by country 2015 - sonae sierra · strategy and performance in 2015, and demonstrates the alignment...

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creatinG SHareD Valuefor our buSineSS anD Society

2015

SuStainability Performanceby Country

http://www.sonaesierra.com

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sSONAE SIERRA 2015 Sustainability Performance by Country

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III

about tHiS rePort

this report provides a summary overview of Sonae Sierra’s performance in 2014 across sevendifferent countries where we own shopping centres: Portugal, brazil, Germany, Greece, italy,romania and Spain.

We have also published an integrated Economic, Environmental and Social Report (available onour website) which covers our overall performance and draws heavily on the InternationalIntegrated Reporting Council’s (IIRC) Integrated Reporting Framework, the Global ReportingInitiative (GRI) G4 Sustainability Reporting Guidelines and the Construction and Real EstateSector Disclosures (CRESD).

As such, it provides our stakeholders with a more robust and detailed account of our currentstrategy and performance in 2015, and demonstrates the alignment between our corebusiness and sustainability goals.

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

http://www.sonaesierra.com/publicdocs/reports2015/2015_EES_Report.pdf

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WHo We are

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sIII SONAE SIERRA 2015 Sustainability Performance by Country

Sonae Sierra is an international property company dedicated to serving theneeds of retail real estate investors. We develop and invest in sustainable retailassets and provide investment, development and property managementservices for clients in geographies as diverse as Europe, South America, North Africa and Asia, while creating shared value for our business and society.

Passionate about bringing innovation and excitement to the retail real estate

industry since 1989, Sonae Sierra has been interpreting trends and

spearheading a movement that has defined the shopping centres of the future.

We have built an indisputable track record and a unique understanding of the

business and markets we operate in, ensuring we deliver value to our clients

across the full property lifecycle.

norteShopping, Portugal

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comPany Profile

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Sonae Sierra is an international property company. Incorporated in Portugal in 1989, Sonae SGPS (Portugal) and Grosvenor Group Limited (United Kingdom) each control 50%of the Company.

We are an international property company dedicated toserving the needs of investors in retail real estate. Building onour reputation as a pioneer in the creation of themed shoppingcentres, Sonae Sierra remains a leader in the development andmanagement of exceptional retail concepts for clients.

Through our integrated strategy of capital light, capitalallocation and professional services, we identify marketopportunities, partner with real estate investors and deliverservices covering the full property lifecycle. This allows us toimplement our know-how and international experience todevelop innovative products that create value for our clientsand stakeholders.

our vision is to be the leading international shopping centrespecialist.

our mission is to provide ultimate shopping experiences tocustomers and create outstanding value to shareholders,investors, tenants, communities and staff, while contributingto sustainable development.

Our vision and mission are underpinned by a set of core valuesand principles regarding our business culture, responsibilitytowards our staff, the environment, local communities wherewe operate and independence from political power.

key factS

SonaeSierra

retail real estate Solutions from a to Z

Managementand Leasing

Investmentand Asset

ManagementDevelopment

45SHoPPinG centreS oWneDWitH an omV of €6 billion

80SHoPPinG centreS manaGeDanD/or leaSeD

1,872million m2

total oWneD Gla

11ProjectS unDerDeVeloPment, incluDinGfour for tHirD PartieS

374.6€ million

rentS receiVeD at oWneDSHoPPinG centreS

1,085Direct emPloyeeS

5,185 € million

tenant SaleS at manaGeDSHoPPinG centreS

433million

ViSitS maDe to manaGeDSHoPPinG centreS

aS of 31 December 2015

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SuStainability objectiVeS

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We have identified five long term priorities that will deliver shared value for our business, societyand the environment. Addressing such issues is intended to address the principle sustainabilityrisks facing our operations and safeguard our continued capacity to do business.

Safe PeoPle anD eco-efficiency

Making sure that the assets we manage 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 investors,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 across the five impact areasthat sit under the umbrella of safe people and eco-efficiency:

energy and climatel 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 of 400 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 shopping centres), by 2020.

l Ensure that all discharges to local water courses comply with Sonae Sierra’s wastewater quality standards and pollutant limits, by 2020.

Wastel Increase the proportion of total waste (by weight) that is recycled, recovered or reused and obtain a minimum recycling rate of 65%

across Sonae Sierra owned shopping centres, by 2020.

l Reduce the proportion of waste (by weight) that is sent to landfill below a maximum limit of 18% across Sonae Sierra owned shoppingcentres, by 2020.

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

l Maintain a high level of performance in terms of waste recycling in construction projects and aim to increase the proportion ofconstruction materials with recycled content.

Gli orsi, Italy Viacatarina, Portugal

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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 wellbeing 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.

Regarding our SHEMS we have also set a long term objective to obtain a building certification for all new shopping centres and certifythe SHEMS for all Sonae Sierra construction projects and owned assets that we have managed for two or more years in a maximumperiod of three years

reSource reSilience

We are investigating ways to future proof our assets by becoming energy independent, reusing water on our sites and exploiting thelatest innovations and technology in natural resource management to rethink processes. This will protect our assets against naturalresource shortages and cost increases, and reduce operating costs in the short to medium term through alternative energy and watermanagement strategies.

We have set the following long term objectives:

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

l Develop and implement a long term strategy to ensure a secure water supply at owned shopping centres, with a particular focus onlocations that are vulnerable to water shortages, by 2020.

l Develop partnerships with energy service companies to set up on-site renewable energy generation systems, with a particular focuson photovoltaic systems.

ProSPerouS retailerS

We are taking action to partner with current and potential tenants to make their businesses more resilient, in particular enabling small,local and sustainable businesses to thrive in circumstances in which they might not have done so otherwise. At the same time, thisapproach supports our business strategy by allowing us to promote new concepts that deliver unique experiences to customers.Consequently, we can sustain our income streams and maintain innovation at the heart of Sonae Sierra’s business values.

We have a target to continue to roll out Coop Stores aiming for nine vacant units in 2016 in Portugal, Brazil, Germany, Romania and Spain.

Hofgarten Solingen, Germany Grancasa, Spain

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SuStainability objectiVeS (CONTINUED)

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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.These efforts become all the more important as we consolidate our position as a client services business whose main competitiveadvantage lies in our people’s ability to provide successful solutions to the challenges posed by our clients.

We have set the following long term objectives:

l To partner with universities and either share our knowledge or create new knowledge with students (aiming to develop at least fivecase studies/thesis/research partnerships in 2016).

l To extend our knowledge to the employees of the organisations that we wish to maintain strong links with such as municipalities, fire brigades and local authorities (aiming to develop at least two initiatives that result in improved relations with stakeholders in 2016).

l To help qualify our tenants or potential tenants (both owners and employees) by strengthening their business skills and know-how(aiming to perform three tenant and supplier development projects in 2016).

SuStainable lifeStyleS

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

We have set a target to inform our visitors about sustainable lifestyle experiences, through the promotion of sustainable products andservices that support healthy, wellbeing and environmentally-conscious behaviour, or by informing consumers about events, activitiesor workshops with a focus on culture, health or the environment.

boulevard londrina Shopping, Brazil alexa, Germany

We are the market leader in Portugal, the country where we were incorporated in 1989 and where our headquarters are. As of 31 December 2015, we owned 21 shopping centres across the country.

2015 was a positive year for our Portuguese portfolio. Our managedshopping centres saw an increase in footfall and like-for-like retailsales grew by 3.5%, outperforming the Eurostat Retail Sales index.Rental income at owned shopping centres also increased by 3% andwe maintained a high occupancy rate of 97.6%.

Material yield compression increased the value of our assets during2015 and we saw increased interest from investors in the market.Under these favourable circumstances we successfully completed thesale of the Torre Ocidente office building on behalf of the consortiumformed by Sonae Sierra, Caixa Geral de Depósitos, Iberdrola and CBREGlobal Investors to a Singapore-based investment trust.

Following a €5 million investment, we concluded the refurbishmentof NorteShopping in Porto and announced a €57 million, 14,000m2

GLA expansion of the centre. We also proceeded with the €8 millionfull refurbishment of Centro Vasco da Gama in Lisbon, set forcompletion in 2016, and secured the licence for a small extensionof the centre. Elsewhere in Portugal we are planning furtherexpansions at GaiaShopping and Centro Colombo.

In order to maximise the shared value created from our operations,we are supporting entrepreneurs and small retailers while diversifyingour retail offer. As part of our Prosperous Retailers strategy welaunched a pilot competition in Portugal called ‘Rising Store’ whichaims to support entrepreneurs by helping them to set up their ownretail business. The competition received more than 100 entries and five winning applications were announced in February 2016.They will receive support with the development of their businessplan and be given rent free store or kiosk space for six months in one of 13 participating shopping centres. Moreover, there will be an opportunity to extend the contract for a further six months at a discounted rate. We also continued to expand our‘Coop Store’ initiative in Portugal, opening four new stores in 2015.

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Sonae Sierra in PortuGal

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18 15

14

209

13

22

87

5

19

6 23

10

12

161721

11 41

Azores Islands Madeira Island

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 Sonae Sierra was honoured with two awards at the 11th edition of

the Euromoney Real Estate Awards: Best Portuguese RetailDeveloper and Best Portuguese Developer Overall.

l NorteShopping was awarded the Best Buy Award Portugal in theBest in Quality-Price Relationship category.

certificationSl BREEAM In-Use “Very Good” for Building and Asset Management

at Centro Vasco da Gama.l OHSAS 18001 certification achieved for the operational Safety,

Health and Environment Management System at RioSul Shopping,AlbufeiraShopping and Parque Atlântico.

key acHieVementSl Reduced GHG emissions per m2 of GLA by 6% in comparison

with 2014.l Reduced electricity consumption per m2 of mall and toilet area by

4% in comparison with 2014.l Reduced water consumption per visit by 3% in comparison with 2014.l Increased recycling rate by 5% in comparison with 2014.l Invested and helped raise €285,634 for local community initiatives

in 2015, supported 2772 charitable organisations and dedicated968 hours of staff time to community volunteering.

l Increased investment in staff training and development (€ per capita) from €429 in 2014 to €497 in 2015.

l Launched the "Healthy Month" initiative to promote the healthand wellbeing of Sonae Sierra’s workforce.

l Launched ‘Rising Store’ to support entrepreneurs in Portugal. l Launched a new award to encourage service suppliers to ‘think

safety first’ and promote safety best practices.l Launched ‘Segurarte’, a competition that will use public art to

promote the safe use of escalators.

Direct emPloyeeS SHoPPinG centreS oWneD

ViSitS to all SHoPPinG centreS unDer manaGement

rentS receiVeD at oWneDSHoPPinG centreS1

oPerational coStS DeVeloPment PiPeline

total: 430

total Gla:810,799m2

(21 centres)

176.3m €182.9m

€72.8m

1 project underdevelopment with atotal Gla of 14,000m2

& 1 project in thepipeline with a totalGla of 24,000m2

1 This figure corresponds to the total rents invoiced (100%) to tenants of Sonae Sierra owned shopping centres in Portugal. It has been calculated based on accountperformance between 1 January 2015 and 31 December 2015.

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.

3 Includes donations collected from shopping centre visitors. 4 Please refer to our Economic, Environmental and Social Report 2015 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 owned

shopping centres in Portugal as well as the Lisbon and Maia office.6 Includes water reallocated to tenants.7 Includes all owned shopping centres in Portugal and the Lisbon and Maia offices.

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Sonae Sierra in PortuGal (CONTINUED)

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SuStainability Performance inDicatorS

341,102 tco2e520,868 Gj28average hours11,621 tco2e

total WaterWitHDraWal6

total WaSte ProDuction7 aVeraGe tenantSatiSfaction inDex on aScale of 1 (‘not SatiSfieD’)to 5 (‘Very SatiSfieD’)

total ScoPeS 1 anD2 GHG emiSSionS4

total enerGyconSumPtion5

traininG Per emPloyee total ScoPe 3 GHGemiSSionS4

733,517 m3 20,590 tonnes 4.7

Slippery floors constitute one of the most common root causes ofsafety incidents across our portfolio. When the main entrance toLeiriaShopping presented a particular problem, a slip risk study cutthe number of accidents to zero. Similar studies have been replicatedat 14 shopping centres with encouraging results in terms of accidentprevention and cost reduction.

We launched a new award in Portugal and Brazil to encourageservice suppliers to ‘think safety first’ and promote safety best practices. The results have exceeded our expectations: we achieved a participation rate of 60% in both countriesdemonstrating the commitment of our suppliers to improvingsafety and health issues.

further references:

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

further references:


Performance Best centre(s) 2013 2014 2015 trend 2014/15 in 2015

energy and climate: GHG emissions of owned portfolio and 0.023 0.017 0.016 Centro Colombo, corporate offices (tCO2e/m2 GLA) 0.001 tCO2e/m2

energy and climate: Electricity efficiency (excluding tenants) 479 451 431 C.C. Continente deof owned portfolio (kWh/m2 mall and toilet area) Portimão, 310 kWh/m2

Water: Water efficiency (excluding tenants) of owned portfolio 3.1 2.9 2.8 AlbufeiraShopping and(litres/visit) GuimarãeShopping, 1.4 litres/visit

Waste: Total waste recycled as a proportion of waste produced 63% 64% 67% 8ª Avenida, 85%(% by weight, across owned portfolio)

tenants: Average occupancy index 97.4% 97.7% 97.6% AlgarveShopping,(% by GLA, across owned portfolio) Centro Vasco da Gama, LeiriaShopping, Norte Shopping and SerraShopping, 100%

communities and Visitors: Investments in sustainability initiatives 349,488 262,671 285,634 NorteShopping, €25,783and other community contributions (€)3

employees: Investment in staff training and development (€ per capita) 700 429 497 –

Safety and Health: Number of hours of SPO performed 2,835 2,512 2,422 NorteShopping, 448 hours

http://www.sonaesierra.com/corporate/en-gb/sustainability/history/casestudies.aspx


As of 31 December 2015, Sonae Sierra Brasil owned ten shoppingcentres.

In 2015 our Brazilian portfolio performed well in the context ofdeteriorating economic conditions. We recorded an increase intenant sales of 2.2% (in Reais) at managed shopping centres andmaintained a high occupancy rate of 92.6% at our owned shoppingcentres. Nonetheless, against an economic backdrop of highinflation and GDP forecast to contract, our strategy is to focus onmaintaining high occupancy rates in our centres and increasingprofits through efficient asset management. Furthermore, weintend to build on our strong cash position through strategicdisposals and in April 2016 we completed the sale of BoavistaShopping in São Paulo.

Our current focus is on extracting further value from existing assetsas we have done at Alameda Parque D. Pedro Shopping inCampinas, São Paulo, where we inaugurated a €12.5 million (R$45.6 million) expansion of its dining area. We also completed our8,000m2, €7.8 million (R$28.3 million) expansion of UberlândiaShopping which houses two new fashion anchors, C&A andRiachuelo, a fitness centre and office space.

To support smaller retailers and diversify our own retail offering we opened our first Coop Store in Brazil at Shopping Metrópole. The new store provides a range of unique and affordable craftproducts provided by eight new tenants. Coop Stores support ourstrategy to maintain a high occupancy rate in a challengingeconomic environment, while also providing smaller retailers withaccess to discounted retail space and our extensive customer base.

Reducing the amount of energy used at our assets helps to reduceoperational costs and supports efficient asset management as well as reducing our impact on the environment. As part of ourcompany-wide energy efficiency initiative ‘Bright Project’, we haveidentified €1.17 million worth of savings in energy costs across ourBrazilian portfolio. Since beginning the initiative we have made atotal investment of €370,000 in energy efficiency measures whichwill deliver a yearly potential saving of €547,000.

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Sonae Sierra in braZil

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4

10

597 81

3

2

61: Boavista Shopping

2: Boulevard Londrina Shopping

3: Franca Shopping

4: Manauara Shopping

5: Parque D. Pedro Shopping

6: Passeio das Águas Shopping

7: Shopping Campo Limpo

8: Shopping Metrópole

9: Shopping Plaza Sul

10: Uberlândia Shopping

New Projects

3: Franca Shopping – Expansion

aWarDS l Uberlândia Shopping and Passeio das Águas Shopping received

an award in the Outstanding Marketing category and Design andArchitecture category respectively of the LIDE Awards (BrazilianShopping Centres Forum).

l Sonae Sierra won Best Retail Developer for Latin America in theM&A Today Global Awards 2015.


with 2014.

l Reduced electricity consumption per m2 of mall and toilet area by8% in comparison with 2014.

l Reduced water consumption per visit by 8% in comparison with 2014.

l Increased recycling rate by 14% compared with 2014.

l Invested and helped raise €190,112 for local community initiativesin 2015, supported 289 charitable organisations and dedicated 705 hours of staff time to community volunteering.


l Opened the first Coop Store in Brazil at Shopping Metrópole.

l Launched a new award to encourage service suppliers to ‘thinksafety first’ and promote safety best practices.

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 2015 and 31 December 2015. The conversion rate used to convert the Brazilian value in Reais to Euro (€) was 0.27451. 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.




total: 380total Gla:477,457m2

(10 centres)

106.6m €78.5m

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Sonae Sierra in braZil (CONTINUED)

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energy and climate: GHG emissions of owned portfolio and 0.018 0.021 0.017 Franca Shopping10,corporate offices (tCO2e/m2 GLA) 0.006 tCO2e/m2 and Parque D. Pedro Shopping, 0.012 tCO2e/m2

energy and climate: Electricity efficiency (excluding tenants) 494 483 444 Franca Shopping10,of owned portfolio (kWh/m2 mall and toilet area) 71 kWh/m2 and Boulevard Londrina Shopping, 333 kWh/m2

Water: Water efficiency (excluding tenants) of owned portfolio 5.3 5.3 4.9 Shopping Campo Limpo,(litres/visit) 1.3 litres/visit

Waste: Total waste recycled as a proportion of waste produced 55% 49% 56% Shopping Metrópole, 75%(% by weight, across our owned portfolio)

tenants: Average occupancy index (% by GLA, across owned portfolio) 92.1% 95.1% 92.6% Franca Shopping, 99%

communities and Visitors: Investments in sustainability initiatives 391,129 420,825 190,11212 Parque D. Pedro Shopping,and other community contributions (€)11 €95,790


Safety and Health: Number of hours of SPO performed 4,598 4,238 4,430 Manauara Shopping, 976 hours







808,092 m3 14,581 tonnes 4.6

Global water consumption, if left unchecked, will grow to 40% abovereliable supplies by 2030 which could leave water scare regions suchas the city of São Paulo with insufficient water for their population.At Shopping Plaza Sul in São Paulo our team reformed the centre’swater management and achieved monthly savings of R$28,000(€8,235) by reusing 50% of the wastewater generated on site tomake the centre more resilient to water shortages.

further references:


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 Boulevard Londrina Shopping (electricity efficiency).

11 Includes donations collected from shopping centre visitors.12 Decrease in investments in sustainability initiatives and other community contributions is explained in the main by the depreciation of the Brazilian Real. 13 Please refer to our Economic, Environmental and Social Report 2015 for a detailed breakdown of the sources of GHG emissions included in our carbon footprint (scopes 1, 2 and 3).14 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.15 Includes water reallocated to tenants.16 Includes all owned shopping centres in Brazil and the São Paulo office.

Shopping Metrópole in Brazil has established a weekly Food Fair,which invites local residents and workers to purchase, eat andsocialise around stalls of local and healthy produce in a safe andconvenient outdoor setting. The initiative is generatingcommercial benefits for the shopping centre while also supportinglocal economic development and fostering a healthy and moreenvironmentally sustainable consumer offer.

further references:




Sonae Sierra in Germany

As of 31 December 2015 we owned three shopping centres inGermany: Hoftgarten Solingen in Solingen, Alexa in Berlin, andLoop5 in Weiterstadt.

The German market remained stable throughout 2015 with footfallacross our managed portfolio up 1.5% on a like-for-like basis. The operational performance of Loop5 was affected by on-goingwork to accommodate new anchor Primark and Alexa in Berlin wasaffected by new competition in the city resulting in a slight fall inlike-for-like sales (0.7%). Despite this, occupancy remained strongat 95.1% and Alexa performed better than we expected maintaininga stable yield in the context of yield expansion across Germany.

In 2015 we acquired a construction plot, in Nuremberg for our firstmixed-use development in Germany, demonstrating a diversificationof our development strategy to exploit lenders’ and planningauthorities’ preference for mixed-use projects. The redevelopmentwill encompass an 18,000m2 shopping centre, which we intend toretain ownership and management, as well as residential units andoffice space. In 2016 we will proceed in selecting partners to deliverthe scheme and secure permits and licenses.

In January 2016 we completed the sale of our majority stake inLoop5 to Deutsche Asset Management. We will maintain a minoritystake in this asset as well as property management and leasingservices, exemplifying our capital light approach. We will considerfurther retail acquisitions of flagship assets in prime locations inGermany in 2016 and beyond.

Efficient asset management remains a core part of our sustainabilitystrategy and in 2015 we reduced our operational energy consumption(kWh/m2 mall and toilet area) and greenhouse gas emissions(tCO2e/m2 GLA) by 8% and 19% respectively. Our energy efficiencyinitiative ‘Bright Project’ identified a potential saving of €352,000.Since beginning the initiative we have made a total investment of€16,000 which will deliver a yearly potential saving of €180,000.

1

3

2

4

1: Alexa

2: Hofgarten Solingen

3: Loop5

New Projects

4: Nuremberg

certificationSl Achieved ISO14001 and OHSAS 18001 certification for the

operational Safety, Health and Environment ManagementSystem of Hoftgarten Solingen.


with 2014.

l Reduced electricity consumption per m2 of mall and toilet area by8% in comparison with 2014.


l Increased the number of hours of Safety, Health and EnvironmentPreventive Observation (SPO) by 10% in comparison with 2014.

l Implemented safety and health awareness/engagementmarketing actions related to the most common types of incidents with visitors.





total: 66

total Gla:138,056m2

(3 centres)

53.6m €41.9m

€7.2m

total Gla:18,000m2

(1 project)

17 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 2015 and 31 December 2015.

.11 s


.12 s


Sonae Sierra in Germany (CONTINUED)



energy and climate: GHG emissions of owned portfolio and 0.009 0.021 0.017 Alexa, 0.005 tCO2e/m2

corporate offices (tCO2e/m2 GLA)

energy and climate: Electricity efficiency (excluding tenants) 556 581 536 Loop5, 499 kWh/m2

of owned portfolio (kWh/m2 mall and toilet area)

Water: Water efficiency (excluding tenants) of owned portfolio 4.0 2.9 3.1 Hoftgarten Solingen18,(litres/visit) 0.9 litres/visit and Alexa, 2.8 litres/visit

Waste: Total waste recycled as a proportion of waste produced 67% 67% 67% Loop5, 72.6%(% by weight, across owned portfolio)

tenants: Average occupancy index (% by GLA, across owned portfolio) 94.5% 96.8% 95.1% Alexa, 99%

communities and Visitors: Investments in sustainability initiatives 54,115 46,101 35,371 Loop5, €26,525and other community contributions (€)19


Safety and Health: Number of hours of SPO performed 370 284 311 Alexa, 96 hours



total WaSteProDuction23

aVeraGe tenantSatiSfaction inDex on aScale of 1 (‘not SatiSfieD’)to 5 (‘Very SatiSfieD’)




125,828 m3 2,080 tonnes 4.3

18 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.

19 Includes donations collected from shopping centre visitors.20 Please refer to our Economic, Environmental and Social Report 2015 for a detailed breakdown of the sources of GHG emissions included in our carbon footprint (scopes 1, 2 and 3).21 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.22 Includes water reallocated to tenants.23 Includes all owned shopping centres in Germany.

Sonae Sierra in Greece

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 sold our interest in Mediterranean Cosmos as part of our capital light strategy, meaning Pantheon Plaza is our single investment in Greece.

The Greek economy still has many challenges and withunemployment remaining high we are yet to see spending powerreturn to the consumer. In this context, our tenants’ sales remainedweak and we do not yet see signs for optimism in this particularlydistressed market. Our objective is therefore to realise value in anorderly way.

1

1: Pantheon Plaza


with 2014.

l Reduced total waste production by 26% in comparison with 2014.

l Supported three charitable organisations and dedicated 29 hoursof staff time to community volunteering.

Direct emPloyeeS SHoPPinG centre oWneD

ViSitS to our SHoPPinG centre

rentS receiVeD24

oPerational coStS

total: 6

total Gla:21,058m2

(1 centre)

1.2m €828,000

€324,800

24 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 2015 and 31 December 2015.

.13 s


.14 s


Sonae Sierra in Greece (CONTINUED)


Performance 2013 2014 2015 trend 2014/15

energy and climate: GHG emissions of owned portfolio and corporate offices (tCO2e/m2 GLA) 0.113 0.105 0.102

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

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

Waste: Total waste recycled as a proportion of waste produced (% by weight, across owned portfolio) 50% 51% 46%

tenants: Average occupancy index (% by GLA, across owned portfolio) 60.8% 49.6% 45.9%

communities and Visitors: Investments in sustainability initiatives and other community – 142 – contributions (€)25

employees: Investment in staff training and development (€ per capita) 693 321 252

Safety and Health: Number of hours of SPO performed 34 24 6






112 tonnes

25 Includes donations collected from shopping centre visitors.26 Please refer to our Economic, Environmental and Social Report 2015 for a detailed breakdown of the sources of GHG emissions included in our carbon footprint (scopes 1, 2 and 3).27 Our total energy consumption (GRI G4 – EN3) corresponds to our total consumption of electricity at Pantheon Plaza. 28 Includes Pantheon Plaza only.

.15 s


sOnae sierra in itaLy

As of 31 December 2015 we owned three shopping centres in Italy:Freccia Rossa in Brescia, Gli Orsi in Biella and Le Terrazze in La Spezia with a gross lettable area of 109,068m2.

In 2015 our Italian managed portfolio benefited from positive footfallfigures and a 5.3% increase in like-for-like tenant sales. Occupancyrates at our owned shopping centres increased for a thirdconsecutive year to 99.6% and like-for-like rental income increasedby 2.6%. Furthermore, favourable market conditions increasedasset values across the country.

In November 2015 we announced an agreement with Generali RealEstate for the development, property management and leasing ofthe CityLife Shopping District in Milan. The 366,000m2 mixed-usedevelopment will be the largest new shopping district in Italycreating 100 units within 32,000m2 of GLA, as well as residentialunits, offices and green spaces. Sonae Sierra will provide allnecessary professional services during the development andconstruction phases of the project, as well as asset and propertymanagement after the opening of the shopping district.

We continue to focus on improving the energy and water efficiencyof our assets in line with our long term focus on safe people and eco-efficiency. In 2015 we implemented 56% of therecommendations identified as part of our ‘Bright Project’ energyefficiency initiative, and 77% of the water efficiency measuresidentified through our ‘Dive Project’ across our Italian assets. The measures identified by these initiatives offer combined savingsof €862,000.

12

3

awards and acKnOwLedGementsl Freccia Rossa and Le Terrazze won a Certificate of Merit in the

Cause Related Marketing category of the CNCC Italy Awards 2015.

direct empLOyees shOppinG centres Owned

visits tO aLL shOppinG centres under manaGement

rents received at OwnedshOppinG centres29

OperatiOnaL cOsts

total: 40

total GLa:109,068m2

(3 centres)

21.6m €24.1m

€4.8m

29 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 2015 and 31 December 2015.

30 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.

1: Freccia Rossa

2: Gli Orsi

3: Le Terrazze

Key achievementsl Reduced GHG emissions per m2 of GLA by 8% in comparison

with 2014.


l Invested and helped raise €91,087 for local community initiativesin 2015, supported 7030 charitable organisations and dedicated 127 hours of staff time to community volunteering.

l Delivered training to service suppliers about the most common incidents and preventive measures at Gli Orsi and Le Terrazze.

l Launched the "Healthy Month" initiative to promote the healthand wellbeing of Sonae Sierra’s workforce.

.16 s


Sonae Sierra in italy (CONTINUED)



energy and climate: GHG emissions of owned portfolio and 0.041 0.025 0.023 Gli Orsi, 0.013 tCO2e/m2

corporate offices (tCO2e/m2 GLA)

energy and climate: Electricity efficiency (excluding tenants) 475 419 432 Le Terrazze, 318 kWh/m2

of owned portfolio (kWh/m2 mall and toilet area)

Water: Water efficiency (excluding tenants) of owned portfolio 5.4 4 4.7 Le Terrazze, 3.9 litres/visit (litres/visit)

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

tenants: Average occupancy index (% by GLA, across owned portfolio) 96.1% 99.4% 99.6% Le Terrazze, 100%

communities and Visitors: Investments in sustainability initiatives 141,240 74,238 91,087 Gli Orsi, €40,866and other community contributions (€)31


Safety and Health: Number of hours of SPO performed 367 281 217 Freccia Rossa, 66 hours







148,895 m3 1,854 tonnes 4.6

Applying the Bright modelling tool at Le Terrazze identified potentialsavings of €163,000 – equivalent to 27% of the shopping centre’selectricity bill – through a series of straightforward procedural changesand technical modifications.

further references:


31 Includes donations collected from shopping centre visitors.32 Please refer to our Economic, Environmental and Social Report 2015 for a detailed breakdown of the sources of GHG emissions included in our carbon footprint (scopes 1, 2 and 3).33 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.34 Includes water reallocated to tenants.35 Includes all owned shopping centres in Italy.


.17 s


Sonae Sierra in romania

In 2007 we entered the Romanian market with the acquisition ofRiver Plaza Mall, located in the city of Ramnicu Valcea. In 2015, wecontinued to own and operate this asset.

At River Plaza Mall, tenant sales increased by 21% on a like-for-likebasis in 2015. Positive sales figures were supported by changes tothe tenant mix which enabled us to introduce a small number ofadditional units. Consumer confidence increased throughout theyear and we saw a 9% increase in the number of visits to River PlazaMall compared to 2014. We also further increased our occupancyrate by 4% to 84%.

During 2015 the construction of our important new shopping centre ParkLake in Bucharest proceeded on schedule and budgetand we concluded the financing of the €180 million project with ourjoint venture partner Caelum Development. Located in Romania’scapital city, ParkLake will accommodate more than 200 shops, 23 restaurants, leisure areas and a 14-screen Cinema City within the 70,000m2 GLA mall. Throughout the year we continuedlease negotiations for Parklake, securing agreements withimportant national and international brands for 93% of the shoppingcentres GLA.

ParkLake has implemented a rigorous Safety, Health andEnvironment Management System certified – in 2015 – accordingto the OHSAS 18001 and ISO 14001 standards. Moreover, the finalproject is set to achieve a ‘Very Good’ rating in accordance with theinternational sustainable building standard BREEAM, the firstdevelopment of its kind in Romania to do so.

During 2015 we opened our first Coop Store in Romania which providesflexible and cost efficient retail space to small retailers. This initiativegives smaller retailers with the opportunity to reach the broadcustomer base that River Plaza Mall attracts, while also providing thecentre’s customers with new products.

1 4

3

2

aWarDS l River Plaza Mall and ParkLake honoured with a Forbes Green

Award in the Green Strategy in Developing and OperatingShopping Centres category.

certificationSl ISO14001 and OHSAS 18001 certifications achieved for

the Safety, Health and Environment Management System for the construction of ParkLake.

key acHieVementSl Reduced water consumption per visit by 13% in comparison

with 2014.



l Opened our first Coop Store.

Direct emPloyeeS SHoPPinG centre oWneD

ViSitS to our SHoPPinG centre

rentS receiVeD36


total: 23

total Gla:11,730m2

(1 centre)

3.7m €1.6m

€1.7m

36 This figure corresponds to the total rents invoiced (100%) to tenants of Sonae Sierra owned shopping centre in Romania. It has been calculated based on account performancebetween 1 January 2015 and 31 December 2015. The conversion rate used to convert the Romanian value in Lei to Euro (€) was 0.22498. The same exchange rate applies forother financial data for Romania.

1: River Plaza Mall

New Projects

2: Adora Mall

3: ParkLake

4: Ploiesti Shopping

1 project underdevelopment with aGla of 70,000m2

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

.18 s


Sonae Sierra in romania (CONTINUED)


Performance 2013 2014 2015 trend 2014/15

energy and climate: GHG emissions of owned portfolio and corporate offices (tCO2e/m2 GLA) 0.087 0.086 0.090

energy and climate: Electricity efficiency (excluding tenants) of owned portfolio 328 325 367 (kWh/m2 mall and toilet area)

Water: Water efficiency (excluding tenants) of owned portfolio (litres/visit) 1.9 1.6 1.4

Waste: Total waste recycled as a proportion of waste produced 38% 40% 51% (% by weight, across owned portfolio)

tenants: Average occupancy index (% by GLA, across owned portfolio) 75.3% 81% 84%

communities and Visitors: Investments in sustainability initiatives and other community 601 30,193 – contributions (€)37

employees: Investment in staff training and development (€ per capita) 13 19 42

Safety and Health: Number of hours of SPO performed 187 167 86







12,059 m3 270 tonnes 4.8

37 Includes donations collected from shopping centre visitors.38 Please refer to our Economic, Environmental and Social Report 2015 for a detailed breakdown of the sources of GHG emissions included in our carbon footprint (scopes 1, 2 and 3).39 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. 40 Includes water reallocated to tenants.41 Includes River Plaza Mall only.

.19 s


Sonae Sierra in SPain

In 1999 we started the development of our first Spanish shoppingcentre, Plaza Mayor in Malaga. Since then we have consolidated our presence in this market and as of 31 December 2015 we ownedsix shopping centres in Spain.

Performance across our Spanish portfolio was strong in 2015. Like-for-like tenant sales at our managed shopping centres grewby 5.7% (outperforming the Eurostat Retail Sales index) and like-for-like visits increased by 2.3%. While like-for-like rentalincome increased by 3.6%, we saw yields compress increasing assetvalues across our managed portfolio. In this context we completedthe disposal of Zubiarte in Bilbao to ActivumSG CapitalManagement in line with our capital light strategy.

During 2015 we proceeded with the licencing of our €115 million jointventure expansion of Plaza Mayor in partnership with McArthurGlen.The Plaza Mayor expansion in Málaga will provide an additional30,000m2 of retail space including 90 stores which will house luxuryand premium brands and will be the first designer outlet of its kindin southern Spain. In addition we have initiated refurbishments andexpansions at Valle Real, GranCasa and Max Center, and we havebegun negotiations to reduce our stake in non-core assets in Spainwhich we hope to finalise during 2016.

To ensure our assets continue to appeal to modern consumers welaunched ‘Fashion 4 Me’ in 2015, a digital stylist which providespersonalised advice; and we are piloting a loyalty app project at PlazaMayor which rewards customers with points and food vouchers.

We support entrepreneurs and small retailers in our shoppingcentres as part of our Prosperous Retailers strategy. During theyear we opened three new Coop Stores which offer smaller retailersthe opportunity to reach our broad customer base while alsodiversifying our own retail offering.

2

3

1

7

6 4

5

aWarDSl PromoFans® won a Bronze Award in the Internationalization

category of the Eficácia Awards.

certificationSl BREEAM In-Use “Very Good” for Building Management and

“Excellent” for Asset Management at Valle Real.

l OHSAS 18001 certification achieved for the operational Safety,Health and Environment Management System of Valle Real.

key acHieVementSl Reduced our electricity consumption per m2 of mall and toilet area

by 4% in comparison with 2014.


l Increased the average occupancy index by 3% compared with 2014.

l Invested and helped raise €149,323 for local communityinitiatives, supported 7943 charitable organisations and dedicated242 hours of staff time to community volunteering.





total: 94

total Gla:303,975m2

(6 centres)

57.1m €44.8m

€8m

total Gla:30,000m2

(1 project)

42 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 2015 and 31 December 2015.

43 This figure corresponds to the sum of charitable organisations supported in Spain, 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.

1: Dos Mares

2: GranCasa

3: Luz del Tajo

4: Max Center

5: Plaza Mayor

6: Valle Real

New Projects

7: Málaga Designer Outlet

.20 s


Sonae Sierra in SPain (CONTINUED)



energy and climate: GHG emissions of owned portfolio and 0.007 0.002 0.002 PlazaMayor44, corporate offices (tCO2e/m2 GLA) 0.00061 tCO2e/m2

and Max Center, 0.00063 tCO2e/m2

energy and climate: Electricity efficiency (excluding tenants) 289 282 270 Plaza Mayor44, 83 andof owned portfolio (kWh/m2 mall and toilet area) Valle Real, 173 kWh/m2

Water: Water efficiency (excluding tenants) of owned portfolio 2.3 2.3 2.4 Dos Mares, (litres/visit) 1.3 litres/visit

Waste: Total waste recycled as a proportion of waste produced 50% 52% 57% Plaza Mayor, 81% (% by weight, across owned portfolio)

tenants: Average occupancy index (% by GLA, across owned portfolio) 92% 92% 95% Valle Real, 100 %

communities and Visitors: Investments in sustainability initiatives 179,259 143,508 149,323 Plaza Mayor, €34,076and other community contributions (€)45

employees: Investment in staff training and development (€ per capita) 751 1,325 1,309 –

Safety and Health: Number of hours of SPO performed 1,305 965 701 GranCasa, 124 hours

121,054 tco2e80,125 Gj50average hours549 tco2e



aVeraGe tenantSatiSfaction inDex on aScale of 1 (‘not SatiSfieD’)to 5 (‘Very SatiSfieD’)




242,214 m3 5,103 tonnes 4.8

At zero investment cost, Max Center introduced a range ofmeasures to increase its recycling rate and generate sustainedreductions in waste management costs while providing a saferand cleaner work environment for management staff andsuppliers.

further references:


44 Plaza Mayor is predominately outside and therefore comparing GHG emissions and energy consumption with other centres is not a fair measure of performance. We havetherefore also included the performance of Max Center (GHG emissions) and Valle Real (electricity efficiency).

45 Includes donations collected from shopping centre visitors.46 Please refer to our Economic, Environmental and Social Report 2015 for a detailed breakdown of the sources of GHG emissions included in our carbon footprint (scopes 1, 2 and 3).47 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. 48 Includes water reallocated to tenants.49 Includes all owned shopping centres in Spain.


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