Royal-Hamilius Press Conference 30 January 2018 Page 1

Press kit 30 January 2018

Galeries Lafayette:

A great commercial flagship for Luxembourg

Contributors:

Mrs Lydie POLFER, Burgomaster of Luxembourg City

Mr Nicolas HOUZÉ, Managing Director of the Galeries Lafayette and of the BHV Marais

Mr Thierry BEHIELS, Chief Executive Officer, Codic International

Royal-Hamilius Press Conference 30 January 2018 Page 2

1) The Galeries Lafayette announce the opening of a flagship store in

Luxembourg

Committed to an ambitious international development strategy, the Galeries Lafayette

continue to expand with the opening of a proprietary store in Luxembourg.

Located at the heart of the Royal-Hamilius urban development project designed by Pritzker

Architecture Prize-winning architect Norman Foster and his firm Foster&Partners, this new

large Galeries Lafayette store of 9,000 m2 will open its doors at the end of 2019, in partnership

with CODIC, one of Europe's leading property developers.

The Galeries Lafayette will benefit from a central location over six floors, within the heart of a

complex featuring bold and innovative architecture, combining shops, services, offices and

housing. A terrace with panoramic views on the 6th floor will also make this site a must-see

destination within this new living space in the heart of Luxembourg.

The opening of this store, in a country that borders France, with a particularly dynamic

economy, is a first-rate opportunity for the Galeries Lafayette, who will be able to offer their

expertise in fashion and homeware, with both luxury and premium goods, local clientele with

strong purchasing power, and in a territory that each year welcomes more than 3.5 million

international visitors, predominantly through business travel.

With the backing of an international network of eight flagship stores and five projects currently

under development, the ambition of the Galeries Lafayette is to open in the region of twenty

stores in global capital cities in the next five years. The brand will open its first flagship in Doha

(Qatar) in the autumn of 2018 and Shanghai (China) at the end of 2018. Three other Galeries

Lafayette stores will be launched in Kuwait City (2019), on the west bank of Istanbul (2019) and

in Milan (2021).

Commenting on this announcement, Nicolas Houzé, Managing Director of the Galeries

Lafayette and BHV MARAIS states: "This new international launch demonstrates our ambition

to accelerate the reach of our Galeries Lafayette brand abroad, this time in a country bordering

France, where our expertise in Fashion is particularly appreciated by both local clients and

international visitors."

Lydie POLFER, Burgomaster of Luxembourg City: "We are pleased to welcome a brand as

prestigious and emblematic as the Galeries Lafayette to Luxembourg. As the Burgomaster of the

city, I am delighted at this news. For the Royal-Hamilius project and for business in general, the

Galeries Lafayette are a real bonus. I am sure that this will create real draw to the city that

numerous other businesses in the city centre will also benefit from. We hold brand

diversification and expansion of choice particularly close to our hearts: they are the motor that

drives an attractive and vivacious city for visitors and clients."

Royal-Hamilius Press Conference 30 January 2018 Page 3

Thierry Behiels, CEO of Codic International: "We are happy to have succeeded in bringing

together three great names that represent excellence in Luxembourg: the Galeries Lafayette,

Royal-Hamilius and Foster & Partners/Tetra Kayser & Associés. A great brand can only truly

shine in a building with high quality architecture, all ideally situated in a city centre location.

We managed to bring together this golden triangle in a remarkable building dedicated to this

great store, with a facade featuring several diamond shapes.

The Royal-Hamilius project provides an opportunity for brands that require large spaces to be

able to open in the city centre. Each floor will have a surface area of 1,600 m2 and will be open

to the outdoors thanks to large picture windows. This kind of space does not exist in the very

centre of Luxembourg, where the buildings are very fragmented. The existing buildings make it

impossible to welcome large department stores. Royal-Hamilius was therefore the only location

suitable for the Galeries Lafayette, with a surface area of 9,000 m². The building occupied by the

Galeries Lafayette is currently home to FNAC on the lower ground floor. Codic are currently

seeking a Sky Restaurant to complete the offer and to make this building a must-see destination

in Luxembourg.

Royal-Hamilius will bring complementary architecture and a new dynamic to rue Aldringen,

Grand-Rue and avenue Monterey. The new pedestrian access will facilitate the continuity of the

current commercial pathway. The new business quarter, offices and housing will be easily

accessible thanks to the commissioning of the tram in 2019 and the 630-space car park.

Without a doubt, Luxembourg has every asset required of one of the most attractive capitals in

Europe."

The Marketing Mix of the "Royal-Hamilius" project provides for a Department Store (GALERIES

LAFAYETTTE), a Convenience Store (DELHAIZE hypermarket) and a Big Store (FNAC), a space

dedicated to multimedia, leisure and literature.

Alongside these three great brands, there will also be boutiques and restaurants, marketing

activities for which will soon be launched.

Offices and housing will complete the full range of facilities.

The different roles of Royal-Hamilius

Royal-Hamilius Press Conference 30 January 2018 Page 4

Stunning perspective of the department store from the pedestrian walkway

2) GALERIES LAFAYETTE: a reference point for the art of French living

on an international scale

The leading French department store, and famous all over the world, for 120 years the Galeries

Lafayette have been the undisputed specialists of fashion and events trade, aiming to make

every visit a unique experience and to offer both French and international clients a selection of

constantly renewed brands, from accessible through to premium.

Featuring in fashion, beauty, watches and jewellery, accessories, home decor, food and dining,

the Galeries Lafayette shine thanks to their network of 61 stores in France and abroad -

including the famous flagship on Boulevard Haussmann in Paris, with its legendary Art Nouveau

cupola.

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The Galeries Lafayette in key figures:

1894: the Galeries Lafayette are founded by Théophile Bader

More than 120 years of trade and promotion of the art of French life

A 100% family owned business

14,000 employees

€3.8 billion retail sales

280 stores

1 million visitors per day

56 stores in France

5 international stores: Berlin, Dubai, Jakarta, Beijing, Istanbul

4.6 million individual visitors per month to galerieslafayette.com

A stakeholder committed to promoting the confluence of commerce and creation

The Galeries Lafayette are part of the Galeries Lafayette Group which includes the brands

BHV/Marais, La Redoute, Louis Pion, RQZ, Guérin, Bazarchic and InstantLuxe.

The four core values of the Group are:

Client passion

The courage to innovate with the ambition for daily reinvention

Collective commitment, drawing strength from collective efforts

A taste for excellence, cultivating the famous "Art of French living" and promoting it in

France and abroad

Conscious of the responsibilities connected with its status as a leader in business and fashion,

the Galeries Lafayette Group is committed to a global sustainable development strategy, with

the aim of becoming a global reference point for ethical and sustainable business in France. It is

a vision of sustainable, circular and humanist commerce, based on the support of all of its

stakeholders: clients, colleagues, brands, partners, and suppliers.

For further information about the Galeries Lafayette Group: www.groupegalerieslafayette.fr

The Galeries Lafayette offers Luxembourg the real art of French life.

Royal-Hamilius Press Conference 30 January 2018 Page 6

3) The expert opinion

Virginie Chambon, Head of Retail Leasing Luxembourg at Cushman & Wakefield and

Thierry Debourse, Head of Retail Belux at JLL, are delighted to have worked with Codic on the

arrival of this fabulous brand to the territory of the Grand Duchy. The Galeries Lafayette will be

located in the prestigious Royal-Hamilius, an urban development of businesses, services,

offices, and housing, under construction in the heart of the commercial centre of the Grand

Duchy. For both specialists, the impact on the retail market and the commercial attraction

throughout the territory of the Grand Duchy of Luxembourg will be unprecedented.

"The capital of the Grand Duchy was missing an iconic driving force, capable of creating a new

dynamic in the retail sector, to refresh the selection available and to adapt it to new consumer

expectations. We are delighted to have been able to attract a world renowned company such as

the Galeries Lafayette to Royal-Hamilius, which will be a real 'incubator' to bring new

international and high quality brands to Luxembourg," explain Thierry Debourse and

Virginie Chambon.

The commercial offer provided by the Royal-Hamilius has rapidly become an unmissable offer in

Benelux's commercial trade network. Its position is unique from every perspective. Its

geographical location is exceptional, from its accessibility and visibility at the entrance to the

main commercial zone in the Grand Duchy, comprising the Grand-Rue, rue Philippe II and the

adjoining streets. The city centre is the preferred location of international brands, particularly

high-end and luxury brands.

Thanks to Royal-Hamilius and the arrival of the Galeries Lafayette at its heart, international

brands will have a unique and qualitative opportunity to enter the saturated (in terms of

available leasable space) market in Luxembourg. For numerous prestigious brands, this

represents an opportunity to establish a presence in the Grand Duchy of Luxembourg, without

taking the "risk" of opening a branch.

Access to the Royal-Hamilius will be facilitated by underground parking and the new tram and

bus station located at the foot of the building. Footfall in the city centre, which currently stands

at around 35,000 individuals per day, will be increased by approximately 20%, to the benefit of

the Royal-Hamilius and the rest of the city centre, supporting its pulling power.

As another asset, the Galeries Lafayette and every other brand featured in the Royal-Hamilius,

are new venues on the market in Luxembourg. The same goes for FNAC, which will be opening

a new specifically designed concept for the city centres, and Delhaize, which will be developing

a Premium concept. Their arrival consolidates the quality and diversity of the commercial offer

on our market.

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The arrival of this world renowned department store, the Galeries Lafayette, and the plethora

of new brands they carry in their wake, will directly impact both the commercial catchment

area and the tourist area of Luxembourg City, which will be expanded to reach more than

675,000 people in a 30 minute radius, thus exceeding the national borders.

The brand image of Luxembourg City, and by extension that of the whole Grand Duchy, will

significantly benefit. The presence of these three new brands at the Royal-Hamilius will also

help to strengthen commercial expenditure of more than 300 million Euros per year,

approaching the region of 2.2 billion Euros.

The commercial activity and pull of the Galeries Lafayette will also quickly extend beyond our

borders, to seduce our French, German and Belgian neighbours, who will now benefit from

increased choice.

As the real driving force of a new dynamic in the commercial landscape of Luxembourg, the

Galeries Lafayette will allow Luxembourg to access the status of European capitals with their

own "Department Store". With the Galeries Lafayette, Luxembourg City will have the "Rolls

Royce" of department stores in this regard.

4) An update on the Royal-Hamilius site

Progression of the works

The five buildings of the Royal-Hamilius are gaining height. The elevation of the building that

will be home to the Galeries Lafayette and FNAC opening onto Grand Rue is approaching its 2nd

floor.

The Royal-Aldringen apartment block is reaching mid-height on the 4th floor and the office block

is progressing at the same pace, reaching its 2nd floor.

The future Place de la Poste is taking shape, which will be the junction between Boulevard

Royal and rue Aldringen. The square will be overlooked by residential buildings (Royal-Hamilius

and Royal-Monterey) which follows the path of the superstructure. Future residents can plan to

receive their keys in Autumn 2019.

In logical progression, the structural works of the car park and adjoining infrastructure (access

ramps to avenue Monterey, avenue Reuter and rue Aldringen) have made way for technical

work and interior finishings.

The facades will progressively start to cover the structural work of the super structures from

this summer, and will provide the volume and identity of the project while establishing its

various uses.

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Launch and marketing

First opening of the Royal-Hamilius: the car park. The car park will be open by the start of the

autumn term of the schools later this year, and will provide drivers with greater convenience.

We envisage that the Royal-Hamilius will open for trade towards the end of 2019. Place

Hamilius, the new access to the City combining soft mobility and public transport, as well as the

roof of the Sky Garden will be the new meeting points for the organisation of upcoming events.

Fifteen boutiques on place de la poste and rue Aldringen will open for trade mid-2018. The

consultation of candidate operators for the Sky Restaurant is ongoing and we plan to announce

the winner towards the end of 2018.

Launched towards the end of 2017, the sale of 73 homes was a real success and has delighted

both numerous families and investors. Buyers have highlighted the convenience of the

generous space, quality, made-to-measure materials and elevated location in the city centre,

with all its amenities, as key points of attraction.

Sky Restaurant Royal-Hamilius by night

Offices Housing

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Press contacts:

CODIC Luxembourg, Thierry Behiels, CEO,

T +352 26 10 25 38 / +32 2 663 20 52

t.behiels@codic.eu / www.royal-hamilius.com / www.codic.eu

Groupe Galeries Lafayette, Alexandra van Weddingen, Director of Corporate Communication

T +33 1 45 96 68 44

avanweddingen@galerieslafayette.com / www.galerieslafayette.com

"Royal-Hamilius" is a CODIC Group development.

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