SPG
#Well, Europe, like I said, we are really excited on the Provence deal.
We own 90% of it.
That's a big project in a big market that hasn't seen a quality outlet like that.
So that's good news.
There's two or three others through McArthurGlen that we are making good progress in, one in Spain that we hope to start construction in 2016 on as we go through the permitting.
So that's up there as well.
Another one in the western part of Paris that we are making good progress on.
Another one in Belgium that we're making good progress on.
And in Asia, we've got two or three others that are a little more difficult to predict but we've got our second one in Malaysia that we are confident we will get started as well as Mexico City.
We expect ---+ in Mexico we expect to start one next year as well.
So we're making progress.
Well, if they are pop-up, generally, they don't convert but more and more retailers are testing pop-ups to decide whether they want to a long-term ---+ longer-term deal.
But I would say generally there is an increase this year primarily because we have a little bit more space from the bankruptcies that we've had this year.
But <UNK> just to remind you, we don't include that in our occupancy.
It's got to be a year in that but there will be more activity in pop-up stores for the season just because we've got a little bit more vacancy due to some of the bankruptcies.
You are starting to see a little bit more of that.
I think that's safe to say.
In what sense.
Our Galleria is such a great asset, it tends to ---+ it's kind of unambiguous number one.
For a market of that size, it's kind of unambiguous number one shopping center.
So it tends to weather any economic downturn generally.
But I will say this.
Look, we are not ---+ our retailers are not immune to a little bit of a down economy and Houston is also a big tourist market for the Mexican nationals.
So there might be some slight sales retail sales impact but it will have no impact on the long-term rate asset that the Houston Galleria is as well as as you know we are doing a significant amount of transformation of that asset with the new Saks store, the new Saks wing, the new Webster's which is going to open in the next 30 days or so.
We have a lot of phenomenal stuff going on there.
But sure, could retail sales be marginally impacted there.
Sure.
But Houston Galleria tends to continue to way outperform just because it's such a great asset.
<UNK>, I don't know if you want to add anything.
No, I think that it's very well positioned and as <UNK> said, it has got the unique mix of anchors, restaurants and small shops in that market and it has been very enduring over cycles in the energy belt for decades.
And if anything I think Houston generally has become less of a ---+ I would certainly say 20+ years ago it was more boom bust but with the medical, with the universities, the medical facilities there, it's a much more diversified economy than just oil and gas.
I'm sorry.
I didn't hear your first part, <UNK>.
Again, I don't want to overreact.
There's a little bit of softness due to the strong dollar with US tourism.
You are seeing that in all sorts of businesses, the hotel business, whatever.
We are dealing with it.
But the fact is the international properties are actually performing very, very well.
Europe sales retail sales is actually relatively impressive, the Klepierre portfolio.
The sales, the outlet sales that we have with McArthurGlen are very impressive.
Japan, you see that's in our 8-K.
They are very impressive, up what 7% I think.
Korea, a little bit ---+ I'd say the only market that's a little soft is Korea, a little bit because ---+ not SARS but whatever the last version was, MARS, MRSA, whatever and the Chinese consumer there probably going a little bit less to Korea for the time being.
But I would say Mexico's sales are ---+ we've got one asset.
Canada is great, Toronto is terrific, Montreal is finding its market increasing.
So generally, those centers are very very ---+ we have been very pleased with those results.
You mean with respect to Corio.
I just want to ---+ look, they bought Corio.
We don't own them so we are not integrating with them.
I just wanted to distinguish that.
I would say, look, they have done over the three years we've owned it, they've done a lot of transformation, selling a bunch of stuff, buying a bunch of stuff.
That's pretty much past them.
The big focus next year is really operationally which they through osmosis is improving their capabilities of doing that.
And that's been the big focus I'd say in 2016.
Now that the integration with Corio is pretty much done, the sale of the big Carrefour portfolio is done, and so I think it's going to be an operational story.
But we are not operating the business, we are providing strategic input.
And I think they've done a very good job of gleaning whatever nuggets of strategy we are able to impart and ignoring the ones that have no value.
Because what ---+ sometimes we don't have the right strategy so they are doing a good job.
But I think operationally there's I'd say they are the first to admit that they can continue to improve just like we can.
And I think that's a big focus for them in the upcoming years.
But we are not integrating them.
They are running their business.
Well, look, there's always a gap in terms of how we might do things versus how they do things there.
They are not ---+ I still think there's room where they could be operationally better and that will take longer for them to achieve.
But I have confidence they will get there.
We will help out as much as we can.
They're pretty good and they are doing a good job.
Well, I think I do think perhaps the international business may offer a few more opportunities.
But they are very creative folks along with our resources dedicated to it.
So I wouldn't rule out domestic opportunities but I would say maybe marginally more opportunities internationally than here but I wouldn't rule out domestic opportunities as well.
Sure.
Yes.
Yes, but we did see a little bit of softness there as well.
So all of these assets buck the trend but they might have again the retail sales not the cash flow may have some short-term impact.
But Sawgrass had a little bit of softness as well, not ---+ it's not immune.
Okay, thank you so much and we will talk to you soon.
