ARE SHOPPING CENTERS WINNING AGAINST ON-STREET SPACES?

21th of November 2012 RETAIL MARKET OVERVIEW

 Romanian modern retail stock continues the upward trend;

 Food and fashion retailers are driving the current retail demand;

 The main focus for food retailers is based on convenience stores (Mega Image – 165 shops, Lidl – 154 shops, Profi – 142 shops, Carrefour Market – 60 shops, Penny Market – 130 shops, La doi Pasi – 400 shops);

 The expansion of large international retailers demonstrates their confidence and success in the country’s retail market (Inditex, H&M, Deichmann, New Yorker, Takko, C&A, Decathlon);

 New entries on the market: CCC, ODDGI, Clockhouse, Subway;

still dominates the local market in terms of attraction for retailers that want to expand their network, followed especially by large cities with over 200,000 inhabitants.

RETAIL MARKET OVERVIEW

• RETAIL MARKET MAJOR RETAIL OVERVIEW INDICATORS – Modern Retail Stock 2,723,000 sq m Bucharest - Modern Retail Stock 810,000 sq m New Retail Projects 2012 215,500 sq m Forecast Completions 2013 142,000 sq m Prime Rent Bucharest (On -Street) 60 euro/sq m/month Prime Rent Bucharest (Shopping Centres) 50 euro/sq m/month NEW RETAIL DEVELOPMENTS

Retail Schemes to be opened in 2012 Retail Scheme Surface Developer City Palas Mall 55,000 sq m Iulius Group Iasi Auchan City Crangasi 7,000 sq m Immochan Bucharest

Cora Bacau 18,500 sq m Romania Hypermarche Bacau Carrefour Property & Ploiesti Shopping City 55,000 sq m NEPI Ploiesti InterCora Mihai Bravu 12,000 sq m InterCora Bucharest Uvertura Mall 15,000 sq m Moldova Universal Botosani Era Shopping Park (2nd phase) 20,000 sq m Argo Capital Property Oradea

Cora 22,000 sq m Romania Hypermarche Bucharest European Retail Park 26,000 sq m BelRom Deva HIGH STREET OVERVIEW

 The current demand is driven by food BUCHAREST HIGH STREET RENTS Rent Level operators and betting agencies and Area casinos, while banks continue their cost- (Euro/sqm/month)* cutting process and relocate or close 50-60 several units; Calea Dorobantilor 50-60

Bulevardul Magheru 50-60  The Old City Center remains the hot spot Centrul Vechi 40-55 for Bucharest café & restaurant segment and a very attractive area for fashion RENTS COUNTRYSIDE retailers. Rent Level CITY (Euro/sqm/month)* BRASOV (Piata Sfatului -  Prime locations are still representing Republicii Boulevard) 40-45 expansion opportunities for fashion Sibiu (N. Balcescu) retailers. Boulevard 40-45 Cluj Napoca (Piata Unirii) 35-45

RETAILERS ‘ FOCUS RETAILERS’ FOCUS

EGO MEN’S CONCEPT STORE

LASCAR CATARGIU BOULEVARD BUCHAREST 500 SQ M DECEMBER 2012

RETAILERS’ FOCUS

ZARA

N. BALCESCU BOULEVARD SIBIU 1500 SQ M MARCH 2012

RETAILERS’ FOCUS

MASSIMO DUTTI

N. BALCESCU BOULEVARD SIBIU 350 SQ M JUNE 2012

RETAILERS’ FOCUS

NISSA

ROMANA SQUARE 260 SQ M JUNE 2010

RETAILERS’ FOCUS

BSB

MAGHERU BOULEVARD BUCHAREST 200 SQ M OCTOBER 2012

RETAILERS’ FOCUS

PROMENADE

N. TITULESCU BOULEVARD BUCHAREST 150 SQ M AUGUST 2012

RETAILERS' FOCUS RETAILERS’ FOCUS RETAILERS’ FOCUS

Prime high street locations remain a strong alternative for fashion retailers no matter how many shopping centers will be opened in the near future. THANK YOU!

MIHAELA PETRUESCU Director Head of Retail Division

CAPITAL PROPERTY ADVISORS Bucuresti – Romania; 31A, Amiral Balescu St., district 1 T: +40 21 230 14 02; F: +40 21 230 14 12; M: +40 726 760 760; [email protected]; http://www.cpadvisors.ro