PropertyEU survey of retail pipeline in Europe

PropertyEU asked leading developers about their committed retail pipeline in Europe. Here are the results:

Multi Development
The Netherlands
Committed retail pipeline: 3.9 million m2
Multi Development, the Dutch-based developer owned by Morgan Stanley, has secured retail projects with a gross leasable area of 3.9 million m² out of a total pipeline of 4.9 million m² spread across 16 countries. The estimated value of the retail pipeline comes to EUR 17.22bn and the average net yield for these projects is expected to range from 4.5% and 7.5%. Turkey accounts for almost 30% of the value of Multi’s retail pipeline. Last May, Multi Corporation took 100% ownership of Multi Turkmall, its joint venture in Turkey.


ING Real Estate Development
The Netherlands
Committed retail pipeline: 1.5 million m2
ING Real Estate Development is part of ING Real Estate which has a total business portfolio of EUR 80bn and offices in 21 countries worldwide. ING RED is involved in about 100 retail schemes under development or being constructed in nine European countries. The projects comprise a total of 2.3 million m2, of which the ING RED's share is 1.5 million m². Last June, the company was named 'developer of the year' at the Global RLI Awards 2007 in London.

TK Development
Denmark
Committed retail pipeline: 1.1 million m2
Listed Danish property company TK Development consists of two components: TKD Nordeuropa is active in Denmark, Sweden, Finland and the Baltic countries, while Euro Mall, in which TK has 90% ownership, operates in Poland, the Czech Republic and Slovakia. TK had an estimated project portfolio of 1.1-1.2 million m² in January 2008. Some 260,000 m² worth of completed projects is to be handed over during 2007/8.

ECE Projektmanagement
Germany
Committed retail pipeline: 1.1 million m2
Founded in 1965, ECE has developed €10bn-worth of company headquarters, logistics and warehouse centres and shopping centres. The main focus is the development of inner city shopping centres. ECE has a committed retail pipeline of 1.1 million m2, valued at EUR 4.3bn, in 13 European countries and Turkey. In 2007, ECE formed a joint venture with US-based Developers Diversified Realty to develop shopping centres, with a total value of €1bn, in Russia and Ukraine.

Turkmall
Turkey
Committed pipeline: not available
Established in 1992, Turkmall works in partnership with retail giants like Ikea, Carrefour and Metro. Turkmall claims it has developed more than 2 million m² of shopping centre space and has a further 10 million m² of gross leaseable area under construction or in the process of being developed. Apart from Turkey, Turkmall is also active in Greece, Romania, Bulgaria, the Balkans recently ventured into the Chinese market. The company is exploring opportunities in Kazakhstan, Ukraine, Georgia, Egypt, the Middle East and South Africa.

Unibail-Rodamco
France/Netherlands
Committed retail pipeline: 1.1 million m2
French-Dutch Unibail-Rodamco is the largest listed European real estate company. The group covets the top developer spot in Europe and last November launched a new development unit with a pipeline of 1.1 million m² in retail projects, and a further 400,000 m² in commercial projects. Eleven of the projects are located in France, two in Spain and one in Sweden. Chief financial officer Michael Dessolain sees the retail development company expanding in due course into a pan-European concern with activities in a large number of European countries.

Trigránit Development Corporation
Hungary
Committed retail pipeline: 947,804 m2
Established in 1997, Trigránit has completed projects that cover the full range of property types in Hungary, Poland, Slovakia and the Czech Republic. Trigránit has completed just under 560,000 m² of retail space, valued at EUR 2bn. The focus has been on dominant, mixed-use 'city centre' developments. Last year, retail accounted for 80% of the 108,000 m² of developed space sold by Trigránit. Hungary makes up 10% of the retail development portfolio. Trigranit recently added several Balkan countries, Russia and Ukraine to its stable of countries. Russia accounts for 35% of the retail development portfolio; and Poland 23%.

Altarea
France
Committed retail pipeline: 900,000 m2
Altarea was established in 1994 as an investor and developer of shopping centres, offices and other property segments. In 2007, the listed company delivered a record of five projects, three shopping centres in France and two in Italy, amounting to a total of 99,000 m2, at an average net yield of 10%. Altarea has a secure retail pipeline of 900,000 m2, valued at EUR 1.82bn. Altarea acquired French peer Cogedim for EUR 650mln in June 2007.

XXI Century (21 Century)
Ukraine
Committed retail pipeline: 850,000 m2
XXI Century, which listed on London’s junior market AIM in 2005, is a leading local real estate developer in Ukraine. Its committed retail portfolio comprises 19 projects totalling 850,000 m². At end-2007, the portfolio was valued at $484mln. Property adviser Colliers International and analysts have forecast net yields of between 8.5-9.5% for the retail projects. Retail makes up 24% of XXI Century’s total portfolio value of EUR 2.2bn.

Foruminvest
The Netherlands
Committed retail pipeline: 820,000 m2
Foruminvest has developed more than 40 shopping centres and city projects since it was established in 1987. It has a committed pipeline of 820,000 m² of retail space valued at EUR 5.27bn. France accounts for 42.6% of the portfolio, Italy 37% and Belgium 18.2%. Foruminvest has also moved into Turkey. To date Foruminvest has completed a total of 474,050 m² of retail space, valued at EUR 834mln. The International Council of Shopping Centers awarded Foruminvest for the best public-private partnership in Europe in 2005.

Apsys
France
Committed retail pipeline: 650,000 m2
French shopping centre and residential developer Apsys was founded in 1996 and entered Poland a year later. The company opened an office in Russia last February. Apsys now has two developments in Poland and 13 in France. The committed pipeline of 650,000 m² in retail space is valued at EUR 2bn. The anticipated yield varies from 7% to 10% from project to project.

Redevco Europe
Netherlands
Committed retail pipeline: 610,000 m2
Part of the Brenninkmeijer family’s COFRA Holding, Redevco Europe manages a €7bn-portfolio of mainly retail properties in major cities across 20 European countries and Turkey. Project development has become an integral part of the company’s activities and its project portfolio is valued at EUR 1.8bn. About 90% of the 30 developments and redevelopments in the 610,000 m2-pipeline is retail. In 2007, Redevco sold 44,429 m² of retail space.

Sonae Sierra
Portugal
Committed retail pipeline: 500,000 m2
Shopping centre specialist Sonae Sierra was incorporated in Portugal in 1989. Sonae SGPS (Portugal) and the UK's Grosvenor each own 50% of the company. Sonae Sierra has 13 major projects under development in Portugal, Spain, Italy, Germany, Greece, Romania and Brazil with a total GLA above 500.000 m².

Lend Lease Europe Ltd
UK
Committed retail pipeline: 260,000 m2
The European headquarters of Australia’s Lend Lease Group is in the English city of Harrow. The company has four operating shopping centres in the UK and four developments, totalling 260,000 m² of gross lettable area. In mid-March, Minerva, the UK listed property investor and developer, announced the ending of an arrangement with Lend Lease which had been responsible for development and asset management of the 90,000 m² Park Place scheme, one of the largest shopping centre developments in the UK.

Meinl European Land
Austria
Committed retail pipeline: not available
Austria-listed Meinl Land Europe (MEL) is a leading shopping centre developer in 11 countries in Central and South Eastern Europe. Russia is a key market for MEL and in March this year the company unveiled a 100,000 m² shopping centre development in St Petersburg. The current project pipeline includes 26 new development projects and 8 extensions of existing shopping centres with an expected investment volume of EUR 3.4bn. The company has also acquired land plots in three cities with an area of 1.1 million m² for development. A joint venture of Israeli property company Gazit-Globe and Citigroup’s CPI Capital Partners Europe is to make a strategic investment of up to €800mln in MEL as part of a major restructuring.