intu properties plc Site visit to the North East, November 2016

Transcription

1 intu properties plc Site visit to the North East, November 2016

2 Welcome David Fischel, Chief Executive

3 Itinerary 11:15 Presentation Kate Grant Regional Director, North Roger Binks Customer Experience Director Q&A Tour of intu Metrocentre 13:20 Lunch Tour of intu Eldon Square 15:30 Coach transfer/walk to Newcastle central station 15:59-18:50 Train from Newcastle to London Kings Cross This presentation contains forward-looking statements regarding the belief or current expectations of intu properties plc, its Directors and other members of its senior management about intu properties plc s businesses, financial performance and results of operations. These forward-looking statements are not guarantees of future performance. Rather, they are based on current views and assumptions and involve known and unknown risks, uncertainties and other factors, many of which are outside the control of intu properties plc and are difficult to predict, that may cause actual results, performance or developments to differ materially from any future results, performance or developments expressed or implied by the forward-looking statements. These forwardlooking statements speak only as at the date of this presentation. Except as required by applicable law, intu properties plc makes no representation or warranty in relation to them and expressly disclaims any obligation to update or revise any forward-looking statements contained herein to reflect any change in intu properties plc s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. 3

4 Maximising customer relationships to drive growth Kate Grant, Regional Director, North Roger Binks, Customer Experience Director

5 The intu difference Working together Asset management intu Digital intu Experiences Aim to monetise the brand 5

6 Customer relationship management strategy Embracing omni-channel world Sector specialists CACI research Omni shopper profile: understanding our customers Changing retailing mindset 6

7 Brand partnerships Leisure example Promoting through intu Experiences Spanish connection intu Lakeside leisure letting more centres to follow 7

8 Brand partnerships Retail examples Consumer Focus 70% of car purchase decisions are made by women Miniaturisation Adapting to changing retailer models Increasing use of virtual reality technology 8

9 Key consumer brands Developing brand relationships 9

10 Making the brand count Leasing models pricing & flexibility Monetise the intu brand 10

11 Food for thought West Edmonton Mall is the Mt. Everest of indoor entertainment, shopping, and attractions in North America a place you have to visit at least once in your lifetime. Part adventure park and entertainment complex, part shopping and dining destination, the mall spans the equivalent of 48 city blocks 11

12 Driving growth through our brand Technology, digital and customer experience

13 Technical journey Connected way of working centre technology Corporate Technology Roadmap Core and Wifi installed Leveraged network Intelligent reactive plug and play buildings 13

14 Technical changes driving innovation Core intu s platform of the future 14

15 intu.co.uk Where are we now? intu.co.uk launched as a transactional marketplace Fully responsive site experience Pivoted model to affiliate publisher Site traffic grew at 30% YOY 480 retailers live selling online 2017 new technology & group holistic retailer strategy 15

16 Integrated booking platform Multichannel appointment scheduling 16

17 Turning data into actionable insight 17

18 Our brand journey Towards a hospitality brand < Individually managed brands Launched and merchandised the intu brand Started measuring the brand Acting national & building emotional connections with our guests Build brand credentials towards a loved and understood hospitality brand 18

19 Developing our Christmas TV ad 2016 Christmas TV ad 19

20 Developing our Christmas TV ad The making of the Christmas TV ad 20

21 North East England

22 The North East Strong regional economy +7.5% 27.0k 47% population growth average annual earnings UK average 27.6k house prices lower than UK average 100,000 students 22 Source: Invest Newcastle (NGI)

23 intu Metrocentre

24 intu Metrocentre History and recent activity 2007 retail park acquired 2012 MetrOasis built 2009/10 Qube cinema extension 2016 Qube extension 2014 Platinum mall refurbished 1986 centre opened 1995 centre acquired by intu % sold to GIC 2012 Federation Brewery site acquired 24

25 intu Metrocentre Qube catering extension 17m total project cost 1.4m incremental rental income In my eyes, the relocation to the Qube is the best decision that TRG (The Restaurant Group) have ever made. Put it this way, we were around 30th in our group and since our relocation and new design we are 2nd only to the huge Leicester Square site. The numbers speak for themselves. General Manager, CHIQUITO, intu Metrocentre 8.2% initial yield on cost 36% profit on cost 25

26 intu Metrocentre BHS let to Next new 85,000 sq ft flagship Ground floor 12 small units removed (6 relocations to other voids) Increase on current rents Improved tenant covenant First floor Existing Next unit under offer 26

27 intu Eldon Square

28 intu Eldon Square The heart of Newcastle city centre Mall refreshment St. Andrew s extension Grey s Quarter centre opened 2010 St Andrew s Way extension opened 2016 Grey s Quarter restaurants opened 2015 centre refurbished 28

29 intu Eldon Square Grey s Quarter 15m 1.2m total project cost (intu share) incremental rental income (intu share) 7.7% initial yield on cost 29

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31 Appendices

32 intu Metrocentre Key metrics 21 million annual footfall 76% of shoppers are female 2.6 million total population in catchment 72% of customers visit every month 57% ABC1 social grade 33% of customers visit weekly 2hrs 5mins average dwell time 9,250 free car parking spaces 342 stores million total GVA* 32 Source: CACI peak survey November 2015 *Gross Value Added (GVA) is a measure of the value of the goods and services produced in the economy.

33 intu Metrocentre Before and after Before After 33

34 intu Eldon Square Key metrics million annual footfall 77% of shoppers are female 1.8 million total population in catchment 86% of customers visit every month million total GVA* 58% of customers visit weekly 1hr 40mins average dwell time 61% ABC1 social grade 140 stores Source: CACI peak survey November 2015 *Gross Value Added (GVA) is a measure of the value of the goods and services produced in the economy.

35 intu Eldon Square Before and after Before After 35

36 The North East intu owns the strongest destinations Source: CACI residential comparison market goods potential ( m). The amount that residents arriving at the centre have to spend on comparison goods each year. 36

37 Food & Beverage CBRE research: Eating out is an essential luxury 2/3rds 47% of people think F&B important in where to visit stay longer if they eat or drink A strong food and beverage offer aligns with the view that shopping is a leisure activity Food and beverage will become increasingly important as a footfall and revenue driver for shopping centres 75% say quality of food is important on deciding where to eat 37 Source: CBRE: Food & beverage in a shopping centre (2015)

38 Food & Beverage CBRE research: The future of F&B in shopping centres The number of people that say they go to a shopping centre just to eat or drink will increase Any centre that allocates less than 10% of GLA to food and beverage is not sustainable. We see 25% becoming more normal in many centres New restaurant and dining brands will launch to market through shopping centres Tailoring the offer becomes even more important There is still a lot of money to be made from a refreshed food court 38 Source: CBRE: Food & beverage in a shopping centre (2015)

39 Food & Beverage intu s insight 166 mins 168m 95% +5% dwell time catering users Non catering users 92 mins retail spend by catering users Non catering users 129m retail conversion catering users Non catering users 88% growth in catering spend June 16 vs June Source: CACI November 2015 exit surveys