South African investor and analyst property tour

Transcription

1 South African investor and analyst property tour June 2014

2 Intu Properties plc South African investor and analyst property tour, June Itinerary Tuesday 24 June Wednesday 25 June 09:00 Refreshments Presentation - David Fischel, Chief Executive - Trevor Pereira, Commercial & Digital Director - Roger Binks, Customer Experience Director - Charlie Griffiths, Senior Asset Manager Tour of intu Watford 10:40 Travel to intu Merry Hill 13:00 Lunch Introduction to intu Merry Hill - Julian Wilkinson, Regional Director Tour of intu Merry Hill 14:45 Travel to intu Trafford Centre 16:45 Introduction to intu Trafford Centre - Gordon McKinnon, Operations Director - Julian Wilkinson, Regional Director Tour of intu Trafford Centre 08:00 Pick up from The Mere Golf Resort & Spa Transfer to Nottingham 10:15 Introduction to Intu s plans for Nottingham - Mike Butterworth, Chief Operating Officer - Martin Ellis, Construction & Development Director Tour of intu Victoria Centre and intu Broadmarsh 11:45 Travel to intu Derby 12:30 Lunch Introduction to intu Derby - Martin Breeden, Regional Director Tour of intu Derby 14:21 Train from Derby to London Kings Cross Car transfers from Kings Cross to Paddington for the Heathrow Express will be arranged for those flying out of Heathrow Airport on the 25 June 17:00 Arrive at Heathrow Airport for onward travel (flights 7pm-9pm) This presentation includes statements that are forward-looking in nature. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Intu Properties plc to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Any information contained in this presentation on the price at which shares or other securities in Intu Properties plc have been bought or sold in the past, or on the yield on such shares or other securities, should not be relied upon as a guide to future performance Page 2 Free time at intu Trafford Centre 18:30 Transfer to The Mere Golf Resort & Spa, Knutsford 19:45 for 20:00 Pre-dinner drinks, The Residents Bar at The Mere Dinner, The Riley Room at The Mere

3 Corporate overview

4 Intu at a glance Over 21m sq ft of retail, catering and leisure space 12 of UK s top 25 shopping centres 2/3 1.2bn development pipeline of the UK s population live within a 45 minute drive time of one of our centres 30m unique customers Our centres attract 400m customer visits a year 95% occupancy Page 4

5 Scale, focus and quality set Intu apart 2 Assets of which Intu s share is > 100m Page 5

6 Intu - leading owner, developer and manager of prime UK shopping centres Centre Location Centre Location 1 Westfield London London - Shepherds Bush 23 intu Bromley Bromley 2 Bluewater Greenhithe 24 intu Eldon Square Newcastle 3 Westfield Stratford City London - Stratford 25= intu Braehead Glasgow 4 Meadowhall Sheffield 25= Victoria Square Belfast 5 intu Trafford Centre Manchester 27 East Kilbride Shopping Centre Glasgow 6 St David's Cardiff 28 Victoria Quarter Leeds 7 intu Lakeside Thurrock 29 Silverburn Glasgow 8 intu Metrocentre Gateshead 30 White Rose Shopping Centre Leeds 9 Liverpool One Liverpool 31 The Oracle Reading 10 Bullring Birmingham 32 Buchanan Galleries Glasgow 11 Arndale Centre Manchester 33 Churchill Square Brighton 12 Brent Cross London 34 Golden Square Warrington 13 intu Merry Hill (2) Brierley Hill 35 Trinity Leeds Leeds 14 The Mall at Cribbs Causeway Bristol 15 Cabot Circus Bristol 16 Cabot Place, One Canada Square London 45 intu Victoria Centre Nottingham 17 Highcross Leicester Leicester 50 intu Potteries Stoke-on-Trent 18 intu Derby (2) Derby 52 intu Chapelfield Norwich 19 thecentre: mk (3) Milton Keynes 60 intu Milton Keynes Milton Keynes 20 intu Watford Watford 71 intu Uxbridge Uxbridge 21 Festival Place Basingstoke 187 intu Broadmarsh Nottingham 22 West Quay Southampton Source: PMA (1) Top shopping centres on basis of PMA Retail Score (December 2013). Intu shopping centres highlighted orange (2) Acquired on 1 May 2014 (3) Adjoined by intu Milton Keynes, which was acquired by Intu in March 2013 Page 6

7 Newly acquired centres intu Merry Hill intu Derby Market value 408m* 390m Occupancy 96% 99% Size (m sq.ft.) 1.4** 1.3 Net annual 22.6m 28.2m rent*** % ownership 50% 100% Headline rent ITZA Number of stores Approx 215 Over 180 Key stores M&S, Debenhams, Primark, Asda M&S, Debenhams, Next, Cinema De Lux * Intu s 50% share ** Size of covered shopping centre. Total retail space, including retail parks, c 1.7m sq ft *** Net Annual Rent as at 20 March 2014 per valuation report Page 7

8 intu Merry Hill Investment rationale Strategic West Midlands location filling a gap in Intu s national coverage Relatively low valuation and rental levels on a per square foot basis for a super-regional centre Scope to re-engineer and update tenant mix, encouraging large flagship formats and reducing supply of smaller units Potential to widen role as a family day out destination with an integrated shopping, dining and leisure offer, extending dwell time, trading hours and catchment Significant opportunities to increase the rental tone through asset management initiatives Intu is taking on the role of asset and development manager with QIC as a new major global financial partner QIC is Australia s third largest institutional investment manager with A$75bn in funds under management Page 8

9 intu Derby Investment rationale Provides attractive income return, with potential for capital growth from yield compression Modern, prime in-town centre yet to reach potential following opening of major redevelopment in 2007, shortly before downturn Scope to rebalance the proportions of retail, catering and leisure to drive footfall and extend dwell time Opportunity to reconfigure existing retail space to realign supply and demand for shop units Opportunity for ERV growth over the medium term through asset management initiatives Page 9

10 Extending reach of nationwide brand, intu Roll out started at intu Merry Hill and intu Derby Renaming and signage local press recognition on announcement Websites converted 1 May, intu.co.uk home page World class service approach training underway Wi-Fi installation scheduled for early 2015: adding to 11 intu centres already installed ownership model infrastructure and data to date 60% of intu Wi-Fi registrants opted in 9 million unique visitors per annum to intu websites driving footfall between online and physical National operational efficiencies and best practice Nationwide marketing partnerships Page 10

11 intu Watford Creating a 1.4m sq ft shopping and leisure destination Page 11

12 intu Trafford Centre Continual enhancement driving return, 250m uplift since acquisition Selected retailers joining / upsizing in the Centre No Page 12

13 Nottingham Major city centre refurbishment opportunity Nottingham has slipped from five to nine in Experian UK retail rankings underinvestment relative to other UK cities Stalemate between Victoria Centre and Broadmarsh unlocked by Intu s 2011 purchase of Broadmarsh Agreement now reached with Nottingham City Council Three projects intu Victoria Centre refurbishment and upgrade (underway) new catering offer redevelopment of intu Broadmarsh intu Victoria Centre northern extension Recent lettings Urban Outfitters, Superdry Expect major positive impact, both financially and to the customer experience, from intu Victoria Centre refurbishment Page 13

14 Intu s priorities leading change Optimise performance of existing assets through active asset management focusing on customer experience, combining retail, catering and leisure Continue to improve financial flexibility including capital recycling and introducing partners Obtaining competitive advantage from intu brand and digital presence demonstrating the benefits of scale and national coverage Seizing opportunities for profitable expansion drive forward 1.2 billion development pipeline acquisition opportunities Page 14

15 Digital & Commercial Trevor Pereira Digital & Commercial Director Roger Binks Customer Experience Director

16 A catalyst for cultural change Brand launch Page 2

17 Curating the customer journey Signature customer experience Page 3

18 Measuring our customers experience Tell intu Page 4

19 Measuring our customers experience Tell intu NPS 67 NPS 18 Page 5

20 Local & regional recognition Brand building Newcastle Evening Chronicle East London Enquirer Evening Standard Page 6

21 Delivering national reach Brand building The Independent Hello Magazine Page 7

22 Greater control with greater income Promotional area Page 8

23 That s how we scroll The connected customer Page 9

24 That s how we scroll The connected customer Page 10

25 Available anywhere, anytime, any device Digital Page 11

26 Our dynamo of growth Bringing all the elements together Asset Emerging New Retailer Demand Range & Choice Property Segments Marketing Footfall Dwell Time Customer Experience World Class Service Experiences Memorable Moments Page 12

27 Building specialist delivery teams Intu employees Page 13

28 Unity around common goals and objectives Leveraging our scale Page 14

29 intu Watford Charles Griffiths, Senior Asset Manager

30 intu Watford Key metrics Page 2

31 Watford accessibility Major Motorways - M25 and M1 Plentiful car parking London Underground station Over ground Station and Mainline Station Significant office population Page 3

32 intu Watford Asset management strategy Grow rental income and increase the value of the centre - Refresh tenant mix to meet the aspirations of the affluent catchment - 71% ABC1 - Introduce catalyst retailers and right size existing retailers - Increase catering offer to extend dwell time Create benchmark shopping experience - Modernise intu Watford s appearance - Extend intu Watford by developing Charter Place. creating a 1.4 million sq ft retail and leisure destination Page 4

33 Progress timeline 2011 Phase Eight, Lakeland and Schuh 2012 Apple and Lego 2013 a record year Next Lipsy Ernest Jones Paperchase L Occitane Boux Avenue Waitrose Ed s Easy Diner Tortilla 2014 Fat Face JD Sports Watch Warehouse Topshop/Topman Hotter Shoes Gourment Burger Kitchen Page 5

34 Activity - Charter Place August 2012 Heads of Terms agreed for the 999 year leasehold acquisition April 2013 exchanged Agreement for Lease to develop Charter Place September 2013 planning application submitted February 2014 full, detailed planning permission granted March 2014 Local Authority voted to approve the use of Compulsory Purchase powers May 2014 let the Cinema to Cineworld for a 40,000 sq ft, 9 screen cinema with an IMAX screen October 2014 CPO Public Inquiry Autumn 2015 expected start on site Christmas 2017 expected opening Page 6

35 Extension and redevelopment proposals 100 million project to deliver 1.4 million sq ft retail and leisure destination 2 level retail and restaurants - Up to 16 large units - up to 10 restaurants - Cinema and Leisure Box situated on 3 rd level Page 7

36 Charter Place redevelopment images Page 8

37 Charter Place redevelopment images Page 9

38 Post development landscape Significantly expands intu Watford s catchment as a major regional destination Watford rises to 20 th in the national retail rankings alongside Edinburgh and Bristol Page 10

39 Investment in Watford Refreshment of existing centre to ensure best in class shopping experience Other investors in Watford - Metropolitan Underground train line extension million Government grant expected to open in Local Authority - 5 million on highways improvements - Warner Brother s Studio Harry Potter and Star Wars - Watford Junction (Mainline station) Network Rail planning a significant upgrade of the station. Page 11

40 intu Trafford Centre Gordon McKinnon Operations Director Julian Wilkinson Regional Director

41 intu Trafford Centre Key metrics Page 2

42 Overview of intu Trafford Centre intu Trafford Centre - orientation Barton Square Retail Park 9.3 acres land M&S John Lewis The Orient intu Trafford Centre The Great Hall Bus station Debenhams Frankie & Benny s M60 Coach House Premier Inn Page 3 Source: Intu Properties plc

43 intu Trafford Centre: our key points of difference The creation of a sense of place Stunning architecture, water features, statues, columns, murals theatre A tourist destination The combination of retail, catering and leisure Entertainment always something going on Flagship stores and retail mix Ease of access and parking Long opening hours the evening opportunity World class customer service The customer experience enjoyment Externally - attractive landscaping, woodland areas and water features The best in safety, security, cleanliness and standards of presentation. Page 4

44 intu Trafford Centre development 1998 Centre opened 2005 John Lewis 2006 Marks & Spencer 2007 The Great Hall 2008 Barton Square 2009 Trafford Quays Leisure Village 2010 LEGOLAND Discovery Centre 2013 SeaLife aquarium attraction And to come Barton Square roof and upper level Link Bridge 4 shop units Service Yards 8 and 9 infills Page 5

45 intu Trafford Centre Key catchment & demographic statistics Large catchment area 8.9 million people live within a 70 minute drive 70 minute drive time around Trafford Centre 4.8 million within 45 minutes Total available retail expenditure of c 12bn Loyal customer base 25 times p.a. average visiting frequency 20% of visitors visit at least once per week 55% visit at least monthly Wealthy demographic (1) 66% ABC1; 61% years 69% female shoppers intu Trafford Centre Metrolink now being progressed by Greater Manchester Combined Authority 1) UK social groups A, B and C1, defined as members of households whose chief earner s occupation is professional, higher or intermediate management or supervisory Source: ResearchCraft, Experian Page 6

46 Asset management

47 Tenant mix Page 8

48 Overview of tenant mix 200+ units (including over 65 catering and leisure units); approximately 1.4m sq. ft. retail and 0.3m sq. ft. catering and leisure space over 2 levels Anchor tenants: Selfridges, Debenhams, John Lewis and Marks & Spencer Opened to public in September 1998 Significant redevelopment of main entrance for additional catering in 2007 (The Great Hall) Major 240,000 sq. ft. homeware and leisure extension (Barton Square) opened in 2008 Retailers significantly expanding in 2011, 2012 and 2013 include Marks & Spencer, Debenhams, Next, Superdry, H&M Site location Page 9

49 Catering and leisure c 310,000 sq ft devoted to catering and leisure over 50 catering units generating c 75m annual turnover themed areas - The Orient, The Great Hall adding a sense of theatre Continuous evolution with brands including Tampopo, Zizzi, Nando s, TGI, Five Guys and Carluccios An unrivalled leisure offer: Odeon Multiplex IMAX cinema, Legoland Discovery Centre, Paradise Island Adventure Golf, Laser Quest, Aerial Extreme (treetop adventure course) SeaLife aquarium opened in July 2013 Events include: Celebrity Christmas lights switch on high profile fashion shows firework displays Page 10

50 Asset management Recent asset management activity Recent openings include: Five Guys: first site in the North Victoria s Secret: one of first five UK stores Next: expansion to 40,000 sq ft via phased opening March to June 2013 Hamleys: first store in the North West opened November 2013 Forever 21: fourth UK store opened July Nespresso: first stand alone UK store Wokooshii: new concept restaurant Fat Face: new concept store Hugo Boss: expansion from 3,000 to 5,500 sq ft Page 11

51 Recent openings Page 12

52 Opportunities Page 13

53 Significant asset management opportunities Future-proofed structure Scope for asset management initiatives at intu Trafford Centre including: original structure built to accommodate additional floors enabling cost effective expansion, e.g. above Debenhams along link bridge to Barton Square opportunities to introduce MSU flagship stores through conversion of space to additional retail, subject to planning permission creation of space to enable unit reconfigurations scope for retailers to create cost-effective mezzanine floors Page 14

54 Barton Square opportunities Second storey retailing and roof Scope for asset management initiatives at Barton Square including: structure includes an additional floor enabling cost effective expansion achieved retail consent for 93,000 sq. ft. on upper level courtyard to be enclosed by glass roof to enhance environment anticipate an increase in rental tone across Barton Square Site location Page 15

55 Barton Square opportunities Page 16

56 Appendices Page 17

57 Key statistics 150 acre site, set in wider development area of 550 acres Now 2 million sq ft of retail and leisure (including Barton Square) Over 3 million sq ft in wider established surrounding complementary uses More than 30 million customer visits per year Open 7 days a week (shopping 10 till 10 weekdays, 10 till 8 Saturdays, 12 till 6 Sundays) 14,000 free parking spaces Bus station handles 550 buses a day Over 3500 coach visits per year 8,000 people employed on site (approximately 400 by intu) Average footfall increase +4% per year since opening Page 18

58 Key statistics continued 150 shops and stores, from 50 sq ft to 225,000 sq ft 60 bars and cafes offering cuisine from around the world Italian, American, Spanish, French, Chinese, Korean, Japanese, Indian, Thai, Mexican and British! Estimated annual retail turnover of c. 800 million gross (2012) Annual food/drink turnover of 90 million gross 4 prestigious anchor stores of Selfridges, Debenhams, John Lewis and Marks & Spencer only other place this combination can be found is on Oxford Street in London 7 different leisure attractions include 20 screen Odeon cinema, LaserQuest, Paradise Golf, Namco Station with bowling alley and bumper cars, Legoland Discovery Centre, SeaLife, Aerial Extreme High Ropes adventure course Page 19

59 Page 20

60 intu Merry Hill Julian Wilkinson, Regional Director

61 Contents Key statistics, rent and tenant mix Catchment Vision and business plan Strategy: improving tenant mix, ensure rental sustainability, drive ERVs Lease expiry and rent review cycles Centre plans Q&A Page 2

62 Key statistics, rent and tenant mix Valuation: 815 million (100%) Initial yield: 5.21%* Equivalent yield: 5.10%* GLA: 1.7 million sq ft total retail space, 1.4 million sq ft main covered mall Ownership: Freehold 50% ERV: 46.6 million (100%) Current income: 48.1 million (100%) Prime Zone A rents typically 150psf ITZA Anchored by Marks & Spencer, Debenhams, Bhs, Primark, Sainsbury s, Next and Asda. 7% of rental income from catering and leisure * Shopping centre only Page 3

63 Map of intu Merry Hill current rental position Key SEGMENT ERV Current income NIA Size = rent UPPER RETAIL PARK 2.0m pa LOWER RETAIL PARK ASDA 0.7m pa 2.2m pa 2.8m pa MALL 0.1m sq ft 2.6m pa 38.5m pa 0.2m sq ft 40.1m pa Page 4 2.6m pa 0.7m pa 0.1m sq ft 1.4m sq ft OFFICES 2.6m pa 0.7m sq ft

64 Catchment M6 M42 Primary + Secondary catchment M5 (1) Source: CACI Retail Footprint 2012 Page 5

65 Vision & Business Plan Merry Hill represents one of the few super-regional shopping centres Relative position has declined in recent years, presenting significant opportunities for growth Potential to be re-positioned as a day out destination over the medium term create entertainment venue to host a range of events provide a location where retailers want to have flagship stores intu Trafford Centre provides a case study of what can be achieved We believe there is significant potential to improve rental tone ahead of 2019 rent reviews focus on a number of short to medium term opportunities to re-position the centre specific actions in respect of a number of key units to create evidence for rent reviews across the scheme Working with QIC to determine detailed business plan 3 to 5 year re-positioning Potential to recycle capital from adjacent property holdings into main mall Engaging with local authority, hiring local asset management team Page 7

66 Driving growth through active management Letting strategy Improving tenant mix Sustainability with key retailers Achieving ERV on review / renewal Goal The right space at the right rent Outcome Tenant re-investment and commitment to the Centre Consistent growth in rental income Page 8

67 intu Merry Hill Significant scope to improve rental tone Relatively low rental levels on a per square foot basis for a super-regional centre (see chart) Scope to re-engineer and update tenant mix, encouraging large flagship formats and reducing supply of smaller units Potential to widen role as a family day out destination with an integrated shopping, dining and leisure offer, extending dwell time, trading hours and catchment Headline ITZA (1) psf (1) Current headline rent ITZA Annual contracted rent per square foot after expiry of concessionary periods in terms of Zone A Page 9

68 Opportunities to increase the rental tone through asset management initiatives Tenant mix significant gaps relative to other super-regional shopping centres, particularly international and aspirational names over 40 retailers trading in Bullring but not at intu Merry Hill of which over a third trade in both central Manchester and intu Trafford Centre, including Pandora, All Saints, Footlocker, Apple, Kurt Geiger encouraging flagship shopfits and reducing temporary occupiers Catering and leisure offer currently limited relative to other super-regional shopping centres only 7% of rent roll, typically super-regional centres double that level scope for additional family leisure Rental sustainability: many retailers currently trading from unsuitable locations right-sizing anchors and major space users e.g. Primark, M&S, River Island, H&M amalgamating smaller standard units Refreshing the appearance and ambience of the centre through rebranding, free Wi-Fi and improved promotional activities Page 10

69 Lease expiry and rent review profiles Weighted average expiry 7 years, rent review opportunity ,000,000 Lease expiries by year 14,000,000 12,000,000 10,000,000 Passing ERV 8,000,000 6,000,000 4,000,000 2,000, Page 11

70 Centre letting plan Page 12

71 Q&A Page 13

72 Appendices

73 intu Merry Hill Site overview current rental position Lower Mall Upper Mall PURPLE MALL 0.3m sqft psf YELLOW MALL 0.3m sqft psf ORANGE MALL 0.1m sqft 175 psf Key SEGMENT NIA Current ERV tone ITZA Notes 1 Grey circles represent zoned units GREEN MALL 0.2m sqft psf PINK MALL 0.2m sqft psf BLUE MALL 0.2m sqft psf FOOD COURT 0.1m sqft Page 15

74 intu Derby Martin Breeden, Regional Director

75 Contents Key statistics, rent & tenant mix Catchment Derby Vision and Business Plan Expiries Centre Plans Gap Analysis Q&A Page 2

76 Key statistics, rent & tenant mix Valuation: 390 million Purchase price: million Initial yield: 6.89% Equivalent yield: 6.45% GLA: 1,300,000 sq ft Ownership: Freehold: 100% ERV: 28.1 million pa Current Income: 30.5 million pa Prime Zone A rents typically 110 psf ITZA Well anchored: Debenhams, Marks & Spencer, Boots Good fashion mix Excellent cinema and good catering offer Page 3

77 intu Derby Catchment M1 Primary + Secondary catchment (1) Source: CACI Retail Footprint 2012 Page 4

78 intu Derby Specialist Engineering heartland: Rolls Royce (12,000 employees in East Midlands), Toyota (3,500 employees), Bombardier (1,600 employees), Delta Rail, Balfour Beatty and Tracsis The strong job market, combined with the low cost of living, means that the population of Derby has a greater disposable income than cities of a comparable size Page 5

79 Vision & Business Plan Opportunity for ERV growth over the medium term through asset management initiatives including - Continue to evolve fashion offer and tenant mix - Adding restaurants in the upper level to provide a further draw in the evening and support cinema trade - Reducing the number of short term lets - Reducing the disparity in appearance and rents between the older and the redeveloped areas Active role in improving city centre Page 6

80 Driving growth through active management Letting strategy Improving tenant mix Sustainability with key retailers Achieving ERV on review / renewal Goal The right space at the right rent Outcome Tenant re-investment and commitment to the Centre Consistent growth in rental income Page 7

81 Asset Management Gap Analysis Page 8

82 Inside intu Derby Lease Expiries Lease Expiries By Year 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 Passing ERV 3,000,000 2,000,000 1,000, Page 9

83 intu Derby Headline ITZA (1) (1) Current headline rent ITZA Annual contracted rent per square foot after expiry of concessionary periods in terms of Zone A Page 10

84 intu Derby Letting Plan Level One Page 11

85 intu Derby Letting Plan Level Two Page 12

86 Q&A Page 13

87 Raising the bar for retail in Nottingham Mike Butterworth Chief Operating Officer Martin Ellis Construction & Development Director

88 Raising the bar for retail in Nottingham intu Victoria Centre City Heart intu Broadmarsh Page 2

89 Current position intu Victoria Centre Valuation: 306 million Initial yield: 4.7% Equivalent yield: 6.6% GLA: 981,000 sq ft Ownership: Freehold 100% ERV: 24.2 million Current income: 17.6 million pa Prime Zone A rents typically 210 psf ITZA Anchor stores John Lewis, House of Fraser, Boots, Topshop, Next Page 3

90 Nottingham City Centre The simplicity and power of the diagram which has historically underpinned Nottingham s retailing status HoF intu Victoria Centre (anchor) JLP Old Market Square Lace Market intu Broadmarsh (anchor) Page 4

91 intu Victoria Centre - history First covered shopping centre in UK, opened in 1972 Built on the site of original Victoria train station Retained Grade II listed Clock Tower Refurbished and extended in m remodelling commenced 2014 Built, owned and managed by the Group throughout 23m per annum footfall Page 5

92 intu Victoria Centre Page 6

93 The retail proposition in Nottingham 2007: Nottingham was ranked fifth in the Experian UK retail rankings report Today: Nottingham is at No 9 in the rankings: still ahead of Leicester & Liverpool Significant development projects at both the Victoria and Broadmarsh Centres were promoted over many years The Broadmarsh Centre was largely occupied by temporary lets in anticipation of a significant redevelopment project Major investment stalled at both centres pending resolution of the uncertainty In 2011 Intu unlocked the stalemate by purchasing the Broadmarsh Centre from Westfield Discussions then commenced with Nottingham City Council to agree a way forward for the whole city Page 7

94 The way forward for Nottingham city centre Agreement with Nottingham City Council has now been reached on an appropriate way forward It is recognised and understood that the two shopping centres must complement rather than compete with each other Improvements and upgrades to both shopping centres are required Upgraded city heart: High quality, good public realm, streets based café culture Intu Victoria Centre extended, refurbished, upgraded: Mainstream & aspirational fashion Upgrading of the city centre forms an integral part of the whole Nottingham strategy Intu Broadmarsh extended, refurbished, upgraded; Specialty Retail, new leisure, dining, food and convenience shopping Page 8

95 The opportunity for both centres Page 9

96 A three stage plan One: Refurbishment of intu Victoria Centre Page 10

97 A three stage plan One: Refurbishment of intu Victoria Centre Two: Redevelopment of intu Broadmarsh Page 11

98 A three stage plan Three: intu Victoria Centre northern extension One: Refurbishment of intu Victoria Centre Two: Redevelopment of intu Broadmarsh Page 12

99 1. Refurbishment of intu Victoria Centre Started Feb 2014 Intu Victoria Centre refurbished and upgraded: Mainstream & aspirational fashion Page 13

100 Designs Central Square Mall Halls Existing Existing Proposed Proposed Page 14

101 Designs Lower Parliament Street Entrance Clock Tower Entrance Existing Existing Proposed Proposed Page 15

102 New catering offer Twelve new restaurants more than doubling the proportion of rent from catering operators Split over two floors External seating areas Adjacent to listed clocktower New escalator link Able to trade out of centre trading hours Lower Mall Upper Mall Page 16

103 Programme Q Q2 - Q Board approval to take to contract procurement - Progress detailed design and submit planning application (Q4) Q Q Procure contract and obtain planning consents Q Start on site Q Main refurbishment works complete Q Catering units complete Page 17

104 intu Victoria Centre Driving returns from the refurbishment A full refurbishment of the malls will make it easier to attract new and retain existing tenants Examples include recent lettings to Urban Outfitters and Superdry A refurbishment will reinforce intu Victoria Centre as the prime retail pitch in Nottingham The centre will be capable of being traded beyond its current hours of 9am to 6pm The clocktower refurbishment works will add to and complement the existing café and limited casual dining offer The result of the refurbishment will be a material increase in rental tone..and an increase in property valuation Page 18

105 2. Redevelopment of intu Broadmarsh Planning application early 2015 Intu Broadmarsh extended, refurbished and upgraded; Specialty Retail, new leisure, dining, food and convenience shopping Page 19

106 2. Redevelopment of intu Broadmarsh Upgraded mall graphic Page 20

107 2. Redevelopment of intu Broadmarsh Public consultation under way Page 21

108 3. Northern extension of intu Victoria Centre After intu Broadmarsh development Intu Victoria Centre extended by half a million square feet at the Northern end Page 22

109 3. Northern extension of intu Victoria Centre Planning application issued in 2010 Resolution to grant an 8 year planning consent issued by NCC in April 2014 Agreement of the S.106 imminent Page 23

110 And it doesn t stop there Lower Parliament Street pedestrianisation Page 24

111 Public realm improvements to Clumber Street Page 25

112 Nottingham-wide improvements by others Railway station upgrade Tram system Phase 2 extension A453 dualling Trinity Square upgrade 24m transformation Page 26

113 Questions Page 27

114 Appendices

115 Super-regional centres Page 16

116 Top in-town centres Page 17

117 In-town centres 11 intu Milton Keynes Page 18