Page 30 - May2021

MARK FAITHFULL

Following

the Money

Mark Faithfull crunches the numbers as he looks at
analysis and expansion that reflects changing markets

dUbAI TImE OUT mARkET OpENINg NEw RAphA CLUbhOUSE LONdON RIdES ThE
bOOSTEd by vACCINATIONS CyCLINg bOOm
Time Out Market debuted its seventh global The premium cycling brand Rapha broke the mould when it opened its first Clubhouse in
location at Downtown Dubai’s Souk Al Bahar, Soho, London back in 2012 – at a time when there were just a handful of cycle shop cafes
next to Dubai Mall, in April, offering locals and in Britain. As London’s stores reopened on 12 April, it reopened its doors, after a complete
visitors views from its outdoor terrace over the refurbishment that aims to ride the extraordinary growth in cycling over the lockdown.
Burj Khalifa - the world’s tallest building - and Indeed, Rapha’s flagship destination has relaunched at almost twice the size, with a wider
Dubai Fountain. product range, personal shopping, upgraded fitting rooms and – most importantly - a large
The opening of the 43,000sq ft space heralds ‘experiential space’ to celebrate the culture of cycling, with a larger café area for its riding
early signs of a return to normality for Dubai - the community and a packed events and rides calendar, with rides every day.
Gulf region’s commercial and tourism hub and a The move in part reflects the fact that UK bike retailers and manufacturers are struggling
global travel centre - which has benefited from to keep up with unprecedented demand as the cycling boom rolls on, with sales of bicycles,
the blistering pace of its vaccination program, including accessories, services and components, up by 41 per cent in January, compared with
second only to Israel in doses administered per a year earlier, maintaining a similar rate of growth of 45 per cent across 2020 according to
hundred people. the Bicycle Association.
Time Out Market has also recently secured a
deal for a new venue in neighbouring emirate
Abu Dhabi, which is due to open in 2023. Yet
abandonment of plans for a Time Out Market
in home city London and the continuation of a
possible cash call underline how hard the media
group’s culinary destination arm has been hit.
The Time Out Market portfolio expanded
rapidly across North America in 2019 as Miami,
New York, Boston, Montréal and Chicago were
added to the original flagship in Lisbon, Portugal.
Since March 2020, those locations have been
closed for much of the time as cities locked down
and international tourism all but disappeared. As a
result, the opening of its Dubai outpost is crucial,
with further hopes that tourism will reenergize
the UAE.
Dubai has opened as part of a management AmERICAN dREAm OwNER wIShEd IT hAd bURNEd dOwN
agreement with Emaar Malls, and will be followed
towards the end of the year by Porto, Portugal Owners don’t typically tell a public audience that they wish their sparkling new $5bn
and Prague, Czech Republic, in 2023. Further shopping centre had burned to the ground. But then you’d need a heart of stone not to
expansion plans are expected, while Time Out empathise with the sentiment behind Kurt Hagen’s startling words.
said it is reviewing a potential equity raise to help American Dream owner Triple Five has put up nearly half the ongoing profits of two of
ensure it has “financial and operational flexibility” North America’s largest malls – Mall of America, Minneapolis and West Edmonton Mall,
after the group last year raised $65M through a Canada - in order to appease circling creditors for the scheme.
share placing and redeemed $33M of loan notes to In March last year, five months after it had partially opened to great fanfare and just three
shore up its balance sheet. days before it planned to debut its DreamWorks Water Park, American Dream was forced
to shutter its doors as US Covid-19 cases surged. It reopened in October, with eight of
its attractions and around 130 stores. More openings should follow, including the Sea Life
Aquarium and Legoland Discovery Center.
Last month, at a joint meeting of the Bloomington, Minnesota city council and its port
authority, Kurt Hagen, Senior Vice-President of Development for Triple Five, admitted:
“Not opening and not being able to generate any cash for six months created some very
significant problems. It would have been much better if American Dream had burned down
or a hurricane had hit it, financially. Because we would have been covered by insurance.
But this pandemic that we didn’t see coming has not been covered and it is the worst
scenario imaginable.”
Consequently, investors are poised to take a 49 per cent stake in two other giant malls,
Mall of America in Minnesota, and the West Edmonton Mall in Canada, after Triple Five
Group, defaulted on a loan for the long-troubled New Jersey project. At the public meeting,
Hagen explained that the banks would receive 49 per cent of the profits coming from Mall of
America and the West Edmonton Mall once the company returns to profitability. The stake
in the malls will continue until the collateral is released.
50 RETAIL & LEISURE INTERNATIONAL NOVEMBER 2018
30 RETAIL & LEISURE INTERNATIONAL APRIL 2021