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The Future of Fashion Retail

Insight Summit — CEEQA@Mapic, 20th November 2014

Footfall rents the future?

  • Panelists
    • Mariusz Kozlowski, Member of the Management Board, GTC

      With GTC since 2000, Mariusz has been a member of GTC`s management board since 2002, currently as International Retail Director. He formerly held positions of Leasing and Marketing Director and Investor Relations Director. Between 1994 and 1996 he served as Marketing Director at DML brokerage, and from 1997 to 1999 he was Head of Equity Sales at ABN AMRO Securities S.A. in Warsaw.

      Mariusz holds a Master of Economics degree from the Warsaw School of Economics and is a licensed stockbroker.

    • Mark Barrett, Partner, EMEA Cross Border Retail, Cushman & Wakefield

      Mark has worked in the retail team at Cushman & Wakefield for 8 years, joining Cushman & Wakefield in April 2006. Mark specialises in cross-border retail activity for Cushman & Wakefield across Europe, the Middle East, North America and emerging markets. Mark works closely with his European colleagues and Partners to assist retailers acquiring their first international stores and to help young and established retailers to expand into new territories and regions. Mark represents many international retailers including Superdry, Asics, Calzedonia, Puma and JD Sports.

    • Matyas Gereben ., Head of Asset Management, Trigranit Development Corporation

      Matyas joined Trigranit in 2007 as Leasing Director of Offices on the Emonika project in Ljubljana, after which he was appointed to head up the Property Management team of Polus Shopping and Entertainment Center Budapest. After two successful years in Polus Matyas was promoted to lead the Asset Managment Department within TriGranit and look after the company’s portfolio through the CEE region. Currently he is responsible for monitor the performance of four shopping centers and nine office buildings with the total GLA of approximately 400.000 sqm.

      Matyas began his real estate carrier with Cushman and Wakefield Property Advisers as Leasing Associate and looked after major corporate instructions both on the tenant and Landlord side.

    • Otis Spencer, President, Peakside Polonia Management

      Otis was hired in September 2013 as the President of the Board of PPM. He is responsible for the asset management for Polonia I and Polonia II, the origination and execution of new business in Poland, as well as the managerial oversight of Peakside’s office in Warsaw. He has over 20 years of experience in the real estate industry and has executed transactions and functioned as a fiduciary in North America, Europe and Asia. He was until recently the Co-Head/Managing Director of KSP Real Estate Investment Management. From 2005 to 2012, Mr. Spencer was active as Managing Director/Co-Head Europe and member of the Investment Committee with Heitman. During this time he directed the Portfolio Management for Heitman’s European Private Equity group and was the Portfolio Manager for Heitman European Property Partners IV. In addition to his portfolio management responsibilities, Mr. Spencer was active in originating transactions and capital raising efforts as well as contributing to the strategic development of Heitman’s European platform.

      Prior to Heitman, Otis worked for ABP Investments (“ABP”) in the Netherlands where he was a Senior Portfolio Manager. In this capacity, he was responsible for sourcing, structuring and managing non-listed real estate investments on behalf of ABP’s European and Asia Pacific Strategic Funds. During his time at ABP, Mr. Spencer identified and completed ABP’s first real estate private equity investments in Central Europe and Asia. Otis graduated from the University of California Berkeley with a master’s degree in business administration with a concentration in finance and real estate. He also has master’s degree in real estate designation from the Universiteit van Amsterdam. Mr. Spencer holds a dual citizenship from the Netherlands and the United States, and is based in Warsaw, Poland.

    • Peter Todd, Partner, Resolution Property

      Peter joined Resolution in 2007 to focus upon their existing retail portfolio, source new investments and joint ventures. Resolution was formed in 1998 and is set out to invest in the UK and European commercial property with potential for improvement, and is a Partner of the company. He was previously Managing Director and Head of International for the Mills Corporation a US shopping Centre REIT and ran their European Portfolio, former to this he was the Director responsible for the retail business in Europe of Jones Lang LaSalle, having joined Jones Lang Wootton as a partner in 1997.

    • Walter Woelfler, Head of CEE Retail, CBRE

      As head of Retail for CEE, Walter is in close collaboration with all retail resources of CBRE in more than 10 countries (from Austria to Russia, from the Baltics to Serbia). His task is to develop and secure an integrated and comprehensive offer to CBRE´s clients in the region. Walter has accumulated more than 25 years within the retail and retail property profession. Walter has managed and supervised substantial retail developments in Austria and the CEE-region. On behalf of internationally renowned retail brands, Walter has closely worked on their retail strategies across the CEE. Based on his comprehensive understanding of the retail business as a whole, he is ensuring that our retail client´s property strategies are successfully aligned with their business objectives. He is a recognized and respected professional within the CEE retail community and thus considered as a trustworthy partner for many of the relevant landlords and retailers in the region.

  • Moderator
    • Richard Hallward, Founder & Managing Director, CEEQA & Imagine Live Media

      Richard is founder and Managing Director of CEEQA and owner of its operating company Imagine Live Media. CEEQA is the leading market insight platform and main industry awards for commercial real estate investment in Central & Eastern Europe and Southeast Europe established in 2003, produced in association with Deloitte.

      He has nearly 30 years experience creating and leading high profile productions and live media assets across business, arts/culture and entertainment sectors in UK, France, USA and Eastern Europe working with international business leaders and organisations, including 16 years in European real estate. He is also a partner in Warsaw Creatives, a market leading agency in fashion production, PR, branding, events, talent management and creative services with offices in Warsaw and London.

Online fashion an opportunity not a threat for retail landlords as footfall and dwell time become king.


Online fashion is an opportunity not a threat for shopping centres in New Europe and internationally, according to regional and international real estate leaders meeting at the CEEQA@ Mapic insight summit at the Mapic global real estate fair in Cannes this year to discuss The Future of Fashion Retail in New Europe. The advantages of additional footfall driven by m-commerce as well as click&collect and in-store returns stemming from online fashion will in the future outweigh the pitfalls of the digital revolution for retail landlords, as long as rents can be linked to footfall as well as tenant turnover in the future.

A panel of some of the sector’s most active investors, developers and consultants discussed how the challenges of capex investment in repositioning centres to leisure and entertainment destinations, combined with sales lost to online retail and a need to realign tenant expectations and relationships in the new retail environment, will pay back over time.

Income growth in many centres, the panelists agreed, will come increasingly from alternative income streams driven by impulse sales both in-store and in-centre, fuelled by ever higher numbers of online fashion retail customers being channeled back onto the shop floor by retailers wishing to curb the high operational cost of purchase returns – a trend which poses a short term revenue headache for landlords with turnover rents but which is the key to future income growth from footfall driven alternative income streams such as mobile retail, pop-up concepts and kiosks.

Leading developer GTC’s director of international retail, Mariusz Kozlowski, and TriGranit’s head of asset management, Matyas Gereben, even floated the idea of ‘footfall rents’ or ‘footflow rents’ replacing turnover rents in the future, an idea welcomed by investors Otis Spencer of Peakside Capital and Peter Todd of Resolution. However some smaller centres with a more narrow tenant mix could fail to make this new model work. Walter Woelfler, head of retail in CEE for CBRE noted that it is fashion brands that are primarily driving the omni-channel experience and while the idea of footfall rents could be a logical step into the future and the discussions inevitable, the implementation could be challenging, while Mark Barrett, a partner in EMEA cross-border retail with Cushman &Wakefield noted that most retailers are not comfortable with footfall calculations.

From the developer’s point of view, Matyas Gereben said:

“It requires a different math when we start to calculate ROIs because we’re talking about centre experience and increasing dwell time, today leisure-entertainment is averaging 8-9% [of space] in the shopping centre, in the future it will have to go up to 20-25% but leisure retailers don’t pay rent so you have to calculate where you’re going to bring back what you’ve lost on rent – the question is whether it’s going to move to footfall rents or if we’re going to change the whole math.”

But despite the investment challenges, investor as well as tenant demand for dominant retail assets remains strong across Europe, including in the New Europe markets.

New Europe Cocktail & launch of 2015 CEEQA award entries

This year’s first ever CEEQA@Mapic event also hosted a business mixer following the insight summit and announcement of the call for entries for the 2015 CEEQA Awards including the year’s award categories, jury, judging and event itinerary. Online entry forms are now available, entries close on 20th January 2015.

6L1A6406The event hosted the launch of the 2015 CEEQA award entries including announcement of the awards judging itinerary and 2015 JuryCEEQA@Mapic was organised in partnership with Mapic as the focal point for the CEE and SEE property markets at the largest annual global retail real estate fair.

The insight summit builds on CEEQA’s previous work on regional capital flows and investment trends in European and New Europe commercial real estate as well as the unparalleled market impact of its Insight Summit series over the past decade.

Both events were free access for Mapic registered delegates.


Cee Markets:

Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia, Ukraine

See Markets:

Albania, Bosnia & Hercegovina, Bulgaria, Croatia, Kosovo, Macedonia, Montenegro, Romania, Serbia, Slovenia

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