intu properties plc Site visit to the North East, November 2016 - - PowerPoint PPT Presentation

intu properties plc

Site visit to the North East, November 2016

Welcome

David Fischel, Chief Executive

Itinerary

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This presentation contains “forward-looking statements” regarding the belief or current expectations of intu properties plc, its Directors and other members of its senior management about intu properties plc’s businesses, financial performance and results of operations. These forward-looking statements are not guarantees of future performance. Rather, they are based on current views and assumptions and involve known and unknown risks, uncertainties and other factors, many of which are outside the control of intu properties plc and are difficult to predict, that may cause actual results, performance or developments to differ materially from any future results, performance or developments expressed or implied by the forward-looking statements. These forward- looking statements speak only as at the date of this presentation. Except as required by applicable law, intu properties plc makes no representation or warranty in relation to them and expressly disclaims any obligation to update or revise any forward-looking statements contained herein to reflect any change in intu properties plc’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.

11:15 Presentation Kate Grant – Regional Director, North Roger Binks – Customer Experience Director Q&A Tour of intu Metrocentre 13:20 Lunch Tour of intu Eldon Square 15:30 Coach transfer/walk to Newcastle central station 15:59-18:50 Train from Newcastle to London Kings Cross

Maximising customer relationships to drive growth

Kate Grant, Regional Director, North Roger Binks, Customer Experience Director

The intu difference

Working together

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Aim – to monetise the brand

Asset management intu Digital intu Experiences

Customer relationship management strategy

Embracing omni-channel world

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• Sector specialists
• CACI research
• Omni – shopper profile:

understanding our customers Changing retailing mindset

Brand partnerships

Leisure example

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Promoting through intu Experiences Spanish connection intu Lakeside leisure letting more centres to follow……

Brand partnerships

Retail examples

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Consumer Focus

70% of car purchase decisions are made by women

Miniaturisation

Adapting to changing retailer models Increasing use of virtual reality technology

Key consumer brands

Developing brand relationships

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Making the brand count

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Monetise the intu brand

£

Leasing models – pricing & flexibility

Food for thought

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“West Edmonton Mall is the Mt. Everest of indoor entertainment, shopping, and attractions in North America – a place you have to visit at least once in your lifetime. Part adventure park and entertainment complex, part shopping and dining destination, the mall spans the equivalent of 48 city blocks”

Driving growth through our brand

Technology, digital and customer experience

Technical journey

Connected way of working – centre technology

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Corporate Technology Roadmap

2012 2016 2020

Core and Wifi installed Leveraged network Intelligent reactive plug and play buildings

Technical changes driving innovation

Core – intu’s platform of the future

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intu.co.uk

2013 2014 2015 2016 2017

intu.co.uk launched as a transactional marketplace Pivoted model to affiliate publisher Fully responsive site experience 2017 new technology & group holistic retailer strategy Site traffic grew at 30% YOY 480 retailers live selling

• nline

Where are we now?

Integrated booking platform

Multichannel appointment scheduling

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Turning data into actionable insight

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Our brand journey

Towards a hospitality brand

2013 2014 - 15 2016 - 18 <2013 2018 - 20

Launched and merchandised the intu brand Started measuring the brand Acting national & building emotional connections with

• ur guests

Individually managed brands Build brand credentials towards a loved and understood hospitality brand 18

2016 Christmas TV ad

Developing our Christmas TV ad

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The making of the Christmas TV ad

Developing our Christmas TV ad

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North East England

The North East

Strong regional economy

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+7.5%

population growth 2005-2014

£27.0k

average annual earnings

UK average £27.6k

47%

house prices lower than UK average

100,000 students

Source: Invest Newcastle (NGI)

intu Metrocentre

intu Metrocentre

History and recent activity

24 2007 – retail park acquired 2012 – MetrOasis built 2016 – Qube extension 2009/10 – Qube cinema extension 2012 – Federation Brewery site acquired

1986 – centre

• pened

1995 – centre acquired by intu 2007 – 40% sold to GIC

2014 – Platinum mall refurbished

intu Metrocentre

Qube catering extension

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£17m

total project cost

£1.4m

incremental rental income

8.2%

initial yield on cost

36%

profit on cost

“In my eyes, the relocation to the Qube is the best decision that TRG (The Restaurant Group) have ever made. Put it this way, we were around 30th in our group and since our relocation and new design we are 2nd only to the huge Leicester Square site. The numbers speak for themselves.” Gen ener eral Manager er, C CHIQUITO, in intu Met etrocen entre

intu Metrocentre

BHS let to Next – new 85,000 sq ft flagship

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12 small units removed

(6 relocations to other voids)

Increase on current rents Improved tenant covenant Existing Next unit under offer

Ground floor First floor

intu Eldon Square

intu Eldon Square

The heart of Newcastle city centre

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• St. Andrew’s extension

Grey’s Quarter Mall refreshment

1976

centre opened

2016

Grey’s Quarter restaurants

• pened

1980 1990 2000 2010

2010

St Andrew’s Way extension opened

2015

centre refurbished

intu Eldon Square

Grey’s Quarter

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£15m

total project cost (intu share)

£1.2m incremental rental

income (intu share)

7.7%

initial yield on cost

Appendices

9,250

free car parking spaces

intu Metrocentre

Key metrics

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21 million

annual footfall

2hrs 5mins

average dwell time

72%

• f customers visit every month

33%

• f customers visit weekly

57% ABC1

social grade

2.6 million

total population in catchment

342 stores

76%

• f shoppers are female

Source: CACI peak survey November 2015 *Gross Value Added (GVA) is a measure of the value of the goods and services produced in the economy.

£274.8 million

total GVA*

intu Metrocentre

Before and after

Before After

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61% ABC1

social grade

intu Eldon Square

Key metrics

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Source: CACI peak survey November 2015 *Gross Value Added (GVA) is a measure of the value of the goods and services produced in the economy.

34 million

annual footfall

1hr 40mins

average dwell time

86%

• f customers visit every month

58%

• f customers visit weekly

1.8 million

total population in catchment

140 stores

77%

• f shoppers are female

£273.4 million

total GVA*

intu Eldon Square

Before and after

Before After

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The North East

intu owns the strongest destinations

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Source: CACI residential comparison market goods potential (£m). The amount that residents arriving at the centre have to spend on comparison goods each year.

Food & Beverage

CBRE research: Eating out is an essential luxury

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2/3rds

• f people think F&B

important in where to visit

47%

stay longer if they eat or drink

75%

say quality of food is important on deciding where to eat

Source: CBRE: Food & beverage in a shopping centre (2015)

“A strong food and beverage offer aligns with the view that shopping is a leisure activity” “Food and beverage will become increasingly important as a footfall and revenue driver for shopping centres”

Food & Beverage

CBRE research: The future of F&B in shopping centres

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The number of people that say they go to a shopping centre just to eat or drink will increase Any centre that allocates less than 10% of GLA to food and beverage is not

• sustainable. We see 25% becoming more normal in many centres

New restaurant and dining brands will launch to market through shopping centres Tailoring the offer becomes even more important There is still a lot of money to be made from a refreshed food court

Source: CBRE: Food & beverage in a shopping centre (2015)

Food & Beverage

intu’s insight

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Source: CACI November 2015 exit surveys

166 mins dwell time catering users

Non catering users 92 mins

£168m

retail spend by catering users

Non catering users £129m

95%

retail conversion catering users

Non catering users 88%

+5%

growth in catering spend

June 16 vs June 15