2001, Volume 1PAGE 4

Belz Factory Outlet World – Puerto Rico Set to Open August 16th

Belz Enterprises will open its newest factory outlet center August 16 in Canóvanas, Puerto Rico. Belz Factory Outlet World – Canóvanas will be a first for Puerto Rico, combining outlet shopping with unique restaurants and entertainment in a fully enclosed environment.

The mall will be located on a 122-acre tract 15 miles east of San Juan, accessible off PR-3 in Canóvanas. Highway 66 is expected to be extended to create a connector that will make the mall accessible from anywhere on the island.

The 446,000-square-foot center will have approximately 100 tenants and will soon be fully leased. Among prominent retailers who have already leased space are Liz Claiborne, Gap, Nike, Guess Jeans and Tommy Hilfiger.

In addition to a wide range of outlet shopping, the new Belz Factory Outlet World – Canóvanas will feature a 32,000-square-foot 10-screen multiplex-movie theater with all-stadium seating and an impressive food court with a rainforest theme. Rockscapes and waterfalls will highlight the food court’s tropical feel.

Lush tropical foliage is featured throughout the facility, which is comprised of five connected buildings designed to depict different aspects of Old San Juan, the historic old city around which the metropolitan area of 1.6 million has developed. Subtle lighting and color changes, which gradually create a day-to-night atmosphere, will take shoppers on a leisurely stroll through the "town".

"We believe this development will set the industry standard for factory outlet shopping," says Andrew J. Groveman, senior vice president of Belz Enterprises. "We are offering desirable brand-name clothing and merchandise for the home in an upscale environment where the whole family can be entertained."

Belz Factory Outlet World – Canóvanas offers access to the island's 3.9 million residents and over 4 million tourists, the latter of whom spend about $1.7 billion annually. Nearby is the El Yunque rainforest, the island’s most popular tourist destination as well as one of Puerto Rico’s most famous racetracks, leading hotels, golf courses and other tourist amenities. Canóvanas itself has a population of about 52,000 people.

The average family income on the island in 1999 was $26,266, of which 94% is disposable income compared to 87% on the U.S. mainland because Puerto Ricans do not have to pay federal income taxes. And, Puerto Ricans have relatively few retail stores in which to spend that disposable income. The island has less than 5 square feet of mall space per capita relative to the 19-square-foot average on the mainland.

Belz Enterprises has enjoyed tremendous success with other factory outlet centers located in highly trafficked U.S. tourist areas, including Orlando and Las Vegas, and anticipates similar success with Belz Factory Outlet World – Canóvanas, according to Groveman.

"Belz Factory Outlet – Canóvanas offers us a chance not only to pioneer a new standard for outlet centers but also to begin understanding how to do business in a Spanish-speaking culture. As the U.S. itself becomes more Hispanic and as possible new opportunities open to us in Latin America, the management experiences we develop in Puerto Rico will be invaluable," Groveman explains.

Photos (from top to bottom):

1. The interior of the Puerto Rico property is designed to depict the historic city of Old San Juan.
2. Belz Factory Outlet World – Canovanas, Puerto Rico is scheduled to open August 16, 2001.