INFORMATION MEMORANDUM

OF A NEW GENERATION

PT Surya Pajintan
 mall of borneo

table of contents

Table of Contents 03
Executive Summary 04
Elevator Pitch 05

MARKET SNAPSHOT 06
Global Retail Trends 08
The Asean Market 09
The Indonesian Market 10
Retail Sales in Indonesia 12
GROWTH THROUGHOUT THE COUNTRY 14
INDONESIA RETAIL REPORT Q3 2015

BMI RESEARCH Pontianak – Key Facts

BMI View: Indonesia is home to the fourth
largest population in the world and possesses
one of the fastest growing economies in the
world. Total household spending in the world’s
largest Muslim country will grow annually by
10.16 % on average over our forecast period.
As a result, retailers increasingly perceive the
country as a lucrative investment destination.
Nevertheless, the number of foreign retailers
remains somewhat limited with local
Indonesian brands playing an important role
in the competitive landscape.
A robust economic backdrop prevails in
Indonesia, despite a slight slump in domestic
consu1mption. For 2015, we forecast real
GDP to remain steady, with growth of 5.5%
expected and we believe this will increase
to 6.3% in 2016. While we believe the
Indonesian economy shows signs of resilience
over the coming years, pressures still exist
owing to lower global commodity prices as
well as weakened demand from major trading
partners such as China. Nevertheless, the
RECOMMENDED DEVELOPMENT – surrounding
country is positioned to experience steady
growth in household spending, which we are
forecasting to increase from USD512bn in
2015 to USD819bnin 2019. This represents
an impressive average annual growth rate of
10.16%.
retail centre potential – mall of borneo 30
“A major geographic shift is
taking place in Indonesia’s retail
landscape, with the centre of
attention increasingly moving
from Greater Jakarta and Bali’s
main tourist areas to regional
capital cities across the country”
pontianak
kalimantan barat province
16
18
20
KALIMANTAN ECONOMIC CORRIDOR 20
Population – Growth 21
Population – Age Groups 22
Gross Regional Domestic Product 23
Consumption & Income 24
Household Prosperity 25
areas 26
Competition Map 28
Retail Centre Supply 28
Competing Retail Centres 29
Rental Rate & Occupancy 29
Retail Catchment Area of Mall of Borneo 32
Target Market and Development Concept 33
Price Correlation Analysis 34
Market Positioning Analysis
(Retail Centre-Lease) 35
Market Share Analysis 36
Assessment of Retail Space Demand 36
Retail Assumptions 37
Retail Space Demand of The Existing CBD
Ciledug Mall 37
Concept Guide 38
Current tenant Overview 39
The Location in Pontianak 40
Surrounding Developments 41
Site Connectivity 42
Site surroundings 42
The Management Team 43
Professional Partners 44
The Investment Opportunity 45

03
 INFORMATION MEMORANDUM OF A NEW GENERATION
EXECUTIvE SUMMARY
VISION
To be the model of innovation and excellence for
mixed-use developments, social entrepreneurship, and
environmental sustainability.
MISSION
To responsibly deliver integrated leisure and retail
solutions to the populous in Indonesia through the
delivery of world leading arcitectural developments,
and to be a driver of innovation in the leisure and
business enviroments of the region
04
mall of borneo
ELEVATOR PITCH
PT Surya Pajintan has a proven track record of bringing commercial projects from
concept to implementation on time and on a commercially successful basis.
The principles of the company are well renowned The province is home to a population of 4,546 million
business people with strong local roots in Pontianak and (2014) with the two largest population areas being Kota
have proven record in respect of development projects Pontianak with 575,843 people and Kubu Raya with
within Indonesia. 518,803 people.
The Mall of Borneo mixed-use development at Pontianak currently only has one modern shopping
Pontianak will be the focal point for the city and catalyst mall, Ayani Mega Mall, opened in 2005 it is the only
to drive further urbanisation for the surrounding areas. integrated mall in the city.
Pontianak is the capital city of West Kalimantan, it has Mall of Borneo will surpass any current facilities in
an international airport connecting directly to other the province and provide a destination for multiple
Asian countries and for internal flights within Indonesia, activities in addition to the retail shopping experience.
being a 1hr 20 minute flight time to Jakarta.
The West Kalimantan Province consists of 12 regencies
and 2 Municipalities covering a total area of 146,807Sq Km.
Leisure and F&B Retail Solutions
Experiences
VALUES
• Responsible and committed to the mall of
borneo
local environment and population
• Committed to the delivery of family Hotel and
values in the retail experience Business Park Business Meeting
Units Facilities
• Innovation
• Social responsibility and enhancement
“Clients will be able to experience unique events in a
safe and rewarding environment – allowing different
experiences across the development but with a
common core of quality and feeling of belonging
through an ability to communicate...”
05
 INFORMATION MEMORANDUM OF A NEW GENERATION mall of borneo

Market
Snapshot
The following section has been included
in order to provide background to
the global and regional markets and
their opportunities. Additional data is
provided on the Indonesian specific
market and government focus.

06 07
 INFORMATION MEMORANDUM OF A NEW GENERATION
GLOBAL RETAIL TRENDS
Retailing is one of the major economic sectors of the world. Within the sector
there is a scale polarisation at both the business and the store level. The leading
retailers are huge, multi-national businesses which dominate the sector. They
operate a range of stores from major hypermarkets and supercenters through to
small convenience stores.
Personal income, consumer confidence, and interest
rates drive demand. Retailing is also significant it its
social dimension as well. Whilst economically retailing
bridges production and consumption, in social terms it
effects most of the population every day. It is the rare
person who does not go shopping, or indeed has not
worked in retailing or been involved in it in some way.
For some, retailers offer their major social intercourse
of the day or week and act as a social network, setting
or center.
The term retailing is however changing, both in
horizontal and vertical terms. Traditional product
boundaries have altered and strict lines of business
have dissolved. Retailers have also extended their tasks
to encompass the supply chain and intermediaries and
suppliers are effectively managed and controlled by the
retailers’ channel dominance.
In the February 2015 report by Retail Next they
reported that New shopper generations like Millennials
are reshaping the retail industry, and noted five retail
trends emerging in 2015.
1. Convergence of Digital & Physical
Channels
The convergence of digital and physical channels
is critical for retailers who want to succeed in
building their brands with their customer bases. The
shopping experience  must be accessible, available
and deliverable – all in the format and time that
shoppers want it. Building multiple and consistent
touchpoints across various channels is key to top line
growth. Leveraging strong CRM and loyalty programs
across digital and physical will deliver strong bottom
line performance by engaging the most loyal customers.  channels.
08
2. Optimization of the In-Store
Shopping Journey
The in-store shopping experience must be inspiring,
captivating and relevant to the shopper. Gone are the
days of ‘keep her in the store as long as possible so she
will spend more.’ The new mantra is, ‘offer differentiated
product in a captivating environment, and deliver in the
most efficient manner.’
3. Enabling Technology to Inspire
and Captivate
Using in-store technologies to continue the customer
touchpoint beyond the four walls is critical. The use
of in-store messaging, iBeacons, social media, loyalty
programs and personal associate communications
before, during and after the store visit continues
the shopping experience beyond the scope of the
four walls. Understanding and measuring in-store
shopper activities and engagement are key to building
stores that transcend shopper exploration and leads
to customer commitment. 
4. Location Format Redux
Across all retail types, from size to channel, there is
a paradigm shift for businesses engaged in the retail
sector. Large format discount stores are investing in
small, “bite size” elements of their footprint showcasing
specific product categories, and online only retailers
are opening up physical stores to showcase the
branding experience for customers. Retailers are
closing down unprofitable locations while investing
deeply in store theatrics for locations in prime
target areas of their customers. The bottom line is
that retailers need to create both physical branding
opportunities, and relevant shopping journeys across all
5. The Convenience Factor
Convenience is the key deliverable for today’s customer
and the future customer of tomorrow. ‘Make it easy’
and relevant. Complex infrastructures might be in the
background, but the front side has to be “easy.” Today’s
shopper has less money, less time and less infinitely
patience for retailers to ‘get it right.’ 
THE ASEAN MARKET
The region, whilst comprising of a
number of countries at different stages
of development, has a common goal to
have a more unified approach to the
regional economies, with the ASEAN
Economic Community effective from
2015, a gradual and controlled alignment
of regional tariffs and flow of goods
and services will assist governments in
aligning their approach to development.
Association of South East Asean Nations (ASEAN)
the AEC shall be the goal of regional economic
integration by 2015. AEC envisages the following
key characteristics:
• a single market and production base
• a highly competitive economic region
• a region of equitable economic development,
and;
• a region fully integrated into the global
economy.
mall of borneo
In short, the AEC will transform ASEAN
into a region with free movement of goods,
services, investment, skilled labour, and freer
flow of capital.
It is the World’s 3rd largest consumer
market, with 620 million people and attracts
more foreign investment than China.
ASEAN has dramatically outpaced the rest of
the world on growth in GDP per capita since
the late 1970s. Income growth has remained
strong since 2000, with average annual real
gains of more than 5 percent. Some member
nations have grown at a torrid pace: Vietnam,
for example, took just 11 years (from 1995
to 2006) to double its per capita GDP from
$1,300 to $2,600.
Extreme poverty is rapidly receding. In 2000,
14 percent of the region’s population was
below the international poverty line of $1.25
a day (calculated in purchasing-power-parity
terms), but by 2013, that share had fallen to
just 3 percent.
Already some 67 million households in
ASEAN states are part of the “consuming
class,” with incomes exceeding the level at
which they can begin to make significant
discretionary purchases. That number could
almost double to 125 million households by
2025, making ASEAN a pivotal consumer
market of the future.
There is no typical ASEAN consumer,
but some broad trends have emerged: a
greater focus on leisure activities, a growing
preference for modern retail formats, and
increasing brand awareness (Indonesian
consumers, for example, are exceptionally
loyal to their favorite brands).
ASEAN’s combined GDP is in excess of
US$1.6 trillion with Indonesia accounting for
over 40% of the regional GDP
09
 INFORMATION MEMORANDUM OF A NEW GENERATION mall of borneo

INDONESIA
MARKET
Retail Sales: $140 billion USD (2013)
Real Sector Growth: 15% (2014)
Number Employed: +20 million
Modern Retail Market Share: ±40%
Main Areas: Hypermarkets, Supermarkets, Department Stores, Mini Markets,
Speciality Stores.
Relevant Law: Presidential Decree No. 111/2008 which states that foreign
companies may only operate in retail spaces greater than 1,200
sqm for hypermarts and 2,000 sqm for department stores.

INDONESIA TODAY INDONESIA 2030

16th 7th indonesia’s population is growing and becoming more affluent

Largest Economy in The World Largest Economy in The World
Indonesia population 2012 (millions) Monthly household expenditure Indonesia population 2020 (millions)

45 Million 135 2.5

(IDR millions)

6.9
Members of The Consuming Class Million Members of The Consuming Class Elite 7.5 and more
8.4 16.5
Affluent 5.0-less than 7.5
74% 86% 22.2 Uppermiddle 3.0-less than 5.0 45.3
of GDP of GDP 41.6 Middle 2.0-less than 3.0 66.2

55 Million 113 Million 44.4 Emerging middle 1.5-less than 2.0 50.5

65.6 Aspirant 1.0-less than 1.5 47.9

Skilled Workers in The Indonesia Economy Skilled Workers in The Indonesia Economy
Poor less than 1.0
64.5 38.3

53% 71% 76 million MACs in 2012 141 million MACs in 2020

of The Population in Cities Producing
$0.5 Trillion
Market Opportunities in Consumer Services,
Agriculture and Fisheries, Resources and Education
of The Population in Cities Producing
MAC population includes middle, upper-middle, affluent, and elite consumers
$1.8 Trillion
Market Opportunities in Consumer Services,
Agriculture and Fisheries, Resources and Education

10 11
 INFORMATION MEMORANDUM OF A NEW GENERATION mall of borneo

16,000
indonesian rupiah
14,000

12,000

10,000

8,000

6,000

4,000

2,000

source: www.tradingeconomics.com | otc

interbank 0
2010 2012 2014

retail sales in indonesia indonesia tourist

1,000,000

arrivals
Despite the global contraction over the last few years Indonesia has enjoyed 900,000
The benefit of a weaker currency
continued year on year growth in the retail sector. however is that foreign tourist
50 numbers are increasing and their 800,000

indonesia retail sales yoy spending power is further driving

In Indonesia, the year-over-year 40
domestic consumption. 700,000

change in Retail sales compares the

aggregated sales of retail goods and 600,000
30
services during a certain month to
the same month a year ago. Content 500,000
for - Indonesia Retail Sales YoY 20 2011 2012 2013 2014 2015

– was last refreshed on Tuesday, source: www.tradingeconomics.com | statistics indonesia

October 27, 2015 10

forecast for indonesia’s 600

0
2010 2012 2014 retail sales from 2008 to
500
2016 (in billion u.s. dollars)
source: www.tradingeconomics.com | bank indonesia
This timeline shows a forecast
400

billion u.s. dollars

for Indonesia’s retail sales from
1,220,000
indonesia consumer 2008 to 2016. It is forecasted that 300
spending 1,200,000 Indonesia’s retail sales will amount
The middle class have an increasing 1,180,000
to about 473.91 billion U.S. dollars 200

spending power and this is in 2015.

1,160,000
reflected in the continued growth 100
idr billion

in consumer spending indicated 1,140,000

above. The country is experiencing 1,120,000

0
2008 2009 2009 2009 2009 2009 2009 2009 2009
approximately a 5% annual inflation
1,100,000 © statista 2015
rate however the Rupiah currency
has been performing poorly 1,080,000

compared to global currencies 1,060,000

which may fuel inflation over the jul 2012 jan 2013 jul 2013 jan 2014 jul 2014 jan 2015 jul 2015

coming 18 months. source: www.tradingeconomics.com | statistics indonesia

12 13
 INFORMATION MEMORANDUM OF A NEW GENERATION mall of borneo

gdp compound annual growth rate, 2013-30 (%) less than 5 percent
5 to 7 percent
more than 7 percent

grow sumatra kalimantan

sulawesi

throughout papua

the country
maluku

Jakarta
java
bali and nusa
tenggara

THE MAJORITY
Large, mid-sized, and small OF INDONESIA’S
middleweight cities FASTEST-
gdp compound annual growth
rate, 2010-30
share of
gdp, 20302
share of
population, 2030
will continue to grow faster GROWING CITIES Jakarta 5.1 19 4
than Jakarta
ARE OUTSIDE JAVA Large middleweights
9.1 11 10
Cities 5 million - 10 million

Mid-sized middleweights
6.9 15 14
Cities 2 million - 5 million

Small middleweights
6.3 37 40
Cities 150,000 - 2 million

Other cities 1.7 3 3

Cities <150,000

Rural1 2.0 14 29

Indonesia2 5.3 100 100

1 We use the definition of urban and rural areas from Indonesia’s Central Bureau of Statistics.
2 Model is based on more than 400 cities and districts, covering 90 percent of GDP. GDP is allocated to urban and rurals areas based on
population share, with a 28 percent premium per capita for urban areas based on historical income differences.

NOTE: Numbers may not sum due to rounding.

SOURCE: 2010 Population Census and Socio-Economy Survey, Indonesia’s Central Bureau of Statistics. McKinsey Global Institute
analysis.

14 15
 INFORMATION MEMORANDUM OF A NEW GENERATION mall of borneo

KEY FACTS:

pontianak

16 17
 INFORMATION MEMORANDUM OF A NEW GENERATION mall of borneo

PONTIANAK
Pontianak sits on the equator and is the
Capital city of West Kalimantan.

The Indonesian Government identified the

Kalimantan Economic Corridor as a “Centre for
Production and Processing of National Mining
and Energy Reserves” the main resources
currently are Crude Palm Oil (CPO) and Gold
mining. Coal mining is prevalent however with
the current depressed commodity pricing many
coal activities have been put on hold.

The Government has recently invoked new laws

to establish the refinement of raw products
before exporting is permitted, this will drive
higher skilled work requirements and is already
seeing increased investment in the province.

The activities promoted by the government’s

economic corridor include:

• Steel • Coal
• Bauxite • Oil & Gas
• Palm Oil • Timber

18 19
 INFORMATION MEMORANDUM OF A NEW GENERATION mall of borneo

kalimantan
kalimantan population
barat province economic growth

coridor population of kalimantan barat kalimantan barat by gender

5,000,000 1.9%

1.8%
51.1% 48.9%
4,500,000 1.7% male female
subject site
1.6%

4,000,000 1.5%
2009 2010 2011 2012

population growth

population of pontianak pontianak by gender

Consist of 12 Regencies 600,000 6.0%

and 2 Municipalties 4.0% 50.1% 49.9%

550,000

male female
Total Area: 500,000 2.0%

146,807 sq.km 450,000 0%

2009 2010 2011 2012 2013

Population Density: population growth

31 people/sq.km

Largest Population:
population of kubu raya kubu raya by gender
Kota Pontianak (575,843 people) 540,000 3.0%

Kubu Raya (518,803 people) 520,000

2.0% 50.9% 49.1%
With a young and growing middle affluent class, there are six
500,000 male female
Densest Population: major universities in the city, the desire for international brands 1.0%
480,000
Kota Pontianak (5,342 people/ and quality family entertainment is growing. Currently many
460,000 0%
km2) residents fly to Jakarta and Singapore for retail and entertainment 2009 2010 2011 2012
activities due to the lack of facilities in the Province.
population growth
Population:
4,550,297 (2012)
source: central statistic body of kalimantan barat, pontianak & Kubu • The record from the Central Statistic Body shows
raya 2014
that the population of KalBar, Pontianak and Kubu
Raya have increased over the last few years.
1.6%
• Average population growth: 1.7% per annum for
compared to 2011 KalBar, 2.4% per annum for Pontianak, and 2% per
source: res research, 2014
annum for Kubu Raya.
• In terms of gender, male population in KalBar,
Pontianak and Kubu Raya slightly dominated the total
population by 51%.

20 21
 INFORMATION MEMORANDUM OF A NEW GENERATION mall of borneo

population In terms of age distribution, KalBar province has experienced a baby-

boom, evident from the domination of children and teenagers under the
gross regional domestic product
age groups age of 15 years old. Pontianak is a municipality dominated by students • GRDP of KalBar is dominated by Agriculture sector, meanwhile GRDP of Pontianak is dominated by Trade, Hotel
and young workers, shown by the dominant population from 15 to 24 & Restaurant. Manufacturing Industry sector highly dominates GRDP in Kubu Raya.
source: central statistic body of kalimantan barat,
pontianak & Kubu raya 2014 years old. Kubu Raya district is also dominated by younger population. • GRDP in KalBar grew by an average of 6% (constant price), while GRDP in Pontianak grew by an average of 6%
(constant price). Kubu Raya has an average of 7% (constant price).
population of kalimantan barat by age groups 2012 • Pontianak is growing strong in trade, hotel and restaurant.
300,000
• The positive GRPD growth in KalBar, Pontianak and Kubu Raya indicated an improvement of buying power.

200,000
grdp of kalimantan barat grdp of pontianak
100,000
Services Services

0
Financial, Real Estate & Financial, Real Estate &
Business Services Business Services
-100,000

Transportation & Transportation &

-200,000 Communication Communication

-300,000 Trade, Hotel & Restaurant Trade, Hotel & Restaurant UP

0-4 5-9 10-14 15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65-69 70-74 >75
Construction UP Construction
female male
Electricity, Gas, Water Electricity, Gas, Water
Supply Supply
population of pontianak by age groups 2013
Manufacturing Industry Manufacturing Industry
40,000
Mining & Quarrying Mining & Quarrying
30,000

20,000 Agriculture Agriculture

10,000
0% 10% 20% 30% 0% 5% 10% 15% 20% 25% 30%
0
2012 2011 2010 2013 2012 2011 2010
-10,000

-20,000
grdp of kubu raya
-30,000

-40,000 Services

0-4 5-9 10-14 15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65-69 70-74 >75
Financial, Real Estate &
Business Services
female male

Transportation &
UP
Communication
population of kubu raya by age groups 2012 “The positive GRPD growth in
40,000
Trade, Hotel & Restaurant
KalBar, Pontianak and Kubu
30,000 Construction Raya indicated an improvement
20,000
Electricity, Gas, Water
Supply
of buying power.”
10,000

0
Manufacturing Industry
-10,000
Mining & Quarrying
-20,000

-30,000 Agriculture

-40,000
0% 20% 40% 60%
0-4 5-9 10-14 15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65-69 70-74 >75 source: central statistic body of kalimantan barat, pontianak & Kubu
2012 2011 2010 raya 2014
female male

22 23
 INFORMATION MEMORANDUM OF A NEW GENERATION mall of borneo

consumption & income household prosperity

kalimantan barat, pontianak, kubu raya
• Kalimantan Barat, Pontianak and Kubu Raya household prosperity in pontianak
• The GRDP per capita has continue to population are generally dominated by Mid-Low 70,000

increase in KalBar and Kubu Raya. per capita grdp in kalbar & kubu raya Segment, classified in KS II, by about 40% of the total
60,000
• The higher consumption of Non-Food population.
Year Current Constant Current Constant
above Food indicates higher income • The second highest percentage of household 50,000
households in the overall society*. 2011 14,906,907 7,160,191 19,518,619 10,284,955 prosperity in Kalbar and Kubu Raya are KS I (Mid-
40,000
• Among the Non-Food consumption, the 2012 16,420,549 7,448,650 21,458,100 10,743,146 Low Segment), whereas Pontianak is KS III (Mid-Up
majority was used for needs that are 2013 18,304,010 7,772,462 24,079,668 11,317,951 Segment). This clearly identifies much higher 30,000
related to Housing and miscellaneous market segment available in Kota Pontianak.
20,000
goods or services • The total proportion of Middle, Mid-Up and Upper
segment in Pontianak reach 47%. 10,000
per capita consumption in kalbar per capita consumption in pontianak
0
parties & ceremonies parties & ceremonies 2009 2010 2011 2012 2013

pra ks ks I ks ii ks iii ks iii+

taxes & insurance
taxes & insurance
Durable goods
household prosperity in kubu raya household prosperity in kalbar
Durable goods
clothing, footwear, etc.
70,000 600,000

clothing, footwear, etc. health

60,000
500,000
education
goods & services 50,000
400,000
goods & services
40,000
housing & household 300,000
housing & household
facility facility 30,000
0 50,000 100,000 150,000 0 50,000 100,000 150,000 200,000 250,000 200,000
20,000
2012 2011 2010 2011 2010

100,000
10,000
per capita consumption for food & non-food food non-food
0 0
42.7% 55.3% 44.7% 2010 2011 2012 2013 2009 2010 2011 2012 2013

non-food non-food non-food pra ks ks I ks ii ks iii ks iii+ pra ks ks I ks ii ks iii ks iii+

source: central statistic body of kalimantan barat, pontianak & Kubu raya 2014

57.3% 55.3% 54.8%

“The total proportion of Middle,
food food food

kalbar 2012 pontianak 2011 Mid-Up and Upper segment in

kubu raya 2011 Pontianak reach 47%.”
source: central statistic body of kalimantan barat, pontianak & Kubu raya 2014
*note: communities with higher income and higher prosperity tend to spend a higher persentage on non-food, while less-prosperous ones spend a
higher percentage of food.

24 25
 INFORMATION MEMORANDUM OF A NEW GENERATION mall of borneo

retail centre
competition
surrounding areas

26 27
 INFORMATION MEMORANDUM OF A NEW GENERATION mall of borneo

competition map
competing retail centres
• There are very limited numbers
of retail centres in Pontianak.
• Only 4 properties matches the
retail centre category.
• Mall Pontianak (Ramayana) is
actually an owner-occupied
building, but still has several
Ayani Mega Mall mall matahari mal pontianak plaza khatulistiwa
areas leased to third party
tenants.
• Mall Gajah Mada, once a
prominent mall in the city
centre, has been converted and
now become Aston Hotel.
• No Branded tenants
• Plaza Khatulistiwa is an old • Local unfamiliar brands
retail centre, comprises of old • Trade center style kiosks

mall of borneo
kiosks and located underneath
LEGEND
1. Ayani Mega Mall Hotel Santika.
2. Mall Matahari Pontianak

Rental Rate & Occupancy

3. Mall Pontianak (Ramayana)
4. Khatulistiwa Plaza

speciality speciality
Year target occ.
No Name Location rental price charge
Open market rate
(per sqm/mth) (per sqm/mth)
retail centre supply 1 Ayani Mega Mall Jl. Ahmad Yani 2013 Rp300,000 Rp80,000 Middle 97%

retail centres in pontianak 2 Mall Matahari

Jl. Jend. Urip
2011 Rp235,000 Rp72,000 Middle 93%
Sumoharjo
Year Land Area Estimated Mall Pontianak Jl. Tanjung
No Name Location Retail Concept 3 2003 Rp430,000 N/A Middle-Low 99%
Open (sqm) GFA (sqm) (Ramayana) Pura

1 Ayani Mega Mall Jl. Ahmad Yani One-stop Shopping Mall 2005 18,700 42,000 4 Khatulistiwa Plaza Jl. Diponegoro 2006 N/A N/A Middle-Low 95%
Jl. Jend. Urip Rp302,000 Rp76,000 96%
2 Mall Matahari Neighbourhood Mall 2000 8,900 19,000
Sumoharjo

Mall Pontianak Jl. Tanjung • Average Base Rental: Rp302,000.- per sqm/month
3 Owner-occupied Majority n/a 6,600 12,000
(Ramayana) Pura • Average Service Charge: Rp76,000.- per sqm/month
• Average Occupancy: 96%
4 Khatulistiwa Plaza Jl. Diponegoro Kiosks Centre n/a 4,000 7,800

• Total Competing Supply: 80,800 sqm of GFA from 4
projects.
• Average Gross Size of 20,000 sqm → Small-Medium
Size malls in this small market
• The largest retail centre is Ayani Mega Mall with a
size under 50,000 sqm GFA.
• Other than the mentioned retail centres above, other
retail facilities are mostly in the form of a large local
supermarket such as Harum Manis, Kaisar, and Ligo
Mitra.

28 29
 INFORMATION MEMORANDUM OF A NEW GENERATION mall of borneo

retail centre
potential
mall of borneo

30 31
 INFORMATION MEMORANDUM OF A NEW GENERATION mall of borneo

pontianak
regency

pontianak
city
mall of borneo
Target
Market and
kubu raya
regency Development
Concept

Retail Considering:
• Limited supply of good retail center

Catchment (currently only 3, and 1 is an owner-occupied

Area of Mall
of Borneo
Due to the limited retail centre supply in
Pontianak, catchment area is expected
to be larger than the common retail
catchment areas for more developed
cities (such as Jakarta or Surabaya
where retail centre facilities are
available in every 5 to 10 km).
centre).
• Limited nationwide retail brands in the
existing retail centers, indicating a lot of
room to grow for new brands entering
Pontianak.
• The centre of activities in Pontianak which
With the position on the provincial road close to the has shifted towards the southwest, with
main airport of the province, the proposed Mall of increasing activities around Ahmad Yani and
Borneo is expected to be able to capture population Abdul Rahman.
from nearby regencies and municipalities, such as: • Relatively good composition of Middle Class
• Pontianak Municipality (Kota Pontianak) to Upper Class households in Pontianak,
• Kubu Raya Regency indicating high purchasing power
• Landak Regency
• Pontianak Regency (Kab. Pontianak)
• Sanggau Regency

one stop With more familiar

Development
Concept
shopping brands of tenants
Shopping Centre Type: Target Market:
• Regional Centre* • Middle to Upper
income segment
of Pontianak and
surrounding regencies

* Regional Centre: 400,000-800,000 sqft, general merchandise, 50-70% anchor ratio. (ICSC shopping centre definitions)

32 33
 INFORMATION MEMORANDUM OF A NEW GENERATION mall of borneo

Price Correlation Analysis market positioning Analysis

(retail centre-lease)
crowd design average Rent
tenant
No projects pulling location accessibility & facilities store (per sqm/
mix crowd design average Rent
factor quality size month) tenant weighted
No projects pulling location accessibility & facilities store (per sqm/
mix avg store
1 Ayani Mega Mall 4.5 4.0 4.5 4.0 3.5 4.0 4.0 Rp300,000 factor quality size month)

2 Mall Matahari 3.5 5.0 4.5 3.0 3.0 3.0 4.0 Rp235,000 18% 10% 10% 12% 15% 15% 20% 100% per sqm/month
3 Mall Pontianak (Ramayana) 4.0 5.0 3.5 2.0 2.5 2.5 5.0 Rp439,560 Ayani Mega
1 4.5 4.0 4.5 4.0 3.5 4.0 4.0 4.1 Rp300,000
Mall
4 Ruko at Ayani 2 1.0 3.0 2.0 1.0 1.0 1.0 1.0 Rp33,333
2 Mall Matahari 3.5 5.0 4.5 3.0 3.0 3.0 4.0 3.6 Rp235,000
5 Ruko at Ayani 1.0 5.0 3.0 1.0 1.0 1.0 2.0 Rp36,651
Mall Pontianak
6 Ruko at Pontianak Mall 1.0 4.0 4.0 1.5 2.0 1.0 2.0 Rp32,552 3 4.0 5.0 3.5 2.0 2.5 2.5 5.0 3.6 Rp439,560
(Ramayana)
Correlation 92.9% 45.3% 47.0% 63.7% 73.6% 78,1% 95.7% 496% Ruko at Ayani
4 1.0 3.0 2.0 1.0 1.0 1.0 1.0 1.3 Rp33,333
Weighted 2
18.7% 9.1% 9.5% 12.8% 14.8% 15.7% 19.3% 100%
Correlation 5 Ruko at Ayani 1.0 5.0 3.0 1.0 1.0 1.0 2.0 1.8 Rp36,651
Ruko at
6 1.0 4.0 4.0 1.5 2.0 1.0 2.0 2.0 Rp32,552
Pontianak Mall
Due to the limited availability of retail centres in The factors that determine prices the most are:
subject site 4.5 3.0 4.0 5.0 4.0 4.5 3.0 4.0 Rp343,000
Pontianak, we have also included commercial spaces • Average store size in the retail centre – (96
available in shophouses, which are obviously cheaper correlation)
* Average base rent for speciality tenants, year 2014
than retail spaces in retail centres, but are still useful to • Crowd-pulling factor of the property (or retail The price of the retail space was based on the availability price and position, which is also intrepreted in the “store size” (higher score for store
identity the likely rental rate people are willing to pay in centre) – (93% correlation) means smaller speciality store sizes)
relation with the advantages/disadvantages of a retail • Facilities – (78% correlation) Examples: The available retail space for lease at Ramayana is a small space on the 2 th floor. This is the reason why the oofered price is quite
expensive.
business located in the property. • Design and Quality – (74% correlation)

500,000

450,000
MAL PONTIANAK (RAMAYANA)

400,000

RENTAL RATE RP. PER SQM PER MONTH

350,000 SUBJECT

300,000 AYANI MEGA MALL

250,000
MALL MATAHARI
200,000

150,000

100,000
RUKO
GAJAHMADA
50,000 RUKO AYANI 2
RUKO PONTIANAK MALL
0
1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0

r2 = 0.797 WEIGHTED STORE

The estimated achived average rental rate (per sqm per month) for specialty store in Mall of Borneo in 2014 price:
Rp343,000.- per sqm/month, excluding service sharge

34 35
 INFORMATION MEMORANDUM OF A NEW GENERATION mall of borneo

MARKET SHARE Analysis Retail Assumptions

TRADE design SHARE OF
TENANT FACILITIES PLANNING COMPETITIVE TOTAL MARKET Consumer Spending Capability:
projects MIX & TOTAL CATCHMENT
SUSTAINABILITY PROVIDED & LAYOUT LEVEL COMPETITIVENESS SHARE
VARIETY quality AREA • Average visit per month: 3 times per month
Ayani Mega • Potential captured average-spending per visit to Shopping Centre:
5 5 4 4 4 22 88.0% 75% 66.0% 32.97%
Mall Rp265,000 (2014)
Mall Matahari 4 4 3.5 3.5 3.5 18.5 74.0% 40% 29.6% 14.79% • Potential captured average-spending per visit to Shopping Centre:
Mall Pontianak Rp303,000 (2016)
2 1.5 2 2 3 10.5 42.0% 30% 12.6% 6.29%
(Ramayana)
• Average rent is expected to be around Rp243,000 per sqm in 2017.
subject 5 5 4.5 4.5 4 23 92.0% 100.0% 92.0% 46.0%

% of total
estimated estimated
type of trade floor tenant
With the existing retail centres close to the catchment area, and considering their different development scales, rent in 2014 rent in 2017
space* sizeO
the retail centre on the subject site at Jl. Ahmad Yani 2 is estimated to have a market share of 46.0% in the selected Anchor Tenants 30% 19,080 Rp50,000 Rp61,000
catchment area. Specialty Stores 25% 15,900 Rp343,000 Rp420,000
F&B 20% 12,720 Rp377,500 Rp462,000
Big Tenants (incl.

Assessment of Retail Space Demand

25% 15,900 Rp85,750 Rp105,000
Entertainment tenants)

total/average 100% 63,600O Rp198,000 Rp243,000

To assess the available retail demand for an area, we From the potential expenditure in 2015 (the year
check the attachment area, the targeted population, when the CBD Ciledug Mall is finished the renovation/ * Based on estimated composition of a retail centre with One-Stop shopping centre
concept
and estimate their potential expenditure in the area revitalization works), and from the estimated average O
From retail demand analysis in the previous page
based on local expenditure patterns (each can be rental rate in CBD Ciledug Mall, a total size of the
different). demanded retail space is achieved.
Retail Space Demand of The
catchment area
Existing CBD Ciledug Mall
Covered population within the catchment area 930,260 people Total Potential Captured Expenditure per
month (2015)
Rp124,308,404,552 The retail space demand analysis for the proposed Mall of Borneo
Age group of 15-59 years old 66.7%
Average sales turnover spent for rent 10.6% shows that from:
Mid to Upper income in Pontianak Municipality
– KS III & KS III+
47.9%
Average rent of the whole center (2014 price) 197,648 • The potential market share (in the very limited competition set) and
Potential target market 296,940 people Average rent of the whole center (2016 price) 226,250
• Based on the visitors profile on the mall (from the population profile
Market share 46.0% Total estimated demanded Net Retail Space 63,600 sqm
of Pontianak)
Targeted population 136,456 people One-Stop Shopping
Concept
Center From our rough calculation of the development data, the proposed
Average frequency of visit per month 3
Target Market Middle to Middle-Up Mall of Borneo will have areas as follow:
Total number of visits per month 409,368 visits
Gross Floor Area 90,900 sqm • Total of 93,150 sqm GFA
Average spending per person per visit (year
Rp303,000 • Total of 67,486 sqm NLA
2015)
Potential Captured Expenditure per month in
Rp124,308,404,552
2015 (catchment area) This analysis therefore shown that Mall of Borneo will be able
Add: occasional shoppers (not from catchment to capture the potential demand in Pontianak and its immediate
10%
area)
neighbouring regencies.
Total Potential Captured Expenditure per
Rp136,442,245,007
month in 2015
Therefore, should the proposed Mall of Borneo go ahead with its
current retail area planning, we predict the retail centre will have its
occupancy of 93.7% in one year time.

Further financial analysis for the Mall will be using our recommended
retail space configuration with an assumption of 95% occupancy year-
round.
36 37
 INFORMATION MEMORANDUM OF A NEW GENERATION mall of borneo

concept guide current No

PERUSAHAAN
PENYEWA
NAMA DAGANG

tenant
1 PT. TOZY SENTOSA CENTRO BY PARKSON
2 PT. MATAHARI PUTRA PRIMA, Tbk HYPERMART

overview
3 PT. LESTARI MITRA SEMBADA XXI PREMIERE
4 PT. OPTIK TUNGGAL SEMPURNA OPTIK TUNGGAL
5 PT. OPTIK MELAWAI PRIMA OPTIK MELAWAI
The current progress on 6 OPTIK SEIS OPTIK SEIS
7 PT. MONICA HIJAU LESTARI THE BODY SHOP
securing retail tenants 8 PT. MEGA SUKSES LOLY POLY
has been very successful 9 CV. PS BREAD CRYSTAL JADE
10 PT MAHKOTA JAYA SENTOSA SHOELINE
with more than fifty 11 PT. GOLDEN VENUS EVERBEST
signed and secured 12 LUMINOUX RADIANCE LUMINUOX

international brands 13 PT. PILOFICE WATCH CIRCLE

14 WATCH CLUB MAHKOTA WATCH
Supermall Pakuwon Indah contracted for long-term 15 PT. TAS CENTRE CEMERLANG TRAVEL XPERIENCE
in Surabaya has been a large tenancy from outset. 16 PT. CENTRAL MEGA KENCANA FRANK & CO
regional centre in the west part 17 PT. ERANDRA SURYA MANUNGGAL CURLY & SNOOPY BABY
18 PT. FAJAR UTAMA NUANSA FUN STATION
of Surabaya, closer to the new
19 FUN WORLD
residential developments.
20 MITRA CELULER GROUP GRAND CELULER
21 PT. PERINTIS PELAYANAN PARIPURNA CENTURY
Tenancy mix concept: 22 PT. SURYA MULTI LAKSANA LOGO & BOOMB BOOGIE
One-Stop Regional Centre 23 PT. BINACITRA KHARISMA LESTARI TRISET & OXA
24 PT. ANUGRAH BUSANA INDONESIA EPRISE
Building/Interior concept: 25 LEVI’S
Enclosed Mall with Large Atrium 26 PT. WARNA MAHARDIKA COCONUT ISLAND

(with large atrium for regional 27 PT. WARNA MAHARDIKA HAMMER

With limited space in ayani
28 PT. POINT BREAK INDONESIA QUICK SILVER
mega mall and mall exhibitions and events)
29 PT. POINT BREAK INDONESIA BILLABONG
matahari, the proposed Mall of 30 PT. POINT BREAK INDONESIA RUSTY
Borneo will benefit from having 31 POINT ONE
a large atrium for exhibitions and 32 PT. IZONE INDONUSA C&F PERFUMERY
events. 33 CV. BUNGA MENTARI ABADI BUNGA
34 PT. RODEO KERTA KENCANA RODEO
35 BABY WORLD
Building/Interior quality:
36 IBOX IBOX
Mid-Up Segment floor finishing
37 PT. PRIMAJAYA PANTES GARMENT POLO
and Cool AC
38 PT. RODEO KERTA KENCANA 3H
39 PT. KARYA IDAMAN BERSAMA DONINI
Facilities: 40 ROTELLI
Seating area, can also be in a 41 BELLAGIO
dedicated F&B area 42 PT. DWIDAYA WORLD WIDE DWIDAYA TOUR
(comfortable seating areas 43 ICONNECT

increase time spent in malls) 44 PT. ALMANDA NUANSA CIPTA PS & M2

45 PT. KARYA KREASI PESONA INDONESIA TEAPRESSO
46 PT. PRIMA USAHA ERA MANDIRI A&W
47 CAFÉ
48 GOSH
49 TELESINDO SHOP
50 CENTRAL PONSEL
51 CARDINAL
52 WELCOME
38 39
 INFORMATION MEMORANDUM OF A NEW GENERATION mall of borneo

mall of borneo

total available land area: ±6HA

THE LOCATION Surrounding

• The subject site is located along Jl. A. Yani 2, within IN PONTIANAK Developments North
Surrounding Areas

Trans Kalimantan Road, Univ.

Kubu Raya Regency. Tanjug Pura, Ayani Megamall
• Jl. A. Yani 2 is a main road that connects Supadio Hotel Dangau, Shophouses,
South
Airport to the city centre. Gardenia Resort, Supedia Airport
• Pontianak City municipality is located approximately Shophouses & Housing complex
West:
2km to the North-western side of the subject side. (Villa Ceria Lestari)
• Pontianak City is the capital province of West Housing complex, Jl. Adi Sucipto
East:
(major road), Kapuas 2 bridge
Kalimantan province which is well known to be
located in the equator line.

40 41
 INFORMATION MEMORANDUM OF A NEW GENERATION mall of borneo

equator monument

the management
The two Principals of the company are Mr Siman & Ms Merry who together have
a strong local presence in Kalimantan as well as managing the business interests
site surroundings kapuas bridge
across Indonesia.

ayani mega mall

univ. tanjungpura

PT Surya Pajintan has a proven track record for developments

in Pontianak with the highly successful Golden Tulip Hotel
already profitably servicing the upper and middle markets for
SUBJECT site business and leisure guests, and the Grand Swiss-Belhotel
shophouses along jl. a. yani 2 Pontianak (opening 2016) under construction which will
become an icon of the city.

mr. siman ms. merry

current site condition

supadio airport

shophouses across subject tie

site
connectivity The management team of the
existing operations as well as the
pre-opening team for the mall
Surrounding landmarks distance* have extensive experience in
Equator Monument 10.9km attracting tenants and managing
Supadio Airport 7.7km the development of the site
through the construction stages.
Kapuas Bridge 5.7km
Ayani Mega Mall 4.5km

Jl. A. Yani road towards city Univ. Tanjung Pura 4.0km

centre

42 43
 INFORMATION MEMORANDUM OF A NEW GENERATION
professional partners
PHL Architects is an award winning architectural firm with
specialisation in sustainable tall buildings, commercial, hospitality,
office, leisure and cultural buildings, including urban design. Since its
formation, PHL Architects has won several awards and their works
have been published and exhibited in numerous events such as in
Tokyo, Hong Kong and The Hague.
PHL were the architects for the Royal Tulip hotel in Pontianak and the
two management teams have a proven synergy to deliver on target
projects in harmony.
44
Patrick Lim, B.Arch, MA, MSc (Arch),
IAI, SBA
Licensed Architect in Indonesia
(Indonesian Institute of
Architects/IAI), and in The
Netherlands (Stichten Bureau
Architectenregister/SBA)
Patrick Lim graduated from University of
Tarumanagara in 2001. Later, he was trained
at Venice Architectural Association (Italy) in
Tall Building Design. He received his first
Master Degree in Architecture & Critical
Theory at TheUniversity of Nottingham
(UK) and second Master Degree from Delft
University of Technology (The Netherlands)
majoring in Materialisation and Design
Development with Sustainable Tall Building
Design as the main specialisation.
He was one of the curators for “Indonesian
Architecture Public Exhibition 2012” in The
Hague held by Indonesian Embassy in The
Netherlands, IAI-EU and Archicentrum.
One of his writing had been presented in
the 15th Asian Congress Architects at Bali
Nusa Dua Convention Center, 2012. He is a
lecturer at University of Tarumanagara.
the shophouses
The opportunity to participate in
the development of the iconic Mall
of Borneo project with a blend of
debt and equity options tailored
to the right investment partner’s
requirements.
This development is a mixed use integrated offering, with the
iconic Mall of Borneo shopping experience as its driver.
Phase 1 will be the construction and opening of the Mall, with
phase 2 including the completion of the business units, and
phase 3 the hotel.
The primary issue in Indonesia for any development is the
clean and clear land titles.The land title is Hak Milik, the highest
level of clear ownership available in Indonesia .
The development has all necessary government permits
and licences in place and is ready to commence immediate
development.
mall of borneo
the
investment
opportunity
This project offers a unique blend of retail, commercial and
hospitality aspects to ensure maximum returns on investment
and is ensured to be the focal point for leisure and business
for West Kalimantan. The land is available as collateral and the
current owners will be providing their own cash and additional
assets as required to ensure the best balance of equity and
debt ratios.
Development Partners are sought who can, subject to full due
diligence, activate investment strategies without delay. Full
financial analysis and return on investment modelling can be
made available on request.
45
INFORMATION MEMORANDUM OF A NEW GENERATION mall of borneo