

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    “Things get really colourful in the children’s department on the third floor. With yellow walls, colourful glass elements set into sloping furniture, butterfly appliqués and abstract animals. As a contrast, the home division presents itself as deliberately reserved – with an interplay of light and dark accents.”

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  • Giant mall for CapitaMalls’ Suzhou Center

    Giant mall for CapitaMalls’ Suzhou Center

    A new development in Suzhou, China, will feature a world-record setting roof structure over a 340,000sqm, seven story retail complex

    Suzhou Center, developed by CapitaMalls Asia (CMA) and Suzhou Industrial Park Jinji Lake Urban Development was unveiled this month, with Benoy named as the architect and interior designer behind the development’s major retail component. The shopping mall will be covered by the world’s largest monocoque roof structure, spanning over 36,000sqm and making Suzhou Center the city’s most eye-catching landmark.

    Suzhou Center is a large-scale, high-end integrated development in the heart of the western CBD of Suzhou Industrial Park (SIP). Planned on a 16 ha site along the bank of Jinji Lake, the broader scheme comprises retail, commercial, residential and a hotel, as well as entertainment and cultural spaces. Considered the world’s largest, a free-form monocoque roof structure

    Benoy director Winnie Tsang said the design has “pushed many boundaries” and will no doubt be “a leading international example of architectural innovation”.

    “Benoy’s design for the roof was inspired by the mythical Chinese phoenix,” explained Winnie. “We envisaged the structure as a bird resting above an oasis with the striking curved architecture mimicking its wings. To turn this concept into a viable and deliverable structure has taken an unwavering commitment by our Team and it is incredibly rewarding to see us making history as we go.”

    The retail mall will be spread across three interconnected buildings. Alongside luxury and high-street retailers, children’s attractions, designer studios and a gourmet supermarket, there will also be an Imax Cineplex and an Olympic-size ice rink.

    Another prominent feature in Benoy’s design is ‘Water’, taking inspiration from the neighbouring Jinji Lake scenery. Landscaped bridges extend from the retail development to the lakefront to capitalise on the proximity to the natural site. Terraces overlooking the water have created additional civic spaces within the retail podium and a cascading ‘Water curtain’ spanning 50 metres pays homage to the local environment.

    With its integrated traffic network and seamless transport accessibility to Suzhou’s MRT network, the development will serve a catchment of 13 million Greater Suzhou residents and over 8 million tourists to the SIP annually. Four modern Grade A office towers, two world-class luxury serviced apartment towers and the W Suzhou hotel tower complete the mix.

    Suzhou Center is due to be completed in 2017.

  • Crisis freezes Russian malls

    Crisis freezes Russian malls

    Russian property developers had planned construction of 990,000 sqm of new mall space in 2015.

    But property specialist Jones Lang LaSalle predicts the brakes will be put on as much as 400,000sqm of new Russian malls space, in the wake of the rouble’s collapse and the nation’s worsening economic plight.

    The nation’s growing economic crisis is seeing consumers cut spending and restricting access to finance.

    “Everything depends on how many planned projects have already received financing,” said Olesya Dzyuba, deputy head of research at JLL, in the report.

    Russia’s Central Bank has raised the base interest rate to 15 per cent in a bid to prop up the rouble, leaving real estate developers facing borrowing rates as high as 20 per cent, severely impacting on the viability of retail or commercial developments, especially when consumers are cutting back on spending.

    Compounding the problem, foreign retailers are finding Russia a far less attractive market given the rouble’s value has slumped 50 per cent in around six months, reducing demand for space.

    Finnish department store Stockmann closed 16 fashion outlets in Russia last year and international brands like Adidas and Zara have slowed store roll-outs.

    According to JLL, Russian mall rental rates slumped 20 per cent last year, to reach an average range of between US$400 and $1450 per sqm.

  • Savills to tenant Carrefour China

    Savills to tenant Carrefour China

    Savills has signed an agreement with Carrefour to sign up tenants for its new Siyuan Plaza, Carrefour’s first shopping centre in China.

    Siyuan Plaza is located at Siyuan bridge in the Chaoyang district, in the core of Wangjing commercial region. With a total leasable area of 35,000 sqm, it includes one underground floor and three floors above ground. It will integrate about 80 lifestyle stores, one food court, 20 restaurants, an 11,600 sqm Carrefour supermarket and a 5000 sqm Decathlon sports retail outlet.

    Brands signed so far include C&A, Uniqlo, La Chapelle, Starbucks, Burger King, Baskin Robbins, Papa Johns, and Xiabu Xiabu.

  • Giant Matahari Mall online planned

    Giant Matahari Mall online planned

    Indonesian industrial conglomerate Lippo Group is to invest US$500 million creating “the Alibaba of Indonesia”.

    The Indonesian mall will bear the Matahari department store brand name, MatahariMall replicating and expanding the nation’s largest department store’s bricks and mortar offer online.

    Lippo Group is one of Indonesia’s largest and diversified corporations, which owns Matahari hypermarkets, department stores and some 60 shopping centres. It says it will invest the internet funds into the Matahari Mall online over a two to three year period as it strives to create the nation’s largest eCommerce site, turning over US$1 billion annually.

    Lippo Group representative John Riady described eCommerce in southeast Asia as “a US$100 billion opportunity”.

    “We want to become ‘the Alibaba of Indonesia’,” he told a media briefing.

    “Indonesia is the last remaining, large underpenetrated eCommerce market in Asia. MatahariMall is the single largest eCommerce opportunity today.

    “Our vision is to build the most powerful ecosystem that brings together buyers and sellers to do business anytime and anywhere.”

    Five years from now, Lippo wants to achieve US$25 billion in sales from its Matahari operations, 80 per cent of that from its bricks & mortar stores, 20 per cent online.

    Tech In Asia reports that prior to Lippo’s announcement the largest single commitment to eCommerce in Indonesia was $100 million from SoftBank and Sequoia Capital into Tokopedia.

    Lippo is effectively putting MatahariMall will into head-on competition with Rocket Internet’s Lazada, southeast Asia’s strongest online retailer.

    MatahariMall will sell goods spanning the fashion, beauty, electronics, home, groceries, books and entertainment categories, and more. Customers will be able to purchase online and collect in a Matahari store.

    Matahari Department Stores CEO Michael Remsen says Indonesian eCommerce will grow 10-fold over the next five years.

    “Together with MatahariMall, we are committed to the future of ecommerce. All of our suppliers and partners are 100 per cent behind us,” he said.

    The site will go live in March.

  • Moratorium on new malls leads to retail space shortage in Indonesia

    Moratorium on new malls leads to retail space shortage in Indonesia

    The retail space market in Jakarta anticipates limited future supply due to a moratorium policy for new mall development, a global property consultant company Savills PCI Research said in a report released on Wednesday.

    The capital city put in place the mall development moratorium in late 2011 under then governor Fauzi Bowo, after the city experienced a boom in mall construction, triggering concerns that it may lead to deteriorating quality of life, through greater traffic jams and less public space.

    In September 2013, Fauzi’s successor Joko Widodo extended the moratorium, but the current governor, Basuki Tjahaja Purnama, has not outright banned mall developments, saying as long as the new development does not exacerbate traffic congestion, he will allow it to go ahead.

  • Thai retail leader Central Group to invest USD1.14b in 2015

    Thai retail leader Central Group to invest USD1.14b in 2015

    Thailand’s largest retail conglomerate, Central Group, plans to invest USD1.14 billion this year, expanding at home and in Southeast Asian neighbours by opening new malls to tap into cross-border trade and lining up acquisitions.

    Controlled by Thailand’s richest family, the unlisted firm told reporters at a news conference on Monday it plans to accelerate revenue growth to 15 percent this year, to THB287 billion (USD8.8 billion), compared with 6.6 percent growth in 2014.

    Central Group is among a group of major Thai companies looking to buy more international assets, especially in Vietnam, Indonesia and Malaysia.

  • Struggling Vietnam mall offers free space

    Struggling Vietnam mall offers free space

    Retailers are being offered free rent at a Vietnam mall to help the struggling landlord fill space.

    The Hoa Binh Company says it has “reserved” 25,000sqm of space in its Hoa Binh Green City shopping mall in Hanoi, Vietnam’s capital, to lease free for Vietnamese retailers.

    But the deal comes with a catch: the retailers must specialise in trading Vietnamese goods and have a profit margin of no more than 15 per cent. And foreign retailers are not eligible.

    Local players in the Vietnam mall industry are struggling to find tenants for the fast-growing ranks of modern format shopping centres, while more experienced international players, like Japan’s Aeon, are fully tenanted and trading well.

    The Hoa Binh Green City centre is on Minh Khai St in Hanoi. Qualifying retailers are being offered lease contracts ranging from one to five years.

    Nguyen Huu Duong, general director of Hoa Binh Company, told VietNamNet Bridge

    the company wants to help Vietnamese businesses boost sales of their products before foreign retailers have easier access to the Vietnam market through the Asian Economic Community alliance.

    One retailer considering the opportunity said if stores could get space for free they could afford to lower their prices and compete better with goods imported from China or Thailand.

    VietNamNet Bridge quoted Dr Pham Tat Thang, “a renowned trade expert” praising the proposal, saying it would “benefit consumers, manufacturers and the developer as well”.

    He said it is difficult for mall developers to find tenants right now because the real estate market remains “stagnant and gloomy and the economy (is) still sluggish”.

    The Hoa Binh Company believes that offering retailers free space will attract more shoppers to the centre, and encourage people to consider buying apartments constructed above the shopping mall.

  • Philippines’ Robinsons to put up 7 new malls

    Philippines’ Robinsons to put up 7 new malls

    Robinsons Land Corp. (RLC), the property development arm of tycoon John Gokongwei, is opening more shopping centers over the next two years as it intends to retain its foothold as among the top mall developers in the country.

    RLC said it intends to put up seven new shopping centers and expand three existing malls in the next two years.

  • 25 new Bangkok malls set for 2015

    25 new Bangkok malls set for 2015

    At least 28 new community malls will be opened in Bangkok and suburban areas in 2015-16 in response to growing urbanisation and changing lifestyles.

    Community malls accounted for the biggest growth in the retail sector last year. Over a half or 147,000 square metres, out of the total new retail space of 282,600 square metres, came from community malls.

    Surachet Kongcheep, associate director of Colliers International (Thailand) Co, said 25 new community malls with over 320,000 sqm were slated to open this year. Among them, 14 projects are in western Bangkok including Kalapapruek, Ratchapruek and Phetkasem Soi 48