1. DEFENDING MARKET SHARE
September 2015

2. Property Fundamentals revisited
Demand Drivers
Eastern Cape macro economic indicators
Slower population growth – outward migration
Unemployment 36.5% vs national 24.7%
33% of population recipients of welfare grants
Average household income of R76k/p.a. vs national average of R120k
Income Drivers:
Automotive Industry
Agriculture
Family income transfers 3

3. Port Elizabeth Retail Supply3

4. Competitive Analysis: Baywest
LOCATION
CATCHMENT MARKET
ACCESSIBILITY
PARKING
BUILT PRODUCT
LAY-OUT
TENANT MIX
DIFFERENTIATION 3

5. IMPACT FOOT COUNTS: - Week days vs weekends TRADING PERFORMANCE
Walmer Park
Vacancy : 0%
2014/5 T/O: 8%
Greenacres
Project: 3940m2
Vacancy: 2.2%
2014/5 T/O: 1.8%
The Bridge
Vacancy: 2.33%
2014/5 T/O: 2.2%
Aug T/O up 4.48%

6. 3

7. BAYWEST PERFORMANCE Trading Overall Anchors Fashion Entertainment
Success Potential
Recruitment harder than retention
Historical evidence
Development densification doubtful
Pressure on income, leading to neglect
Risk of uncontrollable hemorrhaging

8. DEFENSIVE STRATEGY WALMER PARK Enhance tenant mix
Recruit disillusioned Baywest tenants where suitable
Customer care programme
THE BRIDGE
Evaluate continued minority share ownership
GREENACRES
Complete redevelopment & upgrade
Refocus target market
Extension and right-sizing of tenants