SES Spar European Shopping Centers

PRESS

20.03.2019
2018 SES Résumé: Sales Increase Despite Refurbishments

Quality Initiative and Expansion Policy Result in Success

Murpark mall

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The 2018 financial year was very successful for Austria's largest shopping center operator, SES Spar European Shopping Centers. More than 1,700 retailers at 29 locations in six Central European countries generated sales revenues of EUR 2.76 billion. This is equivalent to an increase of +2.6% compared to 2017. In total, more than 108 million people visited the SES centers in the previous year (+1%). This was achieved despite large-scale refurbishments at three locations. A total of 57 million euros was invested in the modernization and further development of centers. An additional 150 million euros was injected into a new project in Ljubljana. In total, more than 200 million euros were made available for investments in new buildings, expansions, and refurbishments in 2018.

 "Granted: Industry conditions are challenging – for retailers and operators alike. The reasons behind the successful development that our company enjoyed last year stem from the selection of our shopping partners and the consistent quality initiatives through which we ensure that our locations remain attractive," says Marcus Wild, CEO of SES Spar European Shopping Centers, explaining the company's success.
 
"Another factor in our success is our expansion policy, on which our partners can rely: We execute projects, but not immediately and not at any cost. We strive to introduce the best centers to the market and take the time to do so," says Marcus Wild.

SES CEO Wild: "Our recipe for success: Never be boring!"
"Our focus is on mixed use and experience: Ideally, we aim to offer our customers everything that they need in one place – well-being, gastronomy, shopping, leisure, work, living – and an urban attitude to life that they can never get enough of. As experience centers, our centers are designed to be at the forefront of services, events, mall promotions, and social media."

Top 3 Centers in the 2018 SES Revenue Growth Ranking for Austria
The Austrian centers managed by SES generated retail sales of EUR 1.88 billion in 2018, an increase of 1.2%. Growth leaders among the SES centers included HUMA ELEVEN (Vienna), which was expanded in 2017, posting a 17.4% increase in sales, followed by inner-city center WEBERZEILE Ried (Upper Austria), which posted a 5% increase, and MURPARK Graz, which posted a 3.1% increase (excluding expansion). FORUM 1 (Salzburg) reported growth of 1.2%. The remaining SES centers showed a slight increase over the previous year or stable development at a high level in 2018. SES operates 19 shopping locations throughout Austria, including its managed shopping street in Vienna Aspern.

Top 3 Centers in the 2018 SES Revenue Growth Ranking by Country
In the 2018 financial year, SES also performed well in neighboring countries. Overall, shops generated a 5.9% increase in sales at the 10 SES locations. The growth leader among the Slovenian centers was EUROPARK Maribor, which posted a sales increase of 4.7%. In Hungary, sales at KORZÓ in Nyíregyhazá increased by 9.0%, and they grew by 1.6% in the Czech Republic.

The "Zehner" Shopping Center Voucher Posts a 3.4% Increase in Revenue
Sales of the SES cross-center voucher, the "Zehner", which is valid at 12 Austrian SES centers, and the "Desetak" voucher, which is valid at the four Slovenian centers, increased more substantially from 2017 to 2018, specifically, by 3.4%. In 2018, a total of EUR 36 million of the popular "currency" was sold, of which around EUR 1.1 million was sold via the online portal www.derzehner.at. During the Christmas season, sales rose by 7.4% year-on-year.

29 Operational Management Locations
In 2018, SES expanded its center portfolio into Croatia and took over the center management of KING CROSS, an established shopping center in Zagreb-Jankomir, which has been largely owned by SES since 2017. SES concluded its management of one location in Hungary, ALLEE Center, on 31 December 2017. In 2018, SES agreed to institutional investor Nuveen Real Estate acquiring a 50% stake in WEBERZEILE shopping center (Upper Austria). Despite the strategic joint venture partner holding half of the shares, SES will retain all center and asset management functions.

New Brands: Primark Expands into Slovenia via SES
In 2018, SES introduced new brands to the Slovenian market: Contracts were signed with coveted fashion chain PRIMARK concerning its entry into the Slovenian market: The long-awaited popular Irish retail company is set to open its first shop in the country at CITYPARK Ljubljana in the summer of 2019.

The LPP Group, one of Poland's largest fashion suppliers, opened its first Slovenian RESERVED store at CITYCENTER Celje at the beginning of September 2018.

Further redevelopment initiatives to enhance successful locations
Three existing centers – MURPARK Graz and Slovenian locations CITYPARK and Center Vič in Ljubljana – were expanded or rebuilt in 2018 without interruption to operations. Approximately 60 million euros alone was invested in the modernization and further development of the following locations:

Over 30 Million Euros Invested in MURPARK Expansion
SES consistently engages in the redevelopment of its locations. A recent example in Austria involved the 2018 opening of the 6,500 sq m expansion at MURPARK in Graz, which comprises 19 new shops. MURPARK first opened in 2007. Since the opening of its expansion in August, the center has covered an area of more than 43,000 sq m, offering a premium mix of retail, food and beverage, and service outlets. The gastronomy share of the center has increased to 10%, thus reflecting the international trend.

The turnover of the more than 90 shopping partners at the Center in Graz increased by 7.5% from 2017 to 2018. Even the shops that were part of MURPARK prior to the expansion generated a total sales increase of 3.1%, thereby outperforming the Austrian retail sector (http://www.statistik.at/web_de/presse/120436.html).

In addition to new shops, significant shop renovations also took place: Kastner & Öhler, featuring a fresh store design, relocated to a new area on the ground floor. Geox, McShark, Café Cappuccino, and INTERSPAR Restaurant introduced new store designs. Austrian Post also opened a larger space in the extension area. Among the SES centers, MURPARK is a prime example of continuous, reliable growth and customer friendliness.

More Than 20 Million Euros Invested in the Renovation of CITYPARK Ljubljana
In the Slovenian capital of Ljubljana, reconstruction of CITYPARK advanced significantly. Slovenia's largest shopping center in Ljubljana underwent extensive refurbishment in 2018. The mall, which centers around its strong anchor tenant, PRIMARK, due to open in 2019, and the entrances to numerous shops and restaurants were redesigned. Approximately 20 million euros was invested in the location.

7-million-euro Modernization of CENTER VIČ Ljubljana
In Ljubljana, the INTERSPAR local supply center in the district of Vič was completely renovated from March to September, without interruption to operations. Following complete renovation, it features a modern design, attractive interior design, an adventure zone with a fountain, and a Mini-Lollipop indoor playground.

New projects: Focus on mixed use and city centers
SES envisions the future of shopping centers at mixed-use locations that combine not only shopping, but also theme-based gastronomy, leisure, culture and, ideally, hotels or offices. This is particularly true for inner-city locations. As a result, all SES developments are designed to accommodate these combinations as much as possible.

150 Million Euros Invested in District Center in Ljubljana Šiška
In addition to further developing existing locations, SES is also currently planning and building retail properties at new locations: SES is constructing a new shopping center in Ljubljana, in the middle of the northern district of Šiška. In addition to an optimally coordinated mix of retail, gastronomy, and services, the center will also focus on sports and leisure activities. A pump track in front of the building, a food court beneath a huge glass dome, and an activity roof with a volleyball and basketball court, fitness course, and running track will be completed in addition to 32,000 sq m of retail, gastronomy, and service space as well as 90 shops. Demand for shop space is high: 90 percent has already been leased.

The shopping center is currently regarded as Slovenia's largest building construction project. In 2018, the underground parking garage and major parts of the shell were completed. Installation of the building services and facade began in 2019. 80,000 cubic meters of concrete and 12,000 tons of structural steel alone were processed. Completion and opening are planned for spring 2020.

Development of an Inner-city Quarter in Lienz
In the city center of Lienz, SES is developing a shopping quarter with a leasable retail area of approximately 10,000 sq m, 20 shops, and an adjacent hotel that offers 75 rooms.

Managed Shopping Street in aspern Seestadt Continues to Grow
SES operates a managed shopping street in the aspern Seestadt district of Vienna and, as a partner of the City of Vienna, is responsible for developing the segment and shop mix for the major parts of this Euro-pean flagship urban development project. When the Seepark quarter is completed in 2019, it will cover approximately 7,000 square meters of leased space and include 28 shops.

Children's Play Areas Opened at Additional Locations
Planet Lollipop's seven SES Children's World locations for children aged three and over continue to enjoy great popularity. The Mini Lollipop format for children from zero to four years of age, introduced in 2016, was expanded in 2018 to include additional locations. The popular indoor play zones are currently available at 11 SES centers in Austria, Slovenia, and Croatia.

SES Serves as Partner for Start-ups and Innovative Ideas in 2018
In 2018, SES once again successfully served as an Austria-wide partner for imaginative young entrepreneurs: ORGANIC Warehouse, a store for sustainable and organic products, opened at EUROPARK Salzburg. Unique feature: The entire interior is 100% recyclable.
At HUMA ELEVEN, you can find products by young designers, small manufacturers, startups, and family businesses from 11 European countries at a store for creative gift ideas called "Darf ich bitten?".
Hobek Musik at FISCHAPARK offers a wide range of high-quality musical instruments. The store focuses on services such as tuning pianos, repairing instruments, and renting sound and lighting equipment.
SILLPARK Innsbruck served as the starting point for "Das Konzept" – an amalgamation of five young start-ups at one common site.

SES Has a Workforce of 371 Employees
SES employs a total of 371 people in six European countries. More than 80 people work at the corporate headquarters in Salzburg-Kasern alone. In addition, SES shopping center locations provide jobs for a total of approximately 18,000 people in the retail, gastronomy, and service sectors.



SES Spar European Shopping Centers

SES is a developer, builder, and operator of shopping centers in six countries. The company currently manages 29 shopping locations in Central, Southern, and East-ern Europe. The leasable area amounts to 790,000 square meters. SES is the market leader in Austria and Slovenia for large-scale shopping centers. In 2018, tenants at SES locations generated gross sales of 2.76 billion euros. SES also offers its know-how in the areas of project development, construction manage-ment, leasing of shop space, as well as center and facility management to external owners of shopping malls right from the outset. SES centers have already received several national and international awards for architecture and design, sustainability, traffic flow concepts, and innovative marketing. SES is part of the SPAR Austria Group.

More information is available at: presse.ses-european.com, www.ses-european.com.
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Claudia Streitwieser-Schinagl
Head of Public Relations

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