© 2014 REAG Real Estate Advisory GroupAll right Reserved

www.reag-aa.com

The present report covers some of the most important retail locations in terms of structure in Milan.

While all information is provided to the best of our knowledge, we assume no liability for the correctness of the information.

GLA Break Down (%)

Break Down by Opening Date

8% Scalo Milano

8% Cascina Merlata

44% Westfield Milan

8% Nuova Centrale Mag. Raccordati

17% Arese Shopping Center

6% Santa Giulia

6% City Life

3% Porta Nuova

Reag Retail Survey S A M P L E F i L E S

Anchors

Pipeline by Size

0-5,000

5,001-30,000

30,001-45,000

45,001-100,000

>100,000

(sqm)

Pipeline by Typology

Urban Shopping Mall

Medium Sized Shopping Mall

Regional Mall

innovative Mall

Factory Outlet Center

A new season lies ahead in the development of commercial space in the Milan metropolitan area. After

years in which it has come to a halt, now we record new GLA on pipeline, both in the urban context, as well as outside the core area.The outlook in Milan, as elsewhere in italy, is the polarization of new developments. Beside regional malls with a GLA of over 80,000 square meters, still rarely present in italy, neighborhood malls and retail schemes in downtown re-development areas, with a growing attention to entertainment and lifestyle.The new attractors are now being sought in the area of personal services: entertainment and leisure, fitness, food, wellness and health care. The key role of the large retail schemes market changed dramatically: nowadays the shopping centre is no longer just a place to shop but also a meeting point and a leisure centre. New retail schemes have to provide a pleasant environment, capable to attract a selective consumer, increasingly demanding and with a wide gamut of alternatives.As far as Milan retail market is concerned, the planned Arese Shopping Center and Westfield Milan will be large regional centers, built in the belt around the city center and they will offer an innovative layout, based on services and entertainment. The large redevelopment projects in the inner city are not only changing the skyline, but they are creating new commercial hotspots such as Square Gae Aulenti in Porta Nuova and the future large shopping area of the new district City Life, under construction on the site once occupied by Fiera MilanoOne of the most innovative initiatives will take form within the “ex Magazzini Raccordati” located below the beam of the tracks of the Central Station. These places, suitably redeveloped, will host, as well as a shopping center, also spaces for entertainment, culture, education, art, music, sports and wellness.Later this year the first phase of an innovative format Factory Outlet Center the “Scalo Milano”, which will be divided into thematic areas focusing on food, the Design and Fashion, will also be inaugurated near Milan.Between 2016-2018, however, the perspective changes, especially with the planned opening of two large Regional Malls (Westfield Milan and Arese Shop ping Center) and a Medium Sized Shopping Mall (Cascina Merlata) which make up 71% of the total GLA that will be delivered in the coming years.

Shopping mall in the pipeline in Milan

Gym and Wellness Village

Sport Arenas

Cultural/Educational Spaces

Art Galleries

Design Stores

Fashion Boutique

Food

Live Music/Concert Hall

Multiplex

Department Store

Entertainment Center

Supermarket Anchor

Hypermarket Anchor

GLA Break Down (%)

Break Down by Opening Date

8% Scalo Milano

8% Cascina Merlata

44% Westfield Milan

8% Nuova Centrale Mag. Raccordati

17% Arese Shopping Center

6% Santa Giulia

6% City Life

3% Porta Nuova

Reag Retail Survey S A M P L E F i L E S

Anchors

Pipeline by Size

0-5,000

5,001-30,000

30,001-45,000

45,001-100,000

>100,000

(sqm)

Pipeline by Typology

Urban Shopping Mall

Medium Sized Shopping Mall

Regional Mall

innovative Mall

Factory Outlet Center

A new season lies ahead in the development of commercial space in the Milan metropolitan area. After

years in which it has come to a halt, now we record new GLA on pipeline, both in the urban context, as well as outside the core area.The outlook in Milan, as elsewhere in italy, is the polarization of new developments. Beside regional malls with a GLA of over 80,000 square meters, still rarely present in italy, neighborhood malls and retail schemes in downtown re-development areas, with a growing attention to entertainment and lifestyle.The new attractors are now being sought in the area of personal services: entertainment and leisure, fitness, food, wellness and health care. The key role of the large retail schemes market changed dramatically: nowadays the shopping centre is no longer just a place to shop but also a meeting point and a leisure centre. New retail schemes have to provide a pleasant environment, capable to attract a selective consumer, increasingly demanding and with a wide gamut of alternatives.As far as Milan retail market is concerned, the planned Arese Shopping Center and Westfield Milan will be large regional centers, built in the belt around the city center and they will offer an innovative layout, based on services and entertainment. The large redevelopment projects in the inner city are not only changing the skyline, but they are creating new commercial hotspots such as Square Gae Aulenti in Porta Nuova and the future large shopping area of the new district City Life, under construction on the site once occupied by Fiera MilanoOne of the most innovative initiatives will take form within the “ex Magazzini Raccordati” located below the beam of the tracks of the Central Station. These places, suitably redeveloped, will host, as well as a shopping center, also spaces for entertainment, culture, education, art, music, sports and wellness.Later this year the first phase of an innovative format Factory Outlet Center the “Scalo Milano”, which will be divided into thematic areas focusing on food, the Design and Fashion, will also be inaugurated near Milan.Between 2016-2018, however, the perspective changes, especially with the planned opening of two large Regional Malls (Westfield Milan and Arese Shop ping Center) and a Medium Sized Shopping Mall (Cascina Merlata) which make up 71% of the total GLA that will be delivered in the coming years.

Shopping mall in the pipeline in Milan

Gym and Wellness Village

Sport Arenas

Cultural/Educational Spaces

Art Galleries

Design Stores

Fashion Boutique

Food

Live Music/Concert Hall

Multiplex

Department Store

Entertainment Center

Supermarket Anchor

Hypermarket Anchor

© 2014 REAG Real Estate Advisory GroupAll right Reserved

www.reag-aa.com

The present report covers some of the most important retail locations in terms of structure in Milan.

While all information is provided to the best of our knowledge, we assume no liability for the correctness of the information.