Steen & Strøm Scandinavia’s leading shopping centre company with a clear focused on development, operation and ownership Our vision is to enrich modern.

Steen & Strøm

• Scandinavia’s leading shopping centre company with a clear focused on development, operation and ownership

• Our vision is to enrich modern shopping and provide added value to :

> Leaseholders> Visitors> Owners

• Steen & Strøm is owned by the french Klepierre and the Dutch Pension Fund ABP

• Klepierre are Europe's second largest shopping center enterprise• Klepierre is represented in 13 countries, have 376 centers - 276 in own

portfolio

The Klepierre Group

Steen & Strøm in figures

• 44 shopping centre in NO, SE and DK• More than 900.000 m2 and 3,300

leaseholders• 145 mio. visitors each year• Shopping centre turnover of € 4,5 billion• Operating income:  € 337 mill. in 2010. • Operating result: € 37,4 mill. in 2009. • Book equity Steen & Strøm AS

€ 1.009 million in 2010• 13 shopping centre Projects

New Projects

.. and Odense in 2014

Retail Leases and their Diversity

The Steen & Strøm Rent Models

• The Fixed model> Basic rent = market level in the center

• The Flexible model - with security for Landlord> x% of total gross sales (ex VAT) combined with a minimum rent

• The Flexible model - with security for Tenant> Lower basic rent + additional turnover dependent rent at X % above x.x mio. DKK

• Flexible model with ”planned” security for Tenant (Staircase model)> x% of total gross sales (ex VAT) with rising minimumrent

• + Service charges• Indexation, NPI, min. 3%• Rent models can be combined with introduction discounts (1 – 3 year)• …

The Turnover dependent rent

• In contracts defined as: • Gross sales comprise total amount of sales and leasing of goods

and/or services effected in or from the Leased Premises, including telephone, Internet and mail order sales, on both a cash and credit basis.

• Increasingly demand from retailers• Almost all contracts/projects in today market is turnover

based> Introduction period> Non terminable period

• 80% of contracts from 1980 – 2000 is Fixed base rent

But what about online sales?

• The on-line sales is growing rapidly!• Consumers shop on-line globally 24/7/365• How severe is the shift from

Bricks to Clicks and from Shop to Showroom?

• Is turnover depended rent still making sense?• Can the concept of RENT LOAD still be used as a

benchmark?

We believe that..

• That consumers are attracted the best marketplaces• The succesfull and well operated marketplace is

attraktive to consumers and retailers• A marketplace full of showrooms is also generating footfall

and creating synergies to the traditonal (”old fashioned”) buying

• Cross Channel strategies must be supported by landlord - not the opposit

• The tools and rent models are in place, but …• A readiness for adjustments can be necessary

Tak for opmærksomheden

Søren Soelberg, Leasing Director - Steen & Strøm Danmark+45 41 900 222 - [email protected]