Gary Lam Director, Business Development +855 98 856 611 garylam@growretailasia.com Michael Vong Managing Director +855 313 799 799 michaelvong@growretailasia.com RESEARCH IS AT OUR CORE Grow Retail Asia (GRA) welcomes you to the successful launch of “ Retail Pulse ”, where we share highlights, insights, data and trends on Phnom Penh’s growing and forever changing Retail landscape. With a blend of retail expertise, mathematical precision and analytical excellence, our proprietary research and data monitors the market and discovers opportunities for growth within Phnom Penh’s retail sectors. RETAIL PULSE 2020 END YEAR RETAIL ESTATE MARKET OVERVIEW ISSUE 1 PHNOM PENH GRA’s first issue of “ Retail Pulse ” provides an overview recap of 2020’s Retail Estate market, including insight, data and analytics on the following: INSIDE ISSUE 1 ISSUE 1 RETAIL TERMINOLOGIES A glossary providing definitions to key terms, indicators, and metrics used in the retail estate sector. 2020 RETAIL ESTATE DELIVERIES New notable retail estates that have began operations in 2020 by name, submarket and retail format. 2020 RETAIL SUPPLY End year 2020 total existing retail supply in Phnom Penh with a quarterly breakdown of new supply in 2020. 2020 SUPPLY BY RETAIL FORMAT End year 2020 total retail supply in Phnom Penh broken down by retail format. COMMUNITY MALLS Local retail centers offering convenience-based goods with a heavy focus on food & groceries. Total net lettable area is less than 10,000 square meters with approximately 15-20 retailers and typically anchored by a grocery store. Gary Lam Director, Business Development +855 98 856 611 garylam@growretailasia.com Michael Vong Managing Director +855 313 799 799 michaelvong@growretailasia.com RETAIL PULSE 2020 END YEAR RETAIL ESTATE MARKET OVERVIEW ISSUE 1 PHNOM PENH ISSUE 1 RETAIL TERMINOLOGIES As GRA aims to actively contribute to the transparency of the markets, we have highlighted the following definitions and indicators used within issue 1 of “ Retail pulse ”, so that our readers can understand what the indicators mean: NET LETTABLE AREA (NLA) The internal floorspace in a building that is occupied by retailers exclusive of non leasable space such as hallways, building foyers, building equipment and other utility areas. RETAIL PODIUMS A small retail center that blends two or more non-retail commercial developments such as residential and / or office tower(s). Total net lettable area is not more than 30,000 sq. m., with retail offerings usually limited to F&B, services and general retail. SHOPPING MALLS Large retail centers located in established residential suburbs usually with a total net lettable area between 50,000 sq.m -85,000 sq. m. Extensive coverage of full range retail needs with several entertainment and leisure attractions from a stronger lineup of international retailers. SHOPPING CENTERS Medium sized retail center that sells a full variety of general merchandise, mostly apparel however, not as exhaustive as Shopping Malls with much focus on regional and / local retailers. Total net lettable area is between 20,000 sq. m to 40,000 sq. m. RETAIL CENTER SUBMARKET RETAIL FORMAT North Community Mall The One Mall Samai Square West 313 Quayside Community Mall North South Community Mall TK Central North Retail Podium Khalandale Community Mall TL Sky Mall West Community Mall Gary Lam Director, Business Development +855 98 856 611 garylam@growretailasia.com Michael Vong Managing Director +855 313 799 799 michaelvong@growretailasia.com 2020 RETAIL ESTATE DELIVERIES RETAIL PULSE 2020 END YEAR RETAIL ESTATE MARKET OVERVIEW ISSUE 1 PHNOM PENH Phnom Penh has witnessed the opening and operations of 6 new retail centers within 2020 Q1 set the mark for the completion of Samai Square and TL Sky Mall , followed by TK Central and Khalandale with operations commencing in Q3 313 Quayside and The One Mall are the latest additions to the Retail Estate market having begun operations in Q4 2020 RETAIL SUPPLY FIGURE 1: 2020 QUARTERLY NEW RETAIL SUPPLY (NLA) Source: Grow Retail Asia (2020) The 2020 end year modern retail stock is 349,348 sq. m in Phnom Penh with no retail projects delivered in Q2 . By the end of Q4 2020 , retail estate deliveries contributed 40,740 sq. m, less than half of the retail supply volume compared to 2019. This was initially expected with the prevalence of COVID-19, resulting to the delay of the construction of numerous retail estate developments. 139,000 sq. m Gary Lam Director, Business Development +855 98 856 611 garylam@growretailasia.com Michael Vong Managing Director +855 313 799 799 michaelvong@growretailasia.com 2020 SUPPLY BY RETAIL FORMAT RETAIL PULSE 2020 END YEAR RETAIL ESTATE MARKET OVERVIEW ISSUE 1 PHNOM PENH Much of Phnom Penh’s existing retail supply derives from Shopping Malls , supplying 139,000 sqm. A further 81,000 sqm of retail supply had been delivered in Shopping Centers The remaining 129,348 sqm of Phnom Penh’s end year retail supply was primarily composed of Community Mall and Retail Podium stock, with 81,182 sqm and 48,166 sqm contributed respectively. THE OUTLOOK Shopping Malls FIGURE 2: 2020 RETAIL SUPPLY (NLA) BY RETAIL FORMAT Source: Grow Retail Asia (2020) Shopping Centers Community Malls Retail Podiums 40% 23% 81,000 sq. m 81,182 sq. m 23% 48,166 sq. m 14% The prevalence of COVID-19 has resulted in a sluggish growth in both retail supply and retail activity in 2020 . We expect trading conditions for some retail sub-groups to remain slightly challenging moving forward in 2021, however, Food & Beverage , takeaway food services , grocery and fashion are likely to experience positive growth. Regardless, general sentiment remains the same as pre-COVID-19 with the most desirable assets being grocery-anchored retail centers. Grow Retail Asia is a boutique Retail Asset and Development Management Consultancy located in Phnom Penh. We are passionate about providing bespoke business solutions, specific to your projects, giving individualized service, Listening and actually asking what you need, and then working with you to address those needs. Each of us as individuals, has extensive experience in Retail Development and Management, and on Asset Development, in particular large Urban Townships, Mixed Development projects, and Boreys. A GROW RETAIL ASIA RESEARCH PUBLICATION