© 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

1% Niguarda Shopping Gallery (extension)

10% Cascina Merlata

51% Westfiled Milan

20% Arese ShoppingCenter

7% Santa Giulia7%

City Life

4% Porta Nuova

Reag Retail SurveyS A M P L E F I L E S

Multiplex

Anchors

Department Store

Entertainment Center

Supermarket Anchor

Hypermarket Anchor

Pipeline by Size

0-5,000

5,001-30,000

30,001-45,000

45,001-100,000

GLA stock in the pipeline

>100,000

(sqm)

Pipeline by Typology

Urban Shopping Mall

Medium Sized Shopping Mall

Regional Mall

Innovative Mall

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, fi tness, 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 Westfi eld 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. The most innovative initiative is taking place inside the hospital Niguarda where the inner retail space will be extended, integrating services related to healthcare.

During the next two years it is not expected the opening of new retail space, but the development activity is limited only to the completion of current initiatives within the city.

Between 2016-2018, however, the perspective changes, especially with the planned opening of two large Regional Mall s (Westfi eld Milan and Arese Shop-ping Center), which make up 81% of the total GLA that will be delivered in the coming years.

Shopping mall in the pipeline in Milan

GLA Break Down (%)

Break Down by Opening Date

1% Niguarda Shopping Gallery (extension)

10% Cascina Merlata

51% Westfiled Milan

20% Arese ShoppingCenter

7% Santa Giulia7%

City Life

4% Porta Nuova

Reag Retail SurveyS A M P L E F I L E S

Multiplex

Anchors

Department Store

Entertainment Center

Supermarket Anchor

Hypermarket Anchor

Pipeline by Size

0-5,000

5,001-30,000

30,001-45,000

45,001-100,000

GLA stock in the pipeline

>100,000

(sqm)

Pipeline by Typology

Urban Shopping Mall

Medium Sized Shopping Mall

Regional Mall

Innovative Mall

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, fi tness, 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 Westfi eld 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. The most innovative initiative is taking place inside the hospital Niguarda where the inner retail space will be extended, integrating services related to healthcare.

During the next two years it is not expected the opening of new retail space, but the development activity is limited only to the completion of current initiatives within the city.

Between 2016-2018, however, the perspective changes, especially with the planned opening of two large Regional Mall s (Westfi eld Milan and Arese Shop-ping Center), which make up 81% of the total GLA that will be delivered in the coming years.

Shopping mall in the pipeline in Milan

© 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.