Strategy

Klépierre’s dual positioning – in the universes of real estate and retail – makes the Group a player of the first rank in the European retail property market.

In the course of the last decade, as Klépierre has expanded through a series of acquisitions and major developments – this positioning has become even stronger.

A pure player in the shopping center segment

With holdings valued at 22.1 billion euros, 100% comprised of retail property assets, Klépierre is, more than ever, one of Europe’s most important pure players in retail.

Offering a recurring and secure source of revenues, this segment has consistently shown its resilience to economic cycles. Since 2012, the Group has reinforced its strategic refocus on leading shopping malls on their catchment area: 1.3 billion euros of assets disposed in 2012-2013 and disposal of a portfolio of Carrefour-anchored retail galleries for a total amount of 2.0 billion euros in April 2014.

The acquisition of Corio, allows Klépierre to strengthen its positions in France, in Italy and in Spain and widens its European coverage to three additional countries: the Netherlands, Germany and Turkey. The value of the combined entity is 22.1 billion euros (excluding duties, as of December 31, 2015).

Located in Europe’s most dynamic regions

Klépierre has identified priority consumer catchment areas across continental Europe on the basis of specific criteria including demographic growth, GDP, and purchasing power. In all, 80% of the Group’s revenues are generated by regions that show the greatest potential for consumer spending growth. Most are located in France, in Scandinavia, and in Northern Italy. In these regions of high population and growth, the Group generally has dominant assets – i.e., retail facilities that lead their catchment area and that are sought after by the biggest retailers – and smaller local convenience malls that serve as genuine clusters with regional drawing power.

A key partner for leading retail distributors

With a broad platform spanning Europe, locations in 16 of the continent’s countries, and 1.2 billion visitors to its shopping centers each year, the Group offers retailers unrivalled development leverage and the opportunity to reach another 150 million consumers. Over the years, Klépierre has succeeded in building strong, trust-based relationships with leading retailers across Europe and today ranks among their preferred partners, sharing both a long-term vision and the capacity for innovation.

For these consistently dynamic and adaptable retailers, the Group is poised to offer new space in the centers it develops, refurbishes, or extends. Its Europe-wide coverage also enables the Group to identify innovative concepts that could be deployed with success on a larger scale, in a win-win process of cross-fertilization.

With expertise in creating leading shopping centers

Klépierre is one of the few players to have achieved mastery over the entire shopping center creation chain, from the identification of the ideal location to construction and facility management. Klépierre’s Scandinavian subsidiary, Steen & Strøm, in which the Group acquired a controlling interest in 2008, offers the same breadth of expertise. Over the years, the Group has used this expertise to build a broadly diversified portfolio that is high in both quality and performance. In addition to ensuring complete control over projects, this development strategy guarantees a more competitive cost price than the acquisition of existing sites would and ultimately leads to higher profitability.

Accordingly, Klépierre develops unique shopping centers, from an architectural as well as a commercial marketing perspective, which reflect both a strategic plan devised individually for each asset and the Group’s determination to ensure that each facility is highly profitable.

 

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