AURA, Yaroslavl GoodZone, Moscow Vremena Goda, Moscow

On the road to success in Russia

ECE is gathering pace in Russia: it’s taking over the leasing and management of the “AURA“

shopping center that has recently celebrated the start of construction in Yaroslavl. ECE was

also awarded the management contract for the “GoodZone“ in Moscow, opening at

the end of 2012. Not surprising, given the success of its first center in Moscow, the

“Vremena Goda“ premium mall. Under the management of ECE, turnover was

increased by 28% last year.

Shopping | Office | Traffic | Industries

ECE Projektmanagement G.m.b.H. & Co. KGHeegbarg 30, 22391 Hamburg, GermanyPhone: +49 (0)40 60606-0, Fax: +49 (0)40 60606-6230www.ece.com, info@ece.com

Visit us at EXPO REAL

Stand B2.340

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DEVELOPMENT Laurent Morel, CEO of Klépierre, talks about the company’s new strategyGASTRONOMY Frooters has one of the most innovative retail concepts in GermanyTURKEY The acquisition of land by foreigners – new legal rules

Airports, trains stations, etc. Why and how the shopping center industry arrived at transportation hubs.

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alExandER otto

Chief Executive Officer of ECE

susTainabiliTy: eco-babble or business MoDel?TexT: Mr. alexanDer oTTo, iMaGe: ece

Nowadays, everyone is “sustainable.” 14.3 million Google hits show that the topic is fully established, at least verbally. There is no com-pany that does not have a solar panel on its roof or install energy-saving lamps or water-saving flush buttons on its toilets. All of this is certainly helpful, but the difference between actionism and sus-tainability is the perspective: Do I want to improve my image in the short term or do I want to become sustainably successful in the long term? In other words: Can I change my business model in such a way that sustainability becomes not a profit-reducing add-on, but a profit-increasing key component?The prerequisites for this are promising: Resources are becoming dearer, legislators stricter, and investors more contemplative when it comes to the later resale price of non-sustainable real estate. This is why fund managers are increasingly placing their trust in green buildings and developing binding sustainability conditions for the purchase of buildings. In addition, investment decisions are increas-ingly being made on the basis of life cycle costs. A company that wants to assert itself in the market, both now and in the future, should not regard these changes as challenges, but instead make use of them as opportunities. Here are two examples:Following a Germany-wide invitation to tender, we commissioned Karlsruhe University to work with experts from all ECE’s specialist fields to develop a catalog of criteria for sustainable shopping cen-ters – from planning through to center operation. The manual is now used by all project managers as an instruction manual for new buildings and extensions. To enable us to measure our success, we requested the German Sustainable Building Council (DGNB) to cer-tify every new construction project.A much greater challenge lies in the sustainable redevelopment of existing real estate, which makes up the majority of space by a wide margin. Adjusting real estate to new conditions is rarely a short-term process. That is why we want to gradually optimize our port-folio and thus not only preserve the existing values, but also en-hance them wherever possible. We took a first step towards this by

developing a manual for the sustainable operation of high-frequen-cy real estate. It provides our on-site center managers and techni-cal managers with precise instructions for action based on best practice examples. In the second step, we are now improving and standardizing the collection of relevant data in the centers. Subse-quently, we will analyze the strengths and weaknesses of the indi-vidual centers and make suggestions for the improvement of exist-ing real estate. Of course, none of this is easy. Some of it is still technically impos-sible and we are still lacking financing models for much of it in the field of commercial real estate. This is because there is a lack of fiscal incentives and, in contrast to residential real estate, sustain-able investments cannot be transferred to the tenant even if they save on incidental rental expenses. But one thing has to be clear to every entrepreneur: non-sustainable real estate is about as safe a bet as gas-guzzling car engines.

MaRC-CHRistian RiEbE

Founder and CEO of Location Group

TexT: Mr. Marc-chrisTian riebe, iMaGe: locaTion Group

The sTore as a label’s business carD anD fiGureheaD

The location of a boutique is the key to its success , especially with luxury brands. In addition to the right address, i.e. one in an upscale shopping street, other factors also play a major role. Corners are clearly preferred because of their much higher visibility. Even sun-light is crucial. Many labels do not even consider sections of streets that are mainly in the shade. A building’s architectural features are also taken into account when choosing a location. To Apple, for ex-ample, it is very important that a store’s glass staircase can be placed in a specific location. This has not changed even after the death of Steve Jobs, who always carefully examined possible sites personally.

A good neighborhood is also required. The proverb “birds of a feath-er flock together” also applies to luxury locations. Once Louis Vuit-ton is there, others are sure to follow. Gucci (which is often followed by Tom Ford), Hermès, and Prada are also important driving forces for shopping destinations. Munich’s Residenz, Perusa, and Diener streets will certainly gain in attractiveness because of Louis Vuit-ton’s new Maison.

The Tuchlauben project between Am Hof and the Graben/Kohl-markt in Vienna opens up the possibility to extend the city’s most exclusive shopping street considerably. Tuchlauben offers national and international companies in the luxury retail segment new ex-pansion opportunities on a retail space of 11,000 sq m. The luxury brand Louis Vuitton is opening its approximately 1,800-sq-m flag-ship store at Tuchlauben and will function as the site’s anchor ten-ant. Miu Miu and Prada, as well as several other luxury brands, will also be present.

Having mainstream brands nearby is also not necessarily a disad-vantage because they increase the number of passersby. Moreover, many brands orient their store concepts around the upper classes. Massimo Dutti and Uterqüe are good examples of this. The strate-gic development of new prime locations like Tuchlauben in Vienna or the Kö-Bogen in Dusseldorf are still the exception to the rule, however. They require visionary entrepreneurs with sufficient cap-ital, risk tolerance, and a finger on the pulse of market trends.