CREATING FAVOURITE MEETING PLACES - Corio

CREATING
FAVOURITE
MEETING
PLACES
The THE breakThrough
BREAKTHROUGH
of OF The THE non-Shopping
NON-SHOPPING
experience
EXPERIENCE

The breakThrough of The non-Shopping
experience in The nexT DecaDe
THe reTaIl landSCape
IS SeT TO CHange radI-
Cally Over THe nexT
deCade. COrIO’S SuC-
CeSSFul CenTreS are
pOISed TO beCOme
plaCeS WHere peOple
enjOy SpendIng THeIr
TIme raTHer THan SImply
SHOppIng, SayS CeO
gerard grOener.
Corio has always been very skilful at signalling
where the best opportunities are when it
comes to cutting edge supply and demand in
the european property market. That is one reason
why improving the ‘non-shopping experience’
in our centres is a key aim.
‘That is, of course, essential in determining
which shopping centres are going to be
successful in the future: if you want to win
customer loyalty, you have to do more than
simply offer a wide range of quality shops in
attractive surroundings. The most successful
centres are the ones which are Favourite
meeting places.
January
Sale of bordeaux megastore in
France for H 67.3 million.
perforMance highlighTS 2010
Total portfolio
under management H 9.9 bn
– of which pipeline H 3 bn
number of visitors 400 million
retail contracts 6,000
leasable area retail 1.7 million m²
Occupancy retail 96.2%
net rental income H 386.8 million
dividend per share H 2.69
We want to lead the way in developing
such favourite places. In ten years time, a
successful shopping centre will be a place
where you can experience a wide range of
activities: you can have a meal or a drink with
friends, go to the cinema or a concert, but
also visit a doctor or attend a fitness class,
work or just hang around. In other words,
the shopping centre becomes a place at
the heart of the community, where events
become a regular thing rather than the
exception and where retailers keep on top
of the trends and continuously update their
products.
March
acquisition of le vele on Sardinia.
acquisition of an operational
portfolio of four shopping centres
and five development projects in
germany, Spain and portugal.
May
acquisition of 50% of porta di
roma shopping centre in rome in
Italy for H 220 million. assignment
of bbb+ rating by S&p and
in june baa1 by moody’s.
Our success in the next ten years will depend
on how well we respond to – and anticipate –
consumers’ changing demands. I am certain
sustainability will increase in importance and
social media will influence parts of our lives
which we cannot yet grasp.
Our shopping centres will become much more
interactive when it comes to communication
between ourselves and consumers. as a
hands-on manager, we are well-placed to help
retailers direct these developments. I foresee
a situation in which less than half the units in
our centres are traditional shops. The others
will be distinctly different.
Within five years people will no longer leave
their homes to buy all the things they need.
If they do go out, it will be to spend time at a
special place in an attractive environment,
where they feel safe and where they can have
positive experıences, meet friends and have
fun.
every day items, like socks or a pair of trousers,
will be bought on the internet and homedelivered.
but new products will still be sold in
shops and the challenge for retailers will be to
make sure they continually offer new products.
When it comes to attractive locations, cities
are where we see the best opportunities for
Corio to grow. Our focus remains on downtown
shopping centres and places where people
congregate in large numbers.
That means the choice of city is more
auguST
a H 250 million eurobond issue is
placed with a single investor.
The Corio management board. left to right: Chairman and CeO gerard groener,
CFO ben van der Klift, COO Francine Zijlstra, CdO and CeO Corio France Frédéric Fontaine.
important than the country itself. Cities are
the place to be. For the first time there are
more people living in cities than outside – a
figure which will increase to 75% within 10
years. However, given that the rules on taxes,
zoning and building permits are different in
every country, we will continue to organise our
management on a country level. That means
our six core home markets are run by our business
units using local expertise.
We need to do it ourselves if we want to
achieve our strategic aims. It is crucial to be
close to consumers and to understand their
needs. That is why we have organised all the
activities in the real estate value chain vertically.
To make a profit, we need critical mass
on a country level and we have achieved this
in all of our core markets. Size is not an aim in
SepTeMber
Corio is included in the dow
jones Sustainability Index
and advanced Sustainable
performance Indices.
itself, but it does matter. If you want to run an
effective marketing campaign for a shopping
centre, you need to be dominant in the catchment
area. This creates a range of opportunities
to expand your market share, by making
the centre more commercial, by redevelopment
or expansion. We develop centres which
can be quickly adapted to change. Consumer
preferences are changing more quickly than
ever and anticipating these changes is key.
That is why the management, the marketing
and the leasing of our shopping centres are
carried out in-house. We see this as the only
way to create the flexibility we need to adapt.
Flexibility is also at the heart of the way we
have organised our financing, with fixed and
floating debt and well-balanced maturities
ocTober
First public H 500 million
eurobond is placed.
Investor Split Type
Private banking
Pension funds
Other
Insurance
Banks
Asset Managers
noveMber
Opening of anatolium shopping
centre in bursa in Turkey.
from a variety of sources. This diversified and
solid capital base means we have room to
manoeuvre when opportunities arise. This
strength is reflected in the geographical mix
of our portfolio: mature markets currently
account for 85% of our turnover, enhanced
by up to a maximum of 20% exposure to
emerging economies. Our operational qualities
mean we can run our shopping centres
as profitably as possible. Strong cooperation
between centre management, leasing and
design and development guarantees that we
maximise value and can seize the opportunities
that arise. This requires in-depth research
into consumers’ needs, so we can signal
trends and opportunities at an early stage.
In turn, that means we can expand our activities
and realise new attractive centres.’
DeceMber
acquisition of palazzo del lavoro
development project in Turin,
Italy. In 2010 Corio sold a number
of properties with a total value of
H 236.3 million.

froM Turin To berlin To uTrechT:
iconic proJecTS in The pipeline
Corio’s commitment to creating
Favourite meeting places is highlighted
by a number of exciting new projects.
despite the limited availability of prime retail
properties with dominant positions in Corio’s
highly competitive home markets, as of 31
december 2010, there were 34 (re)development
projects in Corio’s pipeline.
In 2010 Corio created a new management
board position, that of Chief development
Officer, and a new virtual development Office
organisation. Frédéric Fontaine, CeO of
Corio France, was appointed the company’s
first CdO. as a board member since 2006,
mr Fontaine has overseen the most important
new developments and redevelopments which
the company has undertaken.
Corio started a number of unique projects in
2010. For example, the moulin de nailloux
project in Toulouse will be the first factory outlet
centre in the south of France. Corio bought
maremagnum shopping centre in barcelona
in 2006 and is now turning the top floor into
a lively mix of retail and some of the city’s top
restaurants. The Tarsu project in the city of
Tarsus will be the only shopping centre in the
city, and is the first development project in
Turkey to be fully under Corio control. and, of
course, the Hoog Catharijne shopping centre
in utrecht is ‘the start of a new beginning for
PIPELINE pipeline SpreaD SPREAD
the area’, says Fontaine. If these projects are
unique, a number of truly iconic developments
are poised to start. palazzo del lavoro in Turin
involves the redevelopment of a stunning city
centre building while in the german capital,
boulevard berlin will become a superb regional
shopping centre linked to the best shopping
street in the south of the city. In rotterdam,
the markthal project, a magnificent arched
building with a retail and residential mix, is a
truly iconic project which will become known
all over europe. In all, these projects will contribute
greatly to the company’s results, says
Fontaine. ‘We do this by giving optimal facili- Netherlands o netherlands 34% 34%
ties to our tenants. and we make them happy France o France 4% 4%
by bringing in as many visitors as possible.’ Italy o 30% Italy 30%
Spain 1%
Top 10 coMMiTTeD pipeline proJecTS Germany 26%
Turkey 5%
o Spain 1%
o germany 26%
o Turkey 5%
proJecT ToTal M² on coMpleTion Type ToT.al inveSTMenT (x L M)
1. boulevard berlin berlin germany 80,000 development 382.4
2. marghera venice Italy 31,380 development 146.0
3. City plaza nieuwegein netherlands 33,000 redevelopment 118.7
4. Königsgalerie duisburg germany 17,856 redevelopment 74.9
5. moulin de nailloux Toulouse France 22,129 development 59.0
6. arneken galerie Hildesheim germany 27,204 development 56.7
7. Tarsu Tarsus Turkey 27,600 development 54.2
8. globo 3 busnago Italy 8,364 extension 51.7
9. markthal rotterdam netherlands 11,345 development 45.5
10. Stadsplein Spijkenisse netherlands 11,920 development 38.0
breaThing new life inTo an hiSToric builDing
palazzo Del lavoro is a splendid
building with adjacent land in
south eastern Turin which is being
redeveloped into a unique and
innovative shopping centre with a
total gla of 28,000 m².
This prestige project fits very well
with Corio’s strategy to create
Favourite meeting places as well
as redevelop an urban historic
monument with high visibility.
The palazzo del lavoro was
built in 1973, hoog caThariJne
was one of europe’s shopping
mall pioneers, but 30 years
boulevarD berlin will not only
be the biggest shopping centre
in the german operation, but is
currently also the biggest centre
in Corio’s total portfolio in terms
of value. The project itself is a
state-of-the-art retail development
on the Schloßstraße, the
main retail high street in south
western berlin. The tenants, the
location and design will add up to
make boulevard berlin the most
appealing shopping centre in the
region. ‘boulevard berlin will not
inaugurated in 1961 to stage
an international exhibition
celebrating the centenary of the
unification of Italy and has since
then been used by the university.
It is situated in the heart of a
mainly residential area, built in
the 1970s when Turin was at its
industrial height.
‘Corio will be able to give the city
back this magnificent building
with new features involving
retail, exhibitions, events and
later was in need of a complete
overhaul. ‘We are very pleased to
have been able to start redevel-
be an ordinary shopping centre,’
says Herbert dubbelink, Head
developments at Corio deutschland.
‘The boulevard itself, a
public street to be covered over
with glass, will retain the inner
city atmosphere. The boulevard,
which is 50 metres wide, will
connect the Schloßstraße with
the park behind it, where there is
always a lot going on, especially
in good weather. So boulevard
berlin offers a combination of
retail and leisure experiences.’
education, using the experience
gained with Favourite meeting
place management at Shopville
new beginning for european pioneer
opment. It is the start of a new
beginning for Hoog Catharijne,’
says Chief development Officer
Frédéric Fontaine.
Hoog Catharijne is the geographic
axis between the old
city centre and utrecht’s Central
Station, close to the vredenburg
concert hall and a major cinema
complex. at least 26 million
people walk into the shopping
centre every year, and that will
only increase when the redevelopment
of the railway station at
preSTige proJecT in a new porTfolio
le gru and Campania,’ says
gino antonacci, Chief Operating
Officer of Corio Italia.
its heart is completed, Fontaine
points out. Corio’s strategy is
based on getting people to spend
time in the centre, rather than
rush through to catch a train.
So the development plan focuses
on creating calm and social
cohesion in the heart of a very
busy transport hub. Corio aims
for a mix of outlets, including
fashion, food and electronics but
also wants room for ‘slow’ shops,
places where customers can take
their time and try out new products
in a relaxed atmosphere.

a laboraTory To enrich Shopping experienceS
THe arrIval OF InTerneT
HaS gIven THe reTaIl
SeCTOr’S evOluTIOn a
TremendOuS puSH.
not only are more products sold online, but
the internet allows consumers to compare
products and prices from the comfort of their
own homes. That means shops have to use
other tactics to draw in customers. This is
where e-technology, social media and marketing
meet – it’s a laboratory dedicated to
enriching the shopping experience. a striking
example of this laboratory is to be found in
Shopville le gru, Turin Italy. ‘We keep a close
eye on what is going on in the entertainment
business,’ says centre manager alessandro
gaffuri. ‘Corio believes shopping should be
Centre manager alessandro gaffuri
about entertainment too. That is why in 2006
we started the gruvillage Festival – a two
month period in the summer with a different
event every day. That could be a children’s
circus or a performance by Italian and
international stars like gino vannelli, randy
Crawford, george benson and al jarreau. On
big nights we have 6,000 people here. but we
also look for constant contact with our customers.
In 2009 we started gru radio – our
own Fm music radio station and a gru radio
app has been available since june 2010. We
are now launching a loyalty card that guarantees
the centre’s fidelity towards its clients.
The more people spend the more points they
collect – which they can spend in le gru itself.
but they can also save up for a day’s skiing,
for example. We’ve also developed an app
for smart phones – the centre has free wifi –
which delivers shopping tips based on their
earlier purchases and restaurant visits. le
gru is also now on Facebook, which is where
our customers can communicate with each
other, and with us. This makes le gru not only
a real life, but also a virtual Favourite meeting
place.’
SuSTainabiliTy iS key To STraTegic aDvanTage
The driving force behind Corio’s ambition
to create Favourite meeting places is the
company’s belief in developing sustainability.
Corio understands that in order to be
successful, its shopping centres should be
sustainable in every respect, from the building
itself, its location and environment to the
impact on the community. Corio understands
you need the active involvement of all stakeholders
to make sure everyone’s expectations
are met and more value is created. Competi-
March
Corio acquires an operational
and development portfolio
in germany. Centrum galerie
dresden (breeam ‘excellent’),
is also part of this portfolio.
July
Corio participates in the international
research programme of the
Sustainable Investment in real
estate Centre, which was initiated
by the rICS together with
Kingston university london and
Krems danube university.
ocTober
The Corio Hr performance
management System is finalised
for all Corio employees and ready
to be implemented in 2011.
tive advantage is linked to wider expectations
in society at large, which is why Corio has
made CSr a prime strategic issue.
after all, consumers are becoming smarter,
better informed and more discerning and
that means they are looking for goods and
services which reflect their personal values.
at the same time, other stakeholders are
pushing environmental, social and governance
issues – all of which Corio is taking on
board. In practical terms this means focusing
april
The inaugural meeting for founding
members of ISa (the International
Sustainability alliance),
a global network of leading real
estate organisations dedicated
to achieving a more sustainable
built environment takes place.
Together with the ISa, Corio
developed KpIs which will provide
the basis for benchmarking our
environmental performance.
auguST
as a member of the united
nations (un) global Compact,
Corio reported on the implementation
of the 10 un principles by
means of a Communication on
progress.
It also included
the
millennium
development
goals.
noveMber
Corio’s shopping centre Tarsu
in Tarsus, Turkey, receives a
breeam ‘very good’ certificate.
May
Corio publishes a separate report
on CSr for the first time. Corio
adds a female member to the
management board: Francine
Zijlstra takes the position of COO.
SepTeMber
Corio is included in the dow
jones Sustainability World Index
and in the aSpI (advanced
Sustainable performance
Indices) register.
an international Corio CSr
meeting is held in Forum
duisburg. during this meeting
we officially launch the Corio
CSr performance management
system.
DeceMber
The International leadership
academy in Istanbul, founded by
Save the Children, in collaboration
with youth for Habitat, Wald
and uClg and supported by
Corio, goes live. In Corio Italia
a great place To Work survey is
carried out amongst over 100
companies. Corio ranks 35th.
on sustainability in operations: focusing on
energy efficiency, reducing CO ² emissions and
boosting well-being. One aspect of this is the
development of green leases with tenants
and suppliers.
On top of all this, of course, is the aim to
create sustainable centres themselves –
ensuring that the design and construction of
Favourite meeting places reflects the highest
standards in green and energy-efficient
design.
June
Corio nederland organises its
second ‘Summer night event’, a
roundtable with top ten tenants
on CSr.

porTfolio
Top 10 Shopping cenTreS by value
cenTre ciTy counTry (eur Mln) fooTfall (Mln) conTracTS/TenanTS
grand littoral marseille France 353.4 13.0 176
Hoog Catharijne utrecht netherlands 323.1 25.6 150
Shopville le gru Turin Italy 312.6 10.9 168
grand place grenoble France 302.9 8.3 121
Campania naples Italy 283.0 10.6 176
Centrum galerie dresden germany 279.7 8.8 109
alexandrium rotterdam netherlands 258.6 9.2 176
porta di roma rome Italy 234.8 17.2 250
Forum duisburg duisburg germany 232.3 9.0 86
príncipe pío madrid Spain 164.3 12.1 121
ToTal 2,744.7 124.7 1,533
In 2010 the value of the operational property
portfolio (including associates) rose from
H5,516 mln to H6,714.3 mln. The increase
was due largely to acquisitions made
during the year, which totalled H1,035.3
mln. These include the german takeover,
le vele/millennium, porta di roma and
anatolium. a number of non-core assets in
the netherlands and France were sold for a
total of H236.3 mln.
furTher inquirieS
data year-end 2010
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