PBC 2013 (prf1) - Sonae Sierra 2014.pdf · comPany Profile III s s Sonae Sierra is the international shopping centre specialist that is passionate about creating unique shopping experiences

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SuStainableShoPPing centreS

Specialists in creating…

2014 SuStainability Performanceby Country

http://www.sonaesierra.com

.01SONAE SIERRA 2014 Sustainability Performance by Country

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about this report 01

Who we are 02

company profile 03

Sustainability objectives 04

Sonae Sierra in Portugal 07

Sonae Sierra in brazil 09

Sonae Sierra in germany 11

Sonae Sierra in greece 13

Sonae Sierra in italy 15

Sonae Sierra in romania 17

Sonae Sierra in Spain 19

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about thiS rePort

this report provides a summary overview of Sonae Sierra’sperformance in 2014 across seven different countries thatwe operate (where we own shopping centres) in: Portugal,brazil, germany, greece, italy, romania and Spain.

We have also published an integrated Economic,Environmental and Social Report (available on ourwebsite) which covers our overall performance and drawsheavily on the International Integrated ReportingCouncil’s (IIRC) Integrated Reporting Framework, theGlobal Reporting Initiative (GRI) G4 SustainabilityReporting Guidelines and the Construction and RealEstate Sector Disclosures (CRESD).

As such, it provides our stakeholders with a more robustand detailed account of our current strategy andperformance in 2014, and demonstrates the alignmentbetween our core business and sustainability goals.

http://sonaesierra.com/en-gb/sustainability/reports/reports/2014.aspx


Who We are

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Sonae Sierra is a specialist at the cutting edge of shoppingcentre development, ownership, management and thedelivery of professional services in geographies as diverseas Europe, South America, North Africa and Asia.

Passionate about bringing innovation and excitement to the shopping industry since 1989,Sonae Sierra has been interpreting trends and spearheading a movement that has definedthe shopping centres of the future.

Through our integrated strategy of investment, development, property management andthe provision of professional services, we have built an indisputable track record and a uniqueunderstanding of the business and markets we operate in.

le terrazze, Italy loop5, Germany

boulevard londrina Shopping, Brazil


comPany Profile

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Sonae Sierra is the internationalshopping centre specialist that ispassionate about creating uniqueshopping experiences. Incorporatedin Portugal in 1989, Sonae SGPS(Portugal) and Grosvenor GroupLimited (United Kingdom) eachown 50% of the Company.

Our proactive approach to business ensures that we have thenecessary capital required to maintain and market our shoppingcentres, attract new and innovative tenants and to increase ourcentres’ asset value. This strategy has allowed us to developunique know-how and has earned us international recognition forthe development of innovative products and the delivery of highquality property management services. This has enabled us todevelop our activity as a professional service provider.

We have an integrated business which encompasses owning,developing and managing shopping centres as well as theprovision of professional services in geographies as diverse asEurope, South America, North Africa and Asia. As a pioneer in thecreation of themed shopping centres, Sonae Sierra remains aleader in the development of unique concepts for exceptionalshopping centres that offer great experiences and turn customersinto fans.

key factS

aS of 31 december 2014

7 projects2.3 million m28846

rent received at oWnedShoPPing centreS

million

viSitS made to managedShoPPing centreS

million

tenant SaleS at managedShoPPing centreS

million

ShoPPing centreS oWnedWith an omv of €6 billion

total managed glaShoPPing centreSmanaged and/or leaSed

direct emPloyeeS

€379.7 439.8 €5,243 1,106

under develoPment,including three forthird PartieS

Investmentand asset

managementDevelopment Management

and letting

Our Clients’ShoppingCentres

ShoppingCentres ownedby Sonae Sierraand its Partners

KnowledgeProvision

Shopping centres from a to Z

SonaeSierra


SuStainability objectiveS

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We have identified five long-term priorities that will delivershared value for our business, society and the environment.Addressing such issues is intended to address the principlesustainability risks facing our operations and safeguard ourcontinued capacity to do business.

Safe PeoPle and eco-efficiency

Making sure that our shopping centres are consistently run to the highest standards of safety and eco-efficiency is a day-to-daypriority for Sonae Sierra as a means to safeguard human and natural capital. We operate a best in class, integrated Safety, Health andEnvironment Management System (SHEMS) which enables us to effectively manage the main environmental aspects and safety andhealth risks during the lifecycle of a shopping centre. Through our SHEMS, we provide a better service and/or workplace to tenants,shopping centre visitors, professional services clients, employees and suppliers whilst reducing operating costs for our business.

We have identified long-term objectives supported by annual targets to drive continuous improvement in our SHEMS and across theimpact areas that sit under the umbrella of safe people and eco-efficiency:

energy and climate:l Achieve an 85% reduction in GHG emissions per m2 of GLA, by 2020, compared to the 2005 level (GHG protocol scopes 1 and 2,

plus business air travel).

l Strive to increase the energy efficiency of our operations, aiming to attain a maximum average electricity consumption of400 kWh/m2 (mall and toilet area) per year across Sonae Sierra owned shopping centres, by 2020.

l Implement climate change adaption measures identified in our 2013 climate change study, by 2020.

Waterl Attain a level of water consumption at or below 3 litres per

visit (aggregated across all Sonae Sierra owned shoppingcentres), by 2020.

l Ensure that all discharges to local water courses complywith Sonae Sierra wastewater quality standards andpollutant limits, by 2020.

Wastel Increase the proportion of total waste (by weight) that

is recycled, recovered or reused and obtain a minimumrecycling rate of 65% across our Sonae Sierra ownedshopping centres, by 2020.

l Reduce the proportion of waste (by weight) that is sent tolandfill below a maximum limit of 18% across Sonae Sierraowned shopping centres, by 2020.

l Increase the proportion of total waste (by weight) thatis recycled, recovered or reused and obtain a minimumrecycling rate of 90% across our main corporate offices,by 2020.

l Maintain a high level of performance in terms of wasterecycling in construction projects, and aim to increase theproportion of construction materials with recycled content.

freccia rossa, Italy


SuStainability objectiveS (CONTINUED)

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biodiversity & habitatsl Promote the use of previously developed land or brownfield land for new Sonae Sierra shopping centre projects and protect and

enhance biodiversity wherever possible.

l Strive to protect and enhance biodiversity on both existing Sonae Sierra sites and new projects and add value to new projects byactively integrating biodiversity whenever possible, taking into account the regional context.

Safety & healthl Enhance the well-being of our workforce and reduce the rate and severity of workplace accidents and occupational diseases, aiming

towards zero.

l Anticipate and prevent all safety risks on Sonae Sierra construction sites, minimising the number of accidents and their severity,aiming towards zero.

l Provide a safe environment for everyone who visits or works within Sonae Sierra shopping centres, aiming towards zero accidents,and promote safe and healthy conscious behaviour among our tenants, suppliers and visitors.

Safety, health and environment management Systeml Obtain a building certification for all new shopping centres and certify the Safety, Health and Environment Management System for all

Sonae Sierra construction projects and owned assets that we have managed for two or more years in a maximum period of three years.

reSource reSilience

We are investigating ways to future-proof our assets by becomingenergy independent and reusing water on our sites, exploiting thelatest innovations and technology in natural resource managementto rethink processes. This will protect our assets against naturalresource shortages and cost increases, and reduce operating costsin the short to medium term through alternative energy and watermanagement strategies. Altogether, this approach will enable us toreduce the detrimental impacts of our Company on the environmentand help us to maintain the essential services that nature provides.

We have set the following long-term objectives:

l At least 10% of total water consumed at Sonae Sierra ownedshopping centres to be reused “grey water” or harvested rainwater,by 2020.

l Develop and implement a long-term strategy to ensure a securewater supply at our owned shopping centres, with a particularfocus on locations that are vulnerable to water shortages,by 2020.

ProSPerouS retailerS

We are taking action to partner with current and potential tenants tomake their businesses more resilient, in particular enabling small, localand sustainable businesses to thrive in circumstances in which theymight not have done so otherwise. At the same time, this approachsupports our business strategy by allowing us to promote new conceptsthat deliver unique experiences to customers. Consequently, we cansustain our income streams and maintain innovation at the heart ofSonae Sierra’s business values.

We have set the following future objectives:

l Continue to roll out Coop Stores at vacant units and pioneerfurther projects to support local businesses and diversify our offerto shopping centre visitors.

l Launch ‘My 1st Work Experience’ an initiative which aims to supportrecent graduates in starting their own retail business by providingbusiness planning, project development and funding support and guidance.

Parque d. Pedro Shopping, Brazil

.06SONAE SIERRA 2014 Sustainability Performance by CountryIII s

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SuStainability objectiveS (CONTINUED)

leveraging knoWledge

We aim to empower our employees by building their skills and knowledge, unleashing their potential on an individual basis and raisingthe standard of knowledge attainment at a collective level in the communities where we operate. By doing so, we can enhance theintellectual capital of our organisation and the external pool of talent from which we aim to attract ambitious people to join our workforce.

We have set the following long-term objectives:

l Sierra with Universities: To partner with universities and either share our knowledge or create new knowledge with students.

l We Share with Communities: To extend our knowledge to the employees of the organisations that we wish to maintain strong linkswith such as municipalities, fire brigades, police, and local authorities.

l Engage Tenants through Knowledge: To help develop tenants or potential tenants (both owners and employees) by strengtheningtheir business skills and know-how.

SuStainable lifeStyleS

We will use our reach and public influence to encourage visitors to make the right choices. This involves promoting healthy, green andlocal goods and services; improving wellbeing through health activities in our shopping centres; and creating a sense of place. Thisapproach enables us to increase visitors’ satisfaction and loyalty, thereby increasing footfall in our shopping centres, and adds to ourbrand value as we visibly support health, wellbeing and environmentally-conscious behaviour.

We aim to promote positive behavioural change in relation to three main focus areas:

l Environment: Promote best practice in environmental stewardshipand enable visitors to make educated decisions about how todevelop lifestyles with a low environmental impact.

l Social: Promote civic involvement and community engagementthrough volunteering.

l Health: Develop a strategy to promote healthy lifestylesamongst consumers.

norteShopping, Portugal

18 15

14

209

13

22

87

5

19

6 23

10

12

161721

11 41

Azores Islands Madeira Island


Sonae Sierra in Portugal

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We are the market leader in Portugal, the country where we wereincorporated in 1989 and where our headquarters are based. As of 31 December 2014, we owned 21 shopping centres across the country.

2014 was a positive year for our Portuguese business with ourportfolio outperforming the market and exceeding our expectations.Tenant sales were up 5.6% on a like-for-like basis and rental incomeincreased by 2.8%. Our occupancy rate also increased to 98%.In the wider economy GDP grew by 0.9% and we witnessed amodest increase in consumer confidence, which we expect tocontinue into 2015.

Our performance benefited from our tenant mix management whichhas ensured that we offer visitors a vibrant and diverse retailexperience that reflects modern consumer preferences. In 2014 wefinalised the refurbishment of NorteShopping and work began atCentro Vasco da Gama which, when complete, will deliver a fresh,contemporary look and feel to this shopping centre.

2014 also saw the roll out of our Coop Store project, opening fournew stores and further demonstrating our support for localentrepreneurs as part of our commitment to prosperous retailers.As part of our strategy to promote sustainable lifestyles, we havepartnered with ENTRAJUDA and launched their ‘Help Spot’ platformin all 21 of our shopping centres. This platform connects shoppingcentre visitors to local charitable organisations that can benefitfrom their help.

Furthermore, we launched the latest addition to our environmentalawareness campaign, ‘SOS Planeta’, an interactive digitalexperience that demonstrates how everyday behaviours can havea negative impact on the environment. The campaign ran in 17 shopping centres across Portugal attracting 15,351 participants.

1: 8ª Avenida

2: AlbufeiraShopping

3: AlgarveShopping

4: ArrábidaShopping

5: CascaiShopping

6: C.C. Continente de Portimão

7: Centro Colombo

8: Centro Vasco da Gama

9: CoimbraShopping

10: Estação Viana Shopping

11: GaiaShopping

12: GuimarãeShopping

13: LeiriaShopping

14: LoureShopping

15: MadeiraShopping

16: MaiaShopping

17: NorteShopping

18: Parque Atlântico

19: RioSul Shopping

20: SerraShopping

21: ViaCatarina

New Projects:

22: Centro Bordalo

aWardS and acknoWledgementSl Centro Colombo secured the Gold Prize in the “Public Relations”

category of the ICSC Solal Marketing Awards.l Sonae Sierra was honoured with three awards at the 10th Edition

of the Euromoney Magazine Awards: Best Portuguese DeveloperOverall, Best Portuguese Retail Developer and Best PortugueseMixed Developer.

certificationSl BREEAM In-Use Very Good for Asset Performance and Building

Management at Centro Colombo.

1 This figure corresponds to the total rents invoiced (100%) to tenants of Sonae Sierra owned shopping centres in Portugal, including our Torre Ocidente office building. It hasbeen calculated based on account performance between 1 January 2014 and 31 December 2014.

2 This figure corresponds to the sum of charitable organisations supported in Portugal, as reported by our shopping centres. In cases where two (or more) shopping centres havesupported the same charitable organisation, this has been counted twice (or more times), in order to reflect each individual shopping centre’s commitment.

key achievementSl Reduced GHG emissions per m2 of GLA by 26% in comparison

with 2013.l Reduced electricity consumption per m2 of mall and toilet area

by 6% in comparison with 2013.l Reduced water consumption per visit to our shopping centres

by 6% in comparison with 2013.l Installed a rainwater harvesting system at Centro Vasco da Gama

and a greywater recycling system at LoureShopping.l Opened four new Coop Stores at ArrábidaShopping, LoureShopping,

RioSul Shopping and ViaCatarina.l Launched ’SOS Planeta’ environmental awareness campaign

across 17 shopping centres. l Celebrated the first year of our "Café Memória" partnership with

Alzheimer Portugal Association. This initiative has providedsupport to over 400 Alzheimer suffers and carers, and in 2014 weopened our seventh Café in Portugal.

l Invested and helped raise €262,671 for local community initiativesin 2014, supported 316 charitable organisations2 and dedicated1,347 hours of staff time to community volunteering.

direct emPloyeeS ShoPPing centreS oWned

total: 406

total gla:811,366m2

(21 centres)

viSitS to allShoPPing centreSunder management

rent received at oWnedShoPPing centreS1

174.6m

oPerational coStS develoPment PiPeline

€72m

total gla:24,000m2

(1 project)

€178.3m


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Sonae Sierra in Portugal (CONTINUED)

SuStainability Performance indicatorS

SuStainability caSe StudieS

Performance Best centre(s) 2012 2013 2014 trend 2013-14 in 2014

energy and climate: GHG emissions of the owned portfolio and 0.075 0.023 0.017 Centro Colombo,corporate offices (tCO2e/m2 GLA) � 0.0007 tCO2/m2

energy and climate: Electricity efficiency (excluding tenants) of our 503 479 451 C.C. Continente de owned portfolio (kWh/m2 mall and toilet area) � Portimão, 310 kWh/m2

Water: Water efficiency (excluding tenants) of our owned portfolio 3.1 3.1 2.9� AlbufeiraShopping and(litres/visit) GuimarãeShopping, 1.3 litres/visit

Waste: Total waste recycled as a proportion of waste produced 60% 63% 64%� 8ª Avenida, 84%(% by weight, across our owned portfolio)

tenants: Average occupancy index (% by GLA) 97.2% 97.4% 97.7% AlgarveShopping, LeiriaShopping and NorteShopping, 100%

communities and visitors: Investments in Sustainability initiatives 465,608 349,488 262,671 Centro Colombo, €26,796and other community contributions (€)3

employees: Investment in staff training and development (€ per capita) 342 700 429 –

Safety and health: Number of hours of SPO performed 2,982 2,835 2,512 NorteShopping, 460 hours

total ScoPeS 1 and2 ghg emiSSionS4

12,534 tCO2e

total ScoPe 3 ghg emiSSionS4

241,312 tCO2e

total WaSte Production7

20,159 tonnestotal Water WithdraWal6

766,162 m3

average tenantSatiSfaction index on aScale of 1 (‘not SatiSfied’)to 6 (‘very SatiSfied’)

4.7

total energyconSumPtion5

541,278GJ

training Per emPloyee

34.3Average hours

3 Includes donations collected from shopping centre visitors. 4 Please refer to our Economic, Environmental and Social Report 2014 for a detailed breakdown of the sources of GHG emissions included in our carbon footprint (scopes 1, 2 and 3).5 Our total energy consumption (GRI G4 – EN3) corresponds to our total consumption of fuels, electricity, and chilled/high temperature water (when applicable) across all our

owned shopping centres in Portugal as well as the Lisbon office. Data from the Maia office was excluded since it is in a shared floor/building, with no individual energy meters.6 Includes water reallocated to tenants.7 Includes all owned shopping centres in Portugal and the Lisbon and Maia offices.

further references:

For more information, see the case study on our website.

At CascaiShopping in Portugal, we implemented a project to transformthe internal waste management process, improve working conditions andmake a positive contribution to community wellbeing. Through increasedrecycling and waste optimisation, the project has reduced wastemanagement costs by 35% (a saving of more that €25,660 per year).

further references:


‘SOS Planeta’ is an interactive experience that allows customers toview themselves alongside various future scenarios associated withclimate change and environmental degradation. By seeing themselvesas part of the image, their relationship with abstract environmentalissues became more tangible and personal.

http://www.sonaesierra.com/en-gbtestes/sustainability/history/case-studies/2014.aspx



Sonae Sierra in braZil

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61: Boavista Shopping2: Boulevard Londrina Shopping3: Franca Shopping4: Manauara Shopping5: Parque D. Pedro Shopping6: Passeio das Águas Shopping7: Shopping Campo Limpo8: Shopping Metrópole9: Shopping Plaza Sul10: Uberlândia Shopping

New Projects:

3: Franca Shopping – Expansion

On 31 December 2014, Sonae Sierra Brasil owned ten shoppingcentres. We also managed a further two shopping centres on behalf ofclients. 2014 was another strong year for our Brazilian business withpositive results across all key operational indicators. Tenant salesincreased 7.8% in Reais on a like-for-like basis, our occupancy rateincreased to 95% and like-for-like rental income grew 8.6% (and by15.4% on a whole portfolio level due to the two inaugurations in 2013),a higher rate than any other listed company in the sector. Theseresults, combined with lower cost of operations than our competitors,helped to deliver a 14% increase in net revenue in 2014 demonstratingthe strength of our balance sheet in Brazil.

2014 also marked the entrance of the Otto family as an importantshareholder within the company following their acquisition of U.S-based company DDR Corporation’s 50% share in the joint venturethat owns 67% of Sonae Sierra Brasil and a significant stake in ParqueD. Pedro Shopping.

In 2014 we started work on two important refurbishments whichdemonstrate our approach to extracting maximum value from ourexisting assets. Our R$58.3 million (€18.8 million) investment at ParqueD. Pedro Shopping (São Paulo) will improve the tenant mix, includingthe installation of São Paulo state’s first IMAX cinema and the creationof an additional 13,800m2 of GLA to be used as a convention centre.Future works being prepared include the addition of a further 1,200m2

of GLA to accommodate a new store. We also proceeded to prepare andpre-lease the expansion and refurbishment of Franca Shopping (São Paulo state), involving a €31 million investment to almost doublethe shopping centre’s existing GLA to 30,000m2 and improve itscommercial and leisure offer with 66 new shop units.

Investment in operational efficiency remains a priority for our Brazilianassets, particularly in the context of drought which has put considerablestress on the natural water levels in the São Paulo region. We continueto implement measures to reduce water consumption, and our effortsduring the year focused on interventions at six shopping centres in thisregion, including the installation of waterless urinals, flow restrictors,self-closing taps and increased metering capabilities.

aWardSl Sonae Sierra won Best Retail Developer for Latin America in the

2014 Global 100 Awards.l Boulevard Londrina Shopping and Passeio das Águas Shopping

received an award in the Destaque Digital category of the LIDEAwards (Brazilian Shopping Centres Forum).

l Sonae Sierra Brasil won a gold award in the Events and Promotionscategory of the ICSC Latin Shopping Centre Awards.

l Shopping Metrópole won a gold award in the Operations categoryof the ICSC Latin Shopping Centre Awards.

l Parque D. Pedro Shopping won a silver award in the Operationscategory of the ICSC Latin Shopping Centre Awards.

certificationSl ISO 14001 and OHSAS 18001 certifications achieved for the

operational Safety, Health and Environment ManagementSystem of Boulevard Londrina Shopping.

key achievementSl Reduced electricity consumption per m2 of mall and toilet area by

2% in comparison with 2013.l Increased occupancy rate to 95% (up from 92% in 2013).l Introduced measures such as flow restrictors and waterless urinals

to reduce water consumption at six shopping centres. l Installed infrastructure to better measure and monitor individual

water uses at Boavista Shopping, Shopping Metrópole, Parque D.Pedro Shopping and Shopping Campo Limpo.

l Carried out a feasibility study of implementing compostingfacilities at Uberlândia Shopping.

l Installed LED lighting to reduce energy consumption at ManauaraShopping, Shopping Metrópole and Boavista Shopping.

l Invested and helped raise €420,825 for local communityinitiatives in 2014, supported 64 charitable organisations9 anddedicated 1,359 hours of staff time to community volunteering.


total: 403

total gla:466,848m2

(10 centres)



110.6m

develoPment PiPeline

total gla:11,700m2

(1 project)

€86.7m

8 This figure corresponds to the total rents invoiced (100%) to tenants of Sonae Sierra owned shopping centres in Brazil. It has been calculated based on account performancebetween 1 January 2014 and 31 December 2014. The conversion rate used to convert the Brazilian value in Reais to Euro (€) was 0.32063. The same exchange rate applies forother financial data for Brazil.

9 This figure corresponds to the sum of charitable organisations supported in Brazil, as reported by our shopping centres. In cases where two (or more) shopping centres havesupported the same charitable organisation, this has been counted twice (or more times), in order to reflect each individual shopping centre’s commitment.


Sonae Sierra in braZil (CONTINUED)

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energy and climate: GHG emissions of the owned portfolio and 0.015 0.018 0.021 Franca Shopping10,corporate offices (tCO2e/m2 GLA) � 0.008 tCO2e/m2 and Parque D. Pedro Shopping, 0.014 tCO2e/m2

energy and climate: Electricity efficiency (excluding tenants) of our 570 494 483 Franca Shopping10,owned portfolio (kWh/m2 mall and toilet area) � 81 kWh/m2 and Boavista Shopping, 367 kWh/m2

Water: Water efficiency (excluding tenants) of our owned portfolio 5.0 5.3 5.3� Shopping Campo Limpo,(litres/visit) 1.3 litres/visit

Waste: Total waste recycled as a proportion of waste produced 50% 55% 49% Shopping Metrópole, 70%(% by weight, across our owned portfolio)

tenants: Average occupancy index (% by GLA) 97.1% 92.1% 95.1% Shopping Campo Limpo, 99.9%

communities and visitors: Investments in sustainability initiatives 456,973 391,129 420,825 Parque D. Pedroand other community contributions (€) Shopping, €143,217


Safety and health: Number of hours of SPO performed 4,508 4,598 4,238 Manauara Shopping, 1,028 hours


8,974 tCO2e


118,918 tCO2e

total WaSte Production14total Water WithdraWal13 average tenantSatiSfaction index on aScale of 1 (‘not SatiSfied’)to 6 (‘very SatiSfied’)


491,643GJtraining Per emPloyee

55.4Average hours

10 Whilst Franca Shopping achieved the best performance it is not considered comparable with other shopping centres since it is partly open air. For this reason, we have alsohighlighted the performance of Parque D. Pedro Shopping (GHG emissions) and Boavista Shopping (electricity efficiency).

11 Please refer to our Economic, Environmental and Social Report 2014 for a detailed breakdown of the sources of GHG emissions included in our carbon footprint (scopes 1, 2 and 3).12 Our total energy consumption (GRI G4 – EN3) corresponds to our total consumption of fuels, electricity, and chilled/high temperature water (when applicable) at our owned

shopping centres in Brazil as well as the São Paulo office.13 Includes water reallocated to tenants.14 Includes all owned shopping centres in Brazil and the São Paulo office.

further references:


further references:


Sonae Sierra engaged with staff and shopping centre users atShopping Metrópole to change attitudes and behaviour towardsrecycling. Initiatives such as tenant training and a re-modelled wastearea helped to increase recycling rates by more than 200% since 2011,saving €34,000.

At Shopping Plaza Sul in São Paulo, Brazil, we introduced a closedloop water recycling strategy, reusing 57% of wastewater generatedon site and saving R$28,000 (€9,000) per month. Our actions havehelped to ease pressure on public water resources in a notoriouslywater-stressed region.

14,590 tonnes765,808 m3 4.4

SuStainability caSe StudieS



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Sonae Sierra in germany

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1: Alexa

2: Hofgarten Solingen

3: Loop5

New Projects:

4: Neue Mitte Garbsen

On the 31 December 2014 we owned three shopping centres inGermany: Hoftgarten Solingen in Solingen, Alexa in Berlin, andLoop5 in Weiterstadt.

2014 saw improvement in a number of operational indicators.Footfall across our German assets increased 1.3% and ouroccupancy rate was up two percentage points to 97%. This mirroredthe positive macro-economic environment with GDP growing 1.3%,which was accompanied by a moderate increase in commercial realestate investment and private consumption. Despite this, ourtenant sales were down 3.5% on a like-for-like basis mainly due torefurbishment activities at Loop5 where we are reorganising theanchor tenant mix to accommodate the arrival of a Primark storewhich will open in the summer of 2015. We expect this new additionto have a positive effect on footfall and tenant sales in line with ourexperience in other shopping centres. The refurbishment alsoimpacted on rental income which declined 1.5% compared to 2013.

During 2014 we sold a plot of land adjacent to the Alexa shoppingcentre site at a higher price than anticipated, which contributedmaterially towards our capital recycling strategy. We are alsodelighted to have agreed a property management and leasingcontract for three shopping centres in Hamburg for UnionInvestment with a combined GLA of 106,000m2.


total: 60

total gla:137,473m2

(3 centres)



36.5m


€8.3m

total gla:37,300m2

(1 project)

€44.1m

acknoWledgementSl Alexa shopping centre received an honourable mention in the

Established Shopping Centre category of the ICSC Europe awards.

certificationSl Hoftgarten Solingen (development project) achieved the highest

DGNB rating of Gold.

key achievementSl Reduced water consumption per visit by 28% in comparison

with 2013. l Installed LED lighting throughout Loop5 to reduce electricity

consumption in common areas. l Performed occupational noise study at Hoftgarten Solingen to

ensure our visitors, tenants, staff and suppliers are not exposedto dangerous levels of noise.

l Invested and helped raise €46,101 for local community initiativesin 2014, supported 10 charitable organisations16 and dedicated 120 hours of staff time to community volunteering

15 This figure corresponds to the total rents invoiced (100%) to tenants of Sonae Sierra owned shopping centres in Germany. It has been calculated based on accountperformance between 1 January 2014 and 31 December 2014.

16 This figure corresponds to the sum of charitable organisations supported in Germany, as reported by our shopping centres. In cases where two (or more) shopping centreshave supported the same charitable organisation, this has been counted twice (or more times), in order to reflect each individual shopping centre’s commitment.


Sonae Sierra in germany (CONTINUED)

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energy and climate: GHG emissions of the owned portfolio and 0.007 0.009 0.021 Alexa,corporate offices (tCO2e/m2 GLA) � 0.006 tCO2e/m2

energy and climate: Electricity efficiency (excluding tenants) of our 545 556 581 Loop5,owned portfolio (kWh/m2 mall and toilet area) � 494 kWh/m2

Water: Water efficiency (excluding tenants) of our owned portfolio 3.2 4.0 2.9� Hoftgarten Solingen17,(litres/visit) 0.9 litres/visit and Alexa 2.5 litres/visit

Waste: Total waste recycled as a proportion of waste produced 70% 67% 67%� Loop5, 79%(% by weight, across our owned portfolio)

tenants: Average occupancy index (% by GLA) 98.5% 94.5% 96.8% Alexa, 98.7%

communities and visitors: Investments in sustainability initiatives 65,375 54,115 46,101 Loop5, €37,439and other community contributions (€)


Safety and health: Number of hours of SPO performed 339 370 284 Loop5, 83 hours


2,775 tCO2e


45,407 tCO2e

total WaSte Production21total Water WithdraWal20 average tenantSatiSfaction index on aScale of 1 (‘not SatiSfied’)to 6 (‘very SatiSfied’)


90,147GJ


13.8Average hours

17 While Hoftgarten Solingen achieved the best performance, it is not considered comparable to other shopping centres as the toilets are managed by a third party. For thisreason we have also highlight the performance of Alexa.

18 Please refer to our Economic, Environmental and Social Report 2014 for a detailed breakdown of the sources of GHG emissions included in our carbon footprint (scopes 1, 2 and 3).19 Our total energy consumption (GRI G4 – EN3) corresponds to our total consumption of fuels, electricity, and chilled/high temperature water (when applicable) across our owed

shopping centres in Germany as well as the Düsseldorf office.20 Includes water reallocated to tenants.21 Includes all owned shopping centres in Germany.


119,245 m3 2,101 tonnes 4.1


Sonae Sierra in greece

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Sonae Sierra entered the Greek market in 1999. In 2005 weinaugurated our first Greek shopping centre, MediterraneanCosmos, located in Thessaloniki. In 2008 we completed our secondshopping centre, Pantheon Plaza in Larissa, adding a further21,058m2 of GLA to our Greek portfolio. In 2010 we successfully soldour interest in Mediterranean Cosmos as part of our capital recyclingstrategy, meaning Pantheon Plaza is now the our single investmentin Greece.

During 2014, the ongoing impact of government austerity measuresfollowing the sovereign debt crisis meant that Greece continued topresent a tough operating environment. The Greek economy stillhas many challenges and with unemployment remaining high weare yet to see spending power return to the consumer. In thiscontext, our tenants’ sales remained weak and we do not yet seesigns for optimism in this particularly distressed market. Ourobjective is therefore to realise value in an orderly way.

22 This figure corresponds to the total rents invoiced (100%) to tenants of the Sonae Sierra owned shopping centre in Greece. It has been calculated based on accountperformance between 1 January 2014 and 31 December 2014.


with 2013.l Reduced electricity consumption per m2 of mall and toilet area by

11% in comparison with 2013.l Reduced water consumption per visit by 3% in comparison

with 2013.l Increased recycling rate by 2% compared with 2013 and 2012. l Maintained our average tenant satisfaction rating of 4.6 out of 6.l Supported 5 charitable organisations and dedicated 39 hours of

staff time to community volunteering.

direct emPloyeeS ShoPPing centre oWned

total: 7

total gla:21,058m2

(1 centre)

viSitS toShoPPing centre

rentS received22

1.4m

oPerational coStS

€347,127

€924,866

1: Pantheon Plaza


Sonae Sierra in greece (CONTINUED)

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s

Performance 2012 2013 2014 trend 2013-14

energy and climate: GHG emissions of the owned portfolio and 0.186 0.113 0.105 corporate offices (tCO2e/m2 GLA) �

energy and climate: Electricity efficiency (excluding tenants) of our 316 180 161 owned portfolio (kWh/m2 mall and toilet area) �

Water: Water efficiency (excluding tenants) of our owned portfolio 3.3 3.0 2.9� (litres/visit)

Waste: Total waste recycled as a proportion of waste produced 50% 50% 51% (% by weight, across our owned portfolio)

tenants: Average occupancy index (% by GLA) 63.5% 60.8% 49.6%

communities and visitors: Investments in sustainability initiatives 39,200 – 142 and other community contributions (€)

employees: Investment in staff training and development (€ per capita) 880 693 321

Safety and health: Number of hours of SPO performed 74 34 24


2,182 tCO2e


6,189 tCO2e

total WaSteProduction25

average tenantSatiSfaction index on aScale of 1 (‘not SatiSfied’)to 6 (‘very SatiSfied’)


26,069GJ


8.5Average hours

23 Please refer to our Economic, Environmental and Social Report 2014 for a detailed breakdown of the sources of GHG emissions included in our carbon footprint (scopes 1, 2 and 3).24 Our total energy consumption (GRI G4 – EN3) corresponds to our total consumption of electricity at Pantheon Plaza. 25 Includes Pantheon Plaza only.


4.6141 tonnes

12

3


Sonae Sierra in italy

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On 31 December 2014 we owned three shopping centres in Italy: Freccia Rossa in Brescia, Gli Orsi in Biella and Le Terrazze in La Spezia.

Our performance in 2014 was extremely positive with significantlike-for-like growth in tenant sales of 4.4%, despite a slight decreasein GDP and only a small increase in private consumption. Footfallwas also 3.2% higher than it was in 2013 and our occupancy rateincreased by three percentage points to 99%. Rent collectionsimproved, but overall rental income fell due to some renewals atFreccia Rossa where we had to make some rent adjustments. In linewith our capital light approach, Sonae Sierra and ING Real Estatesold 90% of their stake in Le Terrazze, to Union Investment, withSonae Sierra maintaining ownership of the remaining 10% and theshopping centre’s management for ten years. The partial sale ofthis strong performing asset highlights our objective to maintain afoothold in dominant properties, whilst releasing capital to exploitacquisition, new development and/or redevelopment opportunitiesthat offer potential to extract further value. During the year we alsoexpanded our services business in Italy by agreeing four newmanagement and/or leasing contracts at prime assets in keylocations across the country.


total: 39

total gla:109,040m2

(3 centres)



21.7m

oPerational coStS

€4.6m

€23.5m

aWardSl Le Terrazze was awarded first prize in the Public Relations

category of the CNCC Italy Awards 2014.

certificationSl Achieved ISO 14001 and OHSAS 18001 certification for the

operational Safety, Health and Environment ManagementSystem of Freccia Rossa.

26 This figure corresponds to the total rents invoiced (100%) to tenants of Sonae Sierra owned shopping centres in Italy. It has been calculated based on account performancebetween 1 January 2014 and 31 December 2014.

27 This figure corresponds to the sum of charitable organisations supported in Italy, as reported by our shopping centres. In cases where two (or more) shopping centres havesupported the same charitable organisation, this has been counted twice (or more times), in order to reflect each individual shopping centre’s commitment.


with 2013.l Reduced electricity consumption per m2 of mall and toilet area

by 12% in comparison with 2013.l Reduced water consumption per visit to our shopping centres

by 26% in comparison with 2013.l Installed a rainwater harvesting system at Le Terrazze.l Invested and helped raise €74,238 for local community initiatives

in 2014, supported 106 charitable organisations27 and dedicated200 hours of staff time to community volunteering.

1: Freccia Rossa

2: Gli Orsi

3: Le Terrazze


Sonae Sierra in italy (CONTINUED)

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energy and climate: GHG emissions of the owned portfolio and 0.039 0.041 0.025 Gli Orsicorporate offices (tCO2e/m2 GLA) � 0.012 tCO2e/m2

energy and climate: Electricity efficiency (excluding tenants) of our 535 475 419 Le Terrazze,owned portfolio (kWh/m2 mall and toilet area) � 341 kWh/m2

Water: Water efficiency (excluding tenants) of our owned portfolio 5.4 5.4 4 Le Terrazze,(litres/visit) 3.3 litres/visit

Waste: Total waste recycled as a proportion of waste produced 63% 62% 62%� Gli Orsi 76%(% by weight, across our owned portfolio)

tenants: Average occupancy index (% by GLA) 96.7% 96.1% 99.4% Le Terrazze, 99.7%

communities and visitors: Investments in sustainability initiatives 165,502 141,240 74,238 Le Terrazze, €33,240and other community contributions (€)28

employees: Investment in staff training and development (€ per capita) 1,087 492 471 –

Safety and health: Number of hours of SPO performed 302 367 281 Le Terrazze, 107 hours


2,713 tCO2e


38,815 tCO2e


total Water WithdraWal31 average tenantSatiSfaction index on aScale of 1 (‘not SatiSfied’)to 6 (‘very SatiSfied’)


56,441GJtraining Per emPloyee

16.7Average hours

28 Includes donations collected from shopping centre visitors.29 Please refer to our Economic, Environmental and Social Report 2014 for a detailed breakdown of the sources of GHG emissions included in our carbon footprint (scopes 1, 2 and 3).30 Our total energy consumption (GRI G4 – EN3) corresponds to our total consumption of fuels, electricity, and chilled/high temperature water (when applicable) across all our

owned shopping centres in Italy as well as the Milan office.31 Includes water reallocated to tenants.32 Includes all owned shopping centres in Italy.

1,948 tonnes129,892 m3 4.4

1 4

3

2

In 2007 we entered the Romanian market with the acquisition ofRiver Plaza Mall, located in the city of Ramnicu Valcea. In 2014, wecontinued to own and operate this asset, and proceeded with thedevelopment of ParkLake, an important new project in Bucharest.

In 2014 River Plaza Mall recorded positive year on year sales growthof 5.6% which was bolstered by improvements to the tenant mix.Occupancy was also up six percentage points to 81%. We have seensustained improvements in the Romanian economy with goodmarket fundamentals providing us with grounds for optimism goinginto 2015.

In January 2014 we commenced construction works and proceededwith the leasing of ParkLake, a 70,000m2 GLA shopping centre thatwe are building in partnership with Caelum Development inBucharest. By the end of 2014, 70% of the GLA had already been let or agreed upon. With its inauguration expected in 2016, this€180 million investment will offer around 200 shop units to aprimary catchment area of 500,000 people. Having incorporatedour Safety, Health and Environment Development Standards(SHEDS), the project is on track to achieve an environmentalperformance rating of ‘Very Good’ under the BREEAM scheme.


with 2013.l Reduced electricity consumption per m2 of mall and toilet area by

1% in comparison with 2013.l Reduced water consumption per visit by 16% in comparison

with 2013.l Increased recycling rate by 5% compared with 2013.l Invested and helped raise €30,193 for local community initiatives

in 2014, supported 5 charitable organisations and dedicated 126hours of staff time to community volunteering.

direct emPloyeeS ShoPPing centre oWned

total: 21

total gla:11,765m2

(1 centre)

viSitS toShoPPing centre

rent received33

3.4m


€1.5m

1 project underdevelopment with agla of 70,000m2

and 2 projects in thepipeline with a totalgla of 123,000m2

€1.3m


Sonae Sierra in romania

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1: River Plaza Mall

New projects:

2: Adora Mall

3: ParkLake

4: Ploiesti Shopping

33 This figure corresponds to the total rents invoiced (100%) to tenants of the Sonae Sierra owned shopping centre in Romania. It has been calculated based on accountperformance between 1 January 2014 and 31 December 2014. The conversion rate used to convert the Romanian value in Lei to Euro (€) was 0,22502. The same exchangerate applies for other financial data for Romania.


s

Sonae Sierra in romania (CONTINUED)



energy and climate: GHG emissions of the owned portfolio and 0.101 0.087 0.086 corporate offices (tCO2e/m2 GLA) �

energy and climate: Electricity efficiency (excluding tenants) of our 368 328 325 owned portfolio (kWh/m2 mall and toilet area) �

Water: Water efficiency (excluding tenants) of our owned portfolio 2.3 1.9 1.6 (litres/visit)

Waste: Total waste recycled as a proportion of waste produced 45% 38% 40%� (% by weight, across our owned portfolio)

tenants: Average occupancy index (% by GLA) 80.6% 75.3% 81%

communities and visitors: Investments in sustainability initiatives 2,749 601 30,193 and other community contributions (€)

employees: Investment in staff training and development (€ per capita) 90 13 19

Safety and health: Number of hours of SPO performed 231 187 167


979 tCO2e


8,800 tCO2e




17,430GJ


18.1Average hours

34 Please refer to our Economic, Environmental and Social Report 2014 for a detailed breakdown of the sources of GHG emissions included in our carbon footprint (scopes 1, 2 and 3).35 Our total energy consumption (GRI G4 – EN3) corresponds to our total consumption of fuels, electricity, and chilled/high temperature water (when applicable) at River Plaza

Mall as well as the Bucharest office. 36 Includes water reallocated to tenants.37 Includes River Plaza Mall only.

4.9234 tonnes11,632 m3


Sonae Sierra in SPain

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2

3

1

8

6 4 7

5

In 1999 we started the development of our first Spanish shoppingcentre, Plaza Mayor in Málaga. Since then we have consolidated ourpresence in this market and on 31 December 2014 we owned sevenshopping centres in the country.

Our overall performance in 2014 was much more positive thanprevious years with tenant sales staying more or less stablethroughout the year, and we maintained a 92% occupancy rateacross the portfolio. In the wider economy, GDP grew 1.2% andemployment increased on an annual basis for the first time in six years.We witnessed growing consumer confidence and stable consumerspending, but despite better growth figures unemployment remainshigh (at 24% to 25%) and deflation presents challenges to theeconomic recovery. Against this difficult economic back drop rentsdeclined at a slower rate than in the previous two years demonstratingthe strength in our portfolio. Footfall also increased by 0.9% comparedto 2013 and we are optimistic that prospects in Spain will improve in2015 with a return to positive growth in sales.

As Investor appetite returns to Spain we are seeing an increase intransactions and widespread yield compression for primary assets.In this context we continued our capital recycling strategy throughthe successful disposal of La Farga, a non-strategic asset in ourportfolio. In November we announced a new joint venturepartnership with McArthurGlen, Europe’s leading owner, developerand manager of designer outlets, to develop a 30,000m2 GLAdesigner outlet adjacent to Plaza Mayor. The €115 millioninvestment will be completed in two phases with phase one offering90 stores of international and local luxury and premium brands in avillage-style setting which is scheduled to be inaugurated in 2017.

To support entrepreneurship amongst local small retailers we haveopened our first Coop store in Spain at Max Centre. The store wasthe first of its kind outside of Portugal and signals an expansion ofthis strategy to our wider European portfolio.

certificationSl Achieved BREEAM In-Use Good for asset performance and

BREEAM In-Use Very Good for building management at GranCasaand Max Center.

38 This figure corresponds to the total rents invoiced (100%) to tenants of Sonae Sierra owned shopping centres in Spain. It has been calculated based on account performancebetween 1 January 2014 and 31 December 2014.

key achievementSl Reduced our GHG emissions per m2 of GLA by 71% in comparison

with 2013. l Reduced our energy consumption per m2 of mall and toilet area

by 2% in comparison with 2013.l Increased our shopping centres’ waste recycling rate by 4%

compared to 2013.l Opened the first Coop store in Spain at Max Centre.l Increased Investment in staff training and development per capita

by 76% to €1,325.direct emPloyeeS ShoPPing centreS oWned

total: 99

total gla:324,331m2

(7 centres)



61m


€7.9m

total gla:30,000m2

(1 project)

€44.9m

1: Dos Mares

2: GranCasa

3: Luz del Tajo

4: Max Center

5: Plaza Mayor

6: Valle Real

7: Zubiarte

New Projects:

8: Málaga Designer Outlet


Sonae Sierra in SPain (CONTINUED)

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SuStainability Performance indicatorS39


energy and climate: GHG emissions of the owned portfolio and 0.013 0.007 0.002 Max Center,corporate offices (tCO2e/m2 GLA) � 0.0006, tCO2e/m2

energy and climate: Electricity efficiency (excluding tenants) of our 282 289 282 Plaza Mayor40,owned portfolio (kWh/m2 mall and toilet area) � 86 kWh/m2 and Valle Real, 197 kWh/m2

Water: Water efficiency (excluding tenants) of our owned portfolio 2.4 2.3 2.3 Dos Mares(litres/visit) 1.2 litres/visit

Waste: Total waste recycled as a proportion of waste produced 47% 50% 52%� Plaza Mayor, 80% (% by weight, across our owned portfolio)

tenants: Average occupancy index (% by GLA) 93.7% 92.4% 92.3% Valle Real, 98.7%

communities and visitors: Investments in sustainability initiatives 249,117 179,259 143,508 GranCasa, €45,100and other community contributions (€)41

employees: Investment in staff training and development (€ per capita) 763 751 1,325 –

Safety and health: Number of hours of SPO performed 1,751 1,305 965 GranCasa, 150 hours


490 tCO2e


101,895 tCO2e




86,275GJ


53.1Average hours

39 La Farga was sold in November 2014, thus we have included its performance until that date for all indicators. For mainly environmental indicators (and related indicators thatuse the same basis, such as water efficiency and total water withdrawal) that are linked to our long-term objectives we have also estimated, when no real data was available,performance for November and December based on historical trends to provide full calendar year data.

40 Plaza Mayor is predominately outside and therefore comparing GHG emissions with other centres is not a fair measure of performance. We have therefore also included theperformance of Valle Real.

41 Includes donations collected from shopping centre visitors.42 Please refer to our Economic, Environmental and Social Report 2014 for a detailed breakdown of the sources of GHG emissions included in our carbon footprint (scopes 1, 2 and 3).43 Our total energy consumption (GRI G4 – EN3) corresponds to our total consumption of fuels, electricity, and chilled/high temperature water (when applicable) across all our

owned shopping centres as well as the Madrid office. 44 Includes water reallocated to tenants.45 Includes all owned shopping centres in Spain.

further references:


We introduced an innovative new financing mechanism across five shopping centres in Spain to encouragethe replacement of conventional fluorescent lighting in car parks with LEDs, leading to forecasted grosssavings of €3.5 million across their entire lifecycle.

5,090 tonnes258,403 m3 4.8

SuStainability caSe Study



officeS

III s

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Documents

PBC 2013 (prf1) - Sonae Sierra 2014.pdf · comPany Profile III s s Sonae Sierra is the international shopping centre specialist that is passionate about creating unique shopping experiences