A Henry Stewart Briefing
Retail Property
in Central & Eastern Europe

Chairman

Dr. Paul Kennedy
Head of Research
INVESCO Real Estate

Speakers

Russell Banham
Partner, Retail Investment & Development
Donaldsons

Robin Bevan
Director
Javelin Group

Karine Farrar
Real Estate Markets – Senior Analyst
DTZ Consulting & Research

Walter Hampel
Senior Director, Structured Finance & Investment Banking
Hypo Real Estate Bank International AG

Daniel Larkin
Partner, European Practice Head – Real Estate & Hospitality
Squire, Sanders & Dempsey

Samira Mohyuddin
Senior Economist, Economic & Real Estate Forecasting Team
DTZ Consulting & Research

Adrian Moore
Partner
Baker & McKenzie

Neville Moss
National Director, European Retail Research
Jones Lang LaSalle

Mike Nagelsztajn
Director
S & P Architects Ltd

Marek Noetzel
Negotiator, Retail Department
Cushman & Wakefield

Mark F. Richardson
Head of Central Europe
Pradera AM Plc

 

Programme

Countries covered throughout the day: Bulgaria, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Russia, Slovakia, Slovenia and Ukraine.

Demand – From Occupiers and Investors
• The Central & Eastern European retail market - where are we now?
- Key market characteristics (similarities and differences in the structure of the national markets)
- The main occupiers & how they are accessing the markets
- The main investors & how they are accessing the markets
• Reference will be made to numerous case studies
• The outlook
Samira Mohyuddin
Senior Economist
Economic & Real Estate Forecasting Team &
Karine Farrar
Real Estate Markets – Senior Analyst
DTZ Consulting & Research

Specifications
• Retail design in CEE
- Out of town, edge of town, city centre
- Anchors... hypermarkets, department stores, leisure
- Unit sizes, mall widths, car parking etc.
- Quality of design & finishes
- Multi-deck trading
• Successes, failures and lessons learnt
• Future trends
• Factory outlet centres
Mike Nagelsztajn
Director
S & P Architects Ltd

Locations
• Key issues for assessing viability of new shopping centre developments
- Catchment analysis
- Dealing with data issues: demographics, spending
- Forecasting sales potential
- Assessing competitive impact
• Leading retail venues in CEE
- Shopping centre penetration by country
- Ranking of top shopping venues in CEE
- Key international retailer brands already established, seeking to be established and looking to expand
• Case Study on Poland highlighting issues arising throughout CEE
- Ranking of leading venues
- Leading shopping centres
- Development opportunities
- Regional opportunities
Robin Bevan
Director
Javelin Group

Yields
• Retail market trends – high street, retail warehouses, shopping centres
• Rents – rental growth, pricing and return prospects
• The retail investment market. What has happened to rents & yields to date – CEE vs. eurozone
• Why invest in retail in CEE? What are investors targeting most? Have CEE investments paid off in the past?
• Retail yields in CEE – what is driving the yield shifts?
Mark F. Richardson
Head of Central Europe
Pradera AM Plc

Lease Terms and Trends
• The Polish retail market today
• Expansion of the Polish retail market over the past 10 – 15 years, as a representative market for emerging new EU joiners from CEE
• Lease terms changes over that period
• Current trends in the market
• Extrapolating the data to make predictions for the rest of CEE
Marek Noetzel
Negotiator
Retail Department
Cushman & Wakefield

Funding
• Funding sources – local banks vs. cross border lenders
• Development funding
• Investment funding
• Debt structures – senior and mezzanine
• Acquisition structures – asset deals vs. share deals
• Creating collateral – avoiding financial assistance
• Lenders and terms
Walter Hampel
Senior Director
Structured Finance & Investment Banking
Hypo Real Estate Bank International AG

Development Opportunities in the CEE
• An economic overview
• The relative market attractiveness of the CEE countries
• Market evolution / maturity
• Growth opportunities within the CEE countries
• The art of uncovering the opportunity – assessing detailed local knowledge in CEE
Russell Banham
Partner
Retail Investment & Development
Donaldsons

Development Opportunities - A Special Cure (?): The Retail Real Estate Market in Russia
• Economic background and international context
• Moscow: misconceptions, the consumer, development and retailers
• The regions: the market potential
• Retail investment overview
Neville Moss
National Director
European Retail Research
Jones Lang LaSalle

Legal Perspectives – Central & Eastern Europe, Russia
• Quality of documentation and legal structuring
• Sensitive issues: turnover rents, keep-open obligations
• Pre-leasing pitfalls and tenant turnover
Adrian Moore
Partner
Baker & McKenzie

Structures for Buying, Selling and Joint Ventures
• Onshore vs. Offshore acquisition / venturing vehicles
• Is it a property deal or an M&A deal?
• Internationalising financial centre best practices
• Financing options
- Senior vs. mezzanine debt
- Development financing
- Securitisation
Daniel Larkin
Partner, European Practice Head – Real Estate & Hospitality
Squire, Sanders & Dempsey