GRA Retail Pulse Issue 1 - Jamie Lucas

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RETAIL PULSE PHNOM PENH CITY CENTER SUBMARKET SNAPSHOT ISSUE 2 – FEB 2021 PPCC RETAIL MARKET PPCC RETAIL ACTIVITY Grow Retail Asia (GRA) welcomes you to another exciting installment of Phnom Penh City Center has evolved as a focal point of new Retail Pulse. This second issue contains a comprehensive overview of development in Phnom Penh. Growing and improving Phnom Penh City Phnom Penh City Center’s (PPCC) retail real estate activity by covering: Center’s retail is easier when it is being recognized as Phnom Penh’s CBD PPCC PROPERTY DEVELOPMENTS AND RENTS (Central Business District). In PPCC, a retail concentration has emerged A breakdown of real estate developments contained with PPCC by and is successful. The successful community mall retail is drawing development status and type. customers from a broad geographic customer base supported by PPCC’s PPCC RETAIL ESTATE INVENTORY location along multiple significant roads, providing ease of accessibility The number and retail supply (Net Lettable Area) of existing and into the area, further supports retailers present within PPCC. pipeline retail estates within PPCC as of Q4 2020. PPCC TENANT ANALYSIS An analysis of notable retailers occupying Phnom Penh City Center by square meters in Q4 2020 . PPCC’S RETAIL SUPPLY BY RETAIL FORMATS A Q4 2020 analytical breakdown of PPCC’s existing and pipeline retail supply by retail format. PPCC’S RETAIL SUPPLY BY RETAIL USE An analytical breakdown of PPCC’s existing retail supply by retail use as of Q4 2020. Michael Vong Gary Lam Managing Director Director, Business Development +855 313 799 799 +855 98 856 611 michaelvong@growretailasia.com garylam@growretailasia.com RETAIL PULSE PHNOM PENH CITY CENTER SUBMARKET SNAPSHOT ISSUE 2 – FEB 2021 PPCC PROPERTY DEVELOPMENTS Phnom Penh City Center is a 111.6-hectare integrated township that Property Name Property Type Development Status incorporates a network of various types of real estate developments within its residential, business, retail, and recreational zones. Residence 90 Residential Complete The Edge Mixed-Use Under Development As of Q4, Phnom Penh City Center has a total of 9 confirmed real estate Eden Garden Community Mall Complete developments in various phases of development. Out of these confirmed Khalandale Community Mall Complete developments, 5 projects have seen completion, with another 4 projects View Park Community Mall Under Development currently under development. Lamborghini Office / Showroom Complete Residential developments make-up 33% of the total confirmed real estate The Lane (By One Park) Mixed-Used Under Development developments, while another 33% are pure retail centers. About 22% of Flatiron Residential / Hotel Under Development confirmed real estate developments in PPCC are Mixed-Used One Park Residential Completed developments consisting of offices, residences, and small-scale retail. Standalone offices account for 11% of PPCC’s confirmed real estate PPCC RETAIL RENTS developments as of Q4 2020, with Lamborghini’s showroom being the latest addition to PPCC, and the brands first entry into the Cambodian Phnom Penh City Center’s average retail rental stood at $23.50 per Square market. There is still more space (land) to fill-up in Phnom Penh City meter as of Q4, 2020. This average rental rate is typically lower than pre- Center, making it possible to accommodate more real estate COVID-19 rates as retail was the most exposed sector towards the pandemic, developments and recreational facilities with construction and planning resulting in numerous store closures, and ultimately weakening retail underway for a sports complex and a central park. demand and rents. Michael Vong Gary Lam Managing Director Director, Business Development +855 313 799 799 +855 98 856 611 michaelvong@growretailasia.com garylam@growretailasia.com RETAIL PULSE PHNOM PENH CITY CENTER SUBMARKET SNAPSHOT ISSUE 2 – FEB 2021 PPCC RETAIL ESTATE INVENTORY PPCC TENANT ANALYSIS As of Q4 2020, PPCC contains 2 completed and operational retail estates, FIGURE 2: NOTEABLE RETAIL TENANTS IN PPCC BY SQAURE METERS with the deliveries of Eden Garden and Khalandale Mall which launched in 2101-2500 sq.m Legend Cinema 2018 and 2020, respectively. By 2021, PPCC will accommodate a total of 4 301-400 sq.m Zando, The Pizza Company 201-300 sq.m Chip Mong Supermarket, Baby Outlet, Aeon retail estates with the deliveries of View Park and The Lane (By One Park) Max Valu, Brown Coffee which are both expected to be complete and operational by Q2 and Q3 151-200 sq.m S&P Thai Restaurant & Bakery, Dim Sum 2021, respectively. 101-150 sq.m Emperors, Starbucks, Huat Huat BBQ. Two Cows Steakhouse, Geylang Lor9, Kyoka FIGURE 1: PPCC EXISTING & PIPELINE RETAIL SUPPLY: (SQUARE METERS) – Q4 2020 Sushi, HELP Pharmacy, The Lobster Bay. 50-100 sq.m Yellow Cab Pizza, The Barber Shop, Glimmer Salon, Pepper Lunch. Source: Grow Retail Asia (2021) 47% 53% 17,800 Square Meters The unique blend of retailers in PPCC (illustrated above) is reflective of its Of existing retail supply extensive trade area due to the ease of access into PPCC. Chip Mong Supermarket and Aeon Max Valu are the most prevalent 15,900 Square Meters grocery stores in PPCC as they cater to the surrounding residential Of retail supply under construction community. Legend Cinema remains the only cinema within PPCC, Source: Grow Retail Asia (2021) predominating the list of largest retailer by square meter. Michael Vong Gary Lam Managing Director Director, Business Development +855 313 799 799 +855 98 856 611 michaelvong@growretailasia.com garylam@growretailasia.com RETAIL PULSE PHNOM PENH CITY CENTER SUBMARKET SNAPSHOT ISSUE 2 – FEB 2021 SUPPLY BY RETAIL FORMAT SUPPLY BY RETAIL USE By 2021, more than half of PPCC’s retail supply will originate from FIGURE 4: PPCC EXISTING RETAIL SUPPLY BY RETAIL USE (Q4 2020) community malls, as this retail format will account for 22,600 sq.m of Food & Beverage (5,734 sq.m) PPCC’s total retail supply by the end of 2021. The remaining 11,100 sq.m of retail supply will be contributed by retail podiums by the end of 2021. Entertainment (2,400 sq.m) 2% 13% FIGURE 3: PPCC’S RETAIL SUPPLY BY RETAIL FORMAT FROM 2020 to 2021 General Merchandise, Apparel & Household (1,803 sq.m) 14% Health, Beauty & Lifestyle 46% (1,620 sq.m) 1% Supermarkets (594 sq.m) Services (238 sq.m) 19% 5% Bank (124 sq.m) Source: Grow Retail Asia (2021) Food & Beverage retailers make-up the largest portion of occupied space, occupying 5,734 sq.m of PPCC’s retail supply stock. 2,400 sq.m and 124 sq.m is occupied by non-retail use such as Cinemas and banks, respectively. Supermarkets have occupied 594 sq.m of PPCC’s supply stock Source: Grow Retail Asia (2021) Community Malls Retail Podiums Michael Vong Gary Lam Managing Director Director, Business Development +855 313 799 799 +855 98 856 611 michaelvong@growretailasia.com garylam@growretailasia.com