cadillac fairview
WHERE CANADA SHOPS
THE BEST BRANDS. THE MOST VALUABLE SHOPPERS. THERE’S ONLY ONE THING OUR SHOPPING CENTRES ARE MISSING:
you.
No other commercial real estate developer can set you up for success like Cadillac Fairview. With us, your brand will be available to Canada’s most valuable shoppers. Our network of 20 centres covers virtually every major market, coast-to-
TABLE OF CONTENTS
coast, and offers the best sales per
Intro........................................................ 3
We’re committed to success. Over
Why Businesses Choose Canada............ 4 Why Businesses Choose Cadillac Fairview...................................... 8
square foot in the country.
the last decade we’ve narrowed our portfolio to focus on investing billions in our best properties. Going forward, we’re going to change the way Canadians experience retail.
Our Five Core Pillars.............................. 12 Our Portfolio.......................................... 20
You’ll find we’re just as committed
Closing................................................. 22
We’re Where Canada Shops.
to your success. Come work with us.
3
WHY BUSINESSES CHOOSE C A N A D A 5
WE HAVE HIGHER PRODUCTIVITY THAN THE U.S. Productivity per square foot in Canada is 16% higher than our neighbours to the south. The reasons for this are twofold: i) median household income in Canada is substantially higher, ii) there is limited space for commercial development. This means that Canadians have, on average, more money to spend, and fewer shopping centres to do it in. That’s why about 30% of Canadians shop at Cadillac Fairview shopping centres every year.
CANADA IS A GLOBAL PLAYER ■■53% of the top retail organizations in Canada were foreign owned and operated in 2011.3 ■■U.S. retailers typically have higher sales in Canada vs. their domestic base. ■■Of the top 20 retailers (by sales) in Canada, 10 are American-based, and 4 of these companies being among the top 10 retailers operating in the country.3 ■■Canadians outspend Americans in all categories.
2013 Annual ICSC Sales Productivity for Non-Anchor Tenants in Canadian Malls & U.S. Malls (CAD).
$815 -
$670 -
$573 -
2
1 Higher Household Income (HHI) Median HHI Canada vs. U.S. (USD)1
$67,075 $52,250
Limited Retail Space ■■Populations are concentrated in smaller areas, leading to limited space for commercial development. Retail sq. ft. per capita2
14 SQ. FT. 23 SQ. FT. ■■Only 3 shopping centres have been built in Canada in the last 25 years.
1
Stats Can 2013, 2013 - U.S. Census Bureau
2
The World is Coming. The global challenge of Retailing in Canada, - Deloitte, 2013
3
Office of Consumer Affairs, Industry Canada 2013
7
WHY BUSINESSES CHOOSE CADILLAC FAIRVIEW 9
CADILLAC FAIRVIEW STORY
1974
IN THE BEGINNING
2005
SHIFT IN CANADIAN RETAIL
2005-2010
2015
CADILLAC FAIRVIEW’S SUCCESS SPEAKS FOR ITSELF
Cadillac Development Company (est. 1953) and Fairview Corporation (est. 1958) merge to form Cadillac Fairview.
With the onset of eCommerce and growing uncertainty for regional shopping centres, Cadillac Fairview recognized that not every mall would experience a downturn – just the weak ones.
CADILLAC FAIRVIEW STRATEGIC ALIGNMENT Cadillac Fairview took this cue to strategically align our business, focusing on 20 strong shopping centres and selling our B and C malls.
2010
ASSET INVESTMENT
2012
RETAIL EVOLUTION
2014
LANDMARK LOCATIONS
Consolidating our properties allowed Cadillac Fairview to invest in an aggressive redevelopment campaign – to the tune of 4.2 billion dollars. Massive change can only come from putting more money in our shopping centres – even more than the top four American REITs combined.
Development dollars aren’t enough to achieve best-in-class retail. That’s why Cadillac Fairview decided to control its own destiny and buy back leases to make room for new, stronger players. This strategy allowed us to secure landmark locations and attract best-in-class retailers like Nordstrom and Saks Fifth Avenue.
Our strategy came to life when 5 of Nordstrom’s 6 Canadian locations, and both of Saks Fifth Avenue’s flagship stores were chosen to be in Cadillac Fairview shopping centres.
Let us show you how through our 5 core pillars:
1. Catalyst for Canadian Retail Success 2. Strong Portfolio of Properties 3. Continuous Investment and Evolution 4. Well-Funded and Financially Sound Foundation 5. Partners in Success
11
Pacific Centre
Richmond Centre
CATALYST FOR CANADIAN RETAIL SUCCESS. No other partner can set you up for success like we can.
20
Montréal Properties (4)
Polo Park
Chinook Centre
1
Champlain Place
Market Mall
Rideau Centre
Masonville Place
PREMIER SHOPPING CENTRES IN MAJOR MARKETS ACROSS CANADA
Greater Toronto Area Properties (6) Fairview Park
Lime Ridge Mall
Cadillac Fairview holds
SHARE OF MAJOR CANADIAN MARKETS
With us, your brand can call virtually every major market in
30%
of Canadian Retail Sales
Canada home. Our average sales per square foot is almost $200 more than the national average. Plus, you’ll enjoy the backing of a team with a reputation for helping some of the biggest names in retail write their success stories. ■■ 34 million sq. ft. of leasable space ■■ Property value worth $18 billion ■■ Over 3000 stores ■■ 66% of Canadians live within 100km of a Cadillac Fairview
21%
VANCOUVER
36%
CALGARY
25%
TORONTO
32%
MONTREAL
57%
WINNIPEG
20%
OTTAWA
Shopping Centre
13
2
A STRONG PORTFOLIO
Cadillac Fairview Portfolio vs. ICSC Canada + US Sales Per sq. ft. $776
$800
$700
$748
$754
$678 $634 $605
$588
$600
$500
$400
$300 2007
2008
2009
Cadillac Fairview Sales PSF (CA$)
We own more than half of the best shopping centres in Canada.
and developers of commercial real estate
$1000
in 2014, our sales growth outpaced the national retail average despite our strongest properties being under construction. If you're looking to enter or expand in the Canadian retail sector, you couldn't ask for a better partner.
Sales Per sq. ft.
$1200
about once every 7 weeks (240 million). And
ICSC Canada Sales PSF (CA$)
2012
2013
ICSC US Sales PSF (US$)
$1400
We're one of the largest owners, operators,
Canada passes through our shopping centres
2011
Top Performing Malls in Canada
How strong is Cadillac Fairview's portfolio?
in North America. The entire population of
2010
$800 $600 $400 $200 $0
1
2
3
4
5
6
7
8
9 10 11 12 13 14 15 16 17 18 19 20 Ranking
COMPETITOR CENTRES
CADILLAC FAIRVIEW SHOPPING CENTRES
15
$26M FAIRVIEW PARK MALL
$77M
POLO PARK
3 CONTINUOUS INVESTMENT AND EVOLUTION OF PROPERTIES You don’t stay ahead by standing still.
$105M MARKVILLE S.C.
$490M SHERWAY GARDENS
$45M PROMENADES ST-BRUNO
$520M TORONTO EATON CENTRE
$19M
LIME RIDGE MALL
$70M
$2.5B
RICHMOND CENTRE
IN RETAIL INVESTMENT
There’s a reason why retailers partner with us when they choose to enter Canada. They're committed to staying ahead of their competitors. They're willing to invest in success. So are we. That's why, over the
$353M
$20M
PACIFIC CENTRE
SHOPS AT DON MILLS
last decade, we've made strategic decisions about where best to spend our time and
$66M
energy, and why we're investing $4.2 billion in development and $2.5 billion in retail development alone.
$366M RIDEAU CENTRE
MASONVILLE PLACE
$317M CHINOOK CENTRE
* 2014 Investment Figures.
17
4 WELL FUNDED AND FINANCIALLY SOUND The retail sector is changing rapidly. To be successful, you need partners with the strategic foresight to see the challenges ahead, and the capital needed to address them. With Cadillac Fairview, you'll be part of a team that is wholly owned by the Ontario Teacher's Pension Plan – one of the top 20 pension plans in the world.
THE OPENING OF OUR FIRST SAKS FIFTH AVENUE STORES AT TORONTO EATON CENTRE AND SHERWAY GARDENS BRINGS CANADIAN SHOPPERS THE LUXURY FASHION AND EXCEPTIONAL SERVICE FOR WHICH SAKS IS RENOWNED. WE APPRECIATE CADILLAC FAIRVIEW’S STRONG COMMITMENT TO PROVIDING US WITH THE OPPORTUNITY TO BE PART OF TORONTO’S PREMIER LUXURY SHOPPING DESTINATION.” RICHARD BAKER, HBC GOVERNOR AND CEO; SAKS PRESS RELEASE - JANUARY 2014
5 PARTNERS IN SUCCESS We’re committed to changing the way Canadians experience retail. Good is not enough. Today, the shopping experience must be great. And to accomplish this, great partnerships must be established. We’re more than landlords; we’re here to do everything we can to help you drive sales. Only then can we both succeed. Join us. Let us introduce you to Canada’s most valuable shoppers.
CADILLAC FAIRVIEW HAS BEEN INSTRUMENTAL IN HELPING US GET STARTED IN CANADA, AND WE’RE THRILLED TO BE PART OF THESE PREMIER SHOPPING DESTINATIONS.” ERIK NORDSTROM, PRESIDENT OF S TO R E S, N O R D S T R O M; C A D I L L AC FA I R VIEW FOUR STORE DEAL SEPTEMBER 2013
19
WESTERN PORTFOLIO Richmond Centre, Vancouver BC Pacific Centre, Vancouver BC Chinook Centre, Calgary AB Market Mall, Calgary AB Polo Park, Winnipeg MB
ONTARIO PORTFOLIO Masonville Place, London ON
Lime Ridge Mall, Hamilton ON Fairview Park Mall, Kitchener ON The Promenade, Toronto ON Sherway Gardens, Toronto ON Toronto Eaton Centre, Toronto ON Shops at Don Mills, Toronto ON Fairview Mall, Toronto ON Markville Shopping, Markham ON
EASTERN PORTFOLIO Rideau Centre, Ottawa ON
Carrefour Laval, Montréal QC Galeries D’Anjou, Montréal QC Fairview Pointe Claire, Montréal QC Promenades St-Bruno, Montréal QC Champlain Place, Dieppe NB
21
CADILLAC FAIRVIEW: WHERE CANADA SHOPS WE’RE CHANGING THE WAY CANADIANS EXPERIENCE RETAIL FROM GOOD TO GREAT. Building strong relationships with clients is at the heart of that. We don’t just want to be a landlord; we want to help our clients drive sales… it’s good for both of us. Come join us. A partnership with Cadillac Fairview connects you with Canada’s most valuable shoppers.
CFRETAIL.COM
THE BEST BRANDS. THE MOST VALUABLE SHOPPERS. THERE’S ONLY ONE THING OUR SHOPPING CENTRES ARE MISSING:
you.
No other commercial real estate developer can set you up for success like Cadillac Fairview. With us, your brand will be available to Canada’s most valuable shoppers. Our network of 20 centres covers virtually every major market, coast-to-
TABLE OF CONTENTS
coast, and offers the best sales per
Intro........................................................ 3
We’re committed to success. Over
Why Businesses Choose Canada............ 4 Why Businesses Choose Cadillac Fairview...................................... 8
square foot in the country.
the last decade we’ve narrowed our portfolio to focus on investing billions in our best properties. Going forward, we’re going to change the way Canadians experience retail.
Our Five Core Pillars.............................. 12 Our Portfolio.......................................... 20
You’ll find we’re just as committed
Closing................................................. 22
We’re Where Canada Shops.
to your success. Come work with us.
3
WHY BUSINESSES CHOOSE C A N A D A 5
WE HAVE HIGHER PRODUCTIVITY THAN THE U.S. Productivity per square foot in Canada is 16% higher than our neighbours to the south. The reasons for this are twofold: i) median household income in Canada is substantially higher, ii) there is limited space for commercial development. This means that Canadians have, on average, more money to spend, and fewer shopping centres to do it in. That’s why about 30% of Canadians shop at Cadillac Fairview shopping centres every year.
CANADA IS A GLOBAL PLAYER ■■53% of the top retail organizations in Canada were foreign owned and operated in 2011.3 ■■U.S. retailers typically have higher sales in Canada vs. their domestic base. ■■Of the top 20 retailers (by sales) in Canada, 10 are American-based, and 4 of these companies being among the top 10 retailers operating in the country.3 ■■Canadians outspend Americans in all categories.
2013 Annual ICSC Sales Productivity for Non-Anchor Tenants in Canadian Malls & U.S. Malls (CAD).
$815 -
$670 -
$573 -
2
1 Higher Household Income (HHI) Median HHI Canada vs. U.S. (USD)1
$67,075 $52,250
Limited Retail Space ■■Populations are concentrated in smaller areas, leading to limited space for commercial development. Retail sq. ft. per capita2
14 SQ. FT. 23 SQ. FT. ■■Only 3 shopping centres have been built in Canada in the last 25 years.
1
Stats Can 2013, 2013 - U.S. Census Bureau
2
The World is Coming. The global challenge of Retailing in Canada, - Deloitte, 2013
3
Office of Consumer Affairs, Industry Canada 2013
7
WHY BUSINESSES CHOOSE CADILLAC FAIRVIEW 9
CADILLAC FAIRVIEW STORY
1974
IN THE BEGINNING
2005
SHIFT IN CANADIAN RETAIL
2005-2010
2015
CADILLAC FAIRVIEW’S SUCCESS SPEAKS FOR ITSELF
Cadillac Development Company (est. 1953) and Fairview Corporation (est. 1958) merge to form Cadillac Fairview.
With the onset of eCommerce and growing uncertainty for regional shopping centres, Cadillac Fairview recognized that not every mall would experience a downturn – just the weak ones.
CADILLAC FAIRVIEW STRATEGIC ALIGNMENT Cadillac Fairview took this cue to strategically align our business, focusing on 20 strong shopping centres and selling our B and C malls.
2010
ASSET INVESTMENT
2012
RETAIL EVOLUTION
2014
LANDMARK LOCATIONS
Consolidating our properties allowed Cadillac Fairview to invest in an aggressive redevelopment campaign – to the tune of 4.2 billion dollars. Massive change can only come from putting more money in our shopping centres – even more than the top four American REITs combined.
Development dollars aren’t enough to achieve best-in-class retail. That’s why Cadillac Fairview decided to control its own destiny and buy back leases to make room for new, stronger players. This strategy allowed us to secure landmark locations and attract best-in-class retailers like Nordstrom and Saks Fifth Avenue.
Our strategy came to life when 5 of Nordstrom’s 6 Canadian locations, and both of Saks Fifth Avenue’s flagship stores were chosen to be in Cadillac Fairview shopping centres.
Let us show you how through our 5 core pillars:
1. Catalyst for Canadian Retail Success 2. Strong Portfolio of Properties 3. Continuous Investment and Evolution 4. Well-Funded and Financially Sound Foundation 5. Partners in Success
11
Pacific Centre
Richmond Centre
CATALYST FOR CANADIAN RETAIL SUCCESS. No other partner can set you up for success like we can.
20
Montréal Properties (4)
Polo Park
Chinook Centre
1
Champlain Place
Market Mall
Rideau Centre
Masonville Place
PREMIER SHOPPING CENTRES IN MAJOR MARKETS ACROSS CANADA
Greater Toronto Area Properties (6) Fairview Park
Lime Ridge Mall
Cadillac Fairview holds
SHARE OF MAJOR CANADIAN MARKETS
With us, your brand can call virtually every major market in
30%
of Canadian Retail Sales
Canada home. Our average sales per square foot is almost $200 more than the national average. Plus, you’ll enjoy the backing of a team with a reputation for helping some of the biggest names in retail write their success stories. ■■ 34 million sq. ft. of leasable space ■■ Property value worth $18 billion ■■ Over 3000 stores ■■ 66% of Canadians live within 100km of a Cadillac Fairview
21%
VANCOUVER
36%
CALGARY
25%
TORONTO
32%
MONTREAL
57%
WINNIPEG
20%
OTTAWA
Shopping Centre
13
2
A STRONG PORTFOLIO
Cadillac Fairview Portfolio vs. ICSC Canada + US Sales Per sq. ft. $776
$800
$700
$748
$754
$678 $634 $605
$588
$600
$500
$400
$300 2007
2008
2009
Cadillac Fairview Sales PSF (CA$)
We own more than half of the best shopping centres in Canada.
and developers of commercial real estate
$1000
in 2014, our sales growth outpaced the national retail average despite our strongest properties being under construction. If you're looking to enter or expand in the Canadian retail sector, you couldn't ask for a better partner.
Sales Per sq. ft.
$1200
about once every 7 weeks (240 million). And
ICSC Canada Sales PSF (CA$)
2012
2013
ICSC US Sales PSF (US$)
$1400
We're one of the largest owners, operators,
Canada passes through our shopping centres
2011
Top Performing Malls in Canada
How strong is Cadillac Fairview's portfolio?
in North America. The entire population of
2010
$800 $600 $400 $200 $0
1
2
3
4
5
6
7
8
9 10 11 12 13 14 15 16 17 18 19 20 Ranking
COMPETITOR CENTRES
CADILLAC FAIRVIEW SHOPPING CENTRES
15
$26M FAIRVIEW PARK MALL
$77M
POLO PARK
3 CONTINUOUS INVESTMENT AND EVOLUTION OF PROPERTIES You don’t stay ahead by standing still.
$105M MARKVILLE S.C.
$490M SHERWAY GARDENS
$45M PROMENADES ST-BRUNO
$520M TORONTO EATON CENTRE
$19M
LIME RIDGE MALL
$70M
$2.5B
RICHMOND CENTRE
IN RETAIL INVESTMENT
There’s a reason why retailers partner with us when they choose to enter Canada. They're committed to staying ahead of their competitors. They're willing to invest in success. So are we. That's why, over the
$353M
$20M
PACIFIC CENTRE
SHOPS AT DON MILLS
last decade, we've made strategic decisions about where best to spend our time and
$66M
energy, and why we're investing $4.2 billion in development and $2.5 billion in retail development alone.
$366M RIDEAU CENTRE
MASONVILLE PLACE
$317M CHINOOK CENTRE
* 2014 Investment Figures.
17
4 WELL FUNDED AND FINANCIALLY SOUND The retail sector is changing rapidly. To be successful, you need partners with the strategic foresight to see the challenges ahead, and the capital needed to address them. With Cadillac Fairview, you'll be part of a team that is wholly owned by the Ontario Teacher's Pension Plan – one of the top 20 pension plans in the world.
THE OPENING OF OUR FIRST SAKS FIFTH AVENUE STORES AT TORONTO EATON CENTRE AND SHERWAY GARDENS BRINGS CANADIAN SHOPPERS THE LUXURY FASHION AND EXCEPTIONAL SERVICE FOR WHICH SAKS IS RENOWNED. WE APPRECIATE CADILLAC FAIRVIEW’S STRONG COMMITMENT TO PROVIDING US WITH THE OPPORTUNITY TO BE PART OF TORONTO’S PREMIER LUXURY SHOPPING DESTINATION.” RICHARD BAKER, HBC GOVERNOR AND CEO; SAKS PRESS RELEASE - JANUARY 2014
5 PARTNERS IN SUCCESS We’re committed to changing the way Canadians experience retail. Good is not enough. Today, the shopping experience must be great. And to accomplish this, great partnerships must be established. We’re more than landlords; we’re here to do everything we can to help you drive sales. Only then can we both succeed. Join us. Let us introduce you to Canada’s most valuable shoppers.
CADILLAC FAIRVIEW HAS BEEN INSTRUMENTAL IN HELPING US GET STARTED IN CANADA, AND WE’RE THRILLED TO BE PART OF THESE PREMIER SHOPPING DESTINATIONS.” ERIK NORDSTROM, PRESIDENT OF S TO R E S, N O R D S T R O M; C A D I L L AC FA I R VIEW FOUR STORE DEAL SEPTEMBER 2013
19
WESTERN PORTFOLIO Richmond Centre, Vancouver BC Pacific Centre, Vancouver BC Chinook Centre, Calgary AB Market Mall, Calgary AB Polo Park, Winnipeg MB
ONTARIO PORTFOLIO Masonville Place, London ON
Lime Ridge Mall, Hamilton ON Fairview Park Mall, Kitchener ON The Promenade, Toronto ON Sherway Gardens, Toronto ON Toronto Eaton Centre, Toronto ON Shops at Don Mills, Toronto ON Fairview Mall, Toronto ON Markville Shopping, Markham ON
EASTERN PORTFOLIO Rideau Centre, Ottawa ON
Carrefour Laval, Montréal QC Galeries D’Anjou, Montréal QC Fairview Pointe Claire, Montréal QC Promenades St-Bruno, Montréal QC Champlain Place, Dieppe NB
21
CADILLAC FAIRVIEW: WHERE CANADA SHOPS WE’RE CHANGING THE WAY CANADIANS EXPERIENCE RETAIL FROM GOOD TO GREAT. Building strong relationships with clients is at the heart of that. We don’t just want to be a landlord; we want to help our clients drive sales… it’s good for both of us. Come join us. A partnership with Cadillac Fairview connects you with Canada’s most valuable shoppers.
CFRETAIL.COM
