THE retail property market has stayed resilient with rents holding up despite plenty of new supply coming on stream over the past year.

Suburban rents have been particularly strong and resisted the intense competition in the form of more than two million sq ft of space having been completed last year alone.

Experts say suburban malls with their ease of access for shoppers have been able to withstand supply pressures and survive the financial crisis better than their counterparts in the prime Orchard Road shopping belt.

But the arrival of newer suburban malls and the fact that rents are already nearing Orchard Road highs might make it harder for rents to keep rising, they add.

Colliers International’s data showed that average gross rents for prime space in regional malls stayed unchanged at $33.50 per sq ft (psf) per month in the fourth quarter of last year compared with the third.

This translates into an overall modest gain of 1.5 per cent for the year.

CB Richard Ellis (CBRE) data also showed that suburban rents inched up 3.6 per cent last year and averaged $29.10 psf in the fourth quarter. This is just shy of the historical peak of $29.30 psf in the third quarter of 2008.

Suburban rents have held firm despite newly minted malls entering the market in the fourth quarter, such as nex in Serangoon Central and Bedok Point in New Upper Changi Road.

CBRE’s data shows that average suburban rents increased from $29 psf in the third quarter to $29.10 psf in the fourth.

Ms Tay Huey Ying, Colliers Inter-national director of research and advisory, said such malls, with big population catchment nearby and good transport links, have helped rents hold steady.

Indeed, the popularity of such malls has also seen rents moving up towards Orchard Road levels in recent quarters.

In fact, the difference in rents between these segments has eroded from its five-year peak of 35.5 per cent in the third quarter of 2007 to 14.9 per cent in the fourth quarter of last year, Colliers said.

While rents in the micro-market of Orchard Road – which is expected to see about 600,000 sq ft of new retail space completed between this year and 2014 – are forecast to rise by up to 5 per cent this year, rental gains in suburban malls are expected to face resistance since rents are already nearing Orchard Road highs, Ms Tay added.

Ms Letty Lee, CBRE director of retail services, expects suburban rents to rise a maximum of 3 per cent this year, with Orchard Road rents expected to stabilise.

The suburban retail market has diversified in recent years with newer malls that have taken shoppers from the more mature ones, she added.

‘With population levels expected to remain the same, the pie is getting smaller as newer malls compete for a slice of the local consumer market.’

In Bishan, for example, Junction 8 is up against shops near other MRT stations as well as Ang Mo Kio Hub and nex, which is on the Circle Line, Ms Lee said.

Even though new retail space being completed is expected to fall to about 1 million sq ft, landlords have continued with their asset enhancement plans to stay competitive in the light of the overall rise in retail stock.

Far East Organization, for example, has announced plans for addition and alteration works to the two-storey Junction 10 mall on the Ten Mile Junction site. Singapore Press Holdings’ Clementi Mall is also expected to open fully in April.

Colliers data also showed that prime retail rents in Orchard Road have held stable for the past four quarters to close at $38.50 psf.

This has been on the back of positive consumer sentiment and strong visitor arrivals throughout the year.

Source: Straits Times, 31 Jan 2011

THE rents of prime retail space inched up slightly in the fourth quarter on the back of an improving outlook for retailers, according to consultancy Knight Frank in a report released yesterday.

Average rents of first-level prime sites with good frontage reached $29.24 per square foot (psf) in the fourth quarter, up 1.1 per cent from the third.

Strong demand at Marina Bay, City Hall and Bugis have pushed rentals in these areas to $30.21 psf.

Retailers are banking on the potential of the gaming crowd from the casinos and shoppers from the many new residential and office spaces in the vicinity, Knight Frank said.

However, overall retail rents are likely to feel some pressure when additional new supply from Asia Square and Phase 2 of Marina Bay Link Mall is completed next year and in 2012.

Average retail rents for Orchard Road remained relatively flat in the fourth quarter. Central Orchard Road rents averaged $41.81 psf while the fringe areas maintained average rents of $22.61 psf.

Overall, Orchard Road retail rents are expected to stay firm due to stabilised supply in the area until 2013.

By then, about 210,000 sq ft in the Former Hotel Phoenix, Orchard Emerald and Specialists’ Shopping Centre will be completed, Knight Frank said.

Meanwhile, retail rents in suburban Singapore continued treading upwards. The average suburban rents for prime first-storey spaces increased 3.4 per cent in the fourth quarter to $31.12.

Knight Frank expects rents of prime retail spaces in central Singapore to rise by about 3 per cent next year.

‘A full recovery to the (record high) 2008 level may be unlikely, given the increasing concerns on rising business costs and market’s adjustments to the additional retail spaces released in Central Area in 2009 and 2010,’ the report said.

Average suburban retail rentals for prime spaces are also expected to increase by 2 per cent to 3 per cent following improved consumer confidence, stronger employment figures and a greater propensity to spend, it added.

This is despite new supply from Clementi Mall and the former Katong Mall, now closed and undergoing a facelift following a change of ownership. Both the malls are slated to open next year.

Average retail rents for non-prime spaces will likely move up by a marginal 1 per cent, it added.

Source: Straits Times, 31 Dec 2010

JOANNA CHEN looks at how the retail market has changed since the 1980s and what the future holds

THE retail scene in Singapore has undergone massive change since the 1980s when shopping centres were fewer and less differentiated. The 1990s to early 2000s saw rapid growth in the supply of retail space, especially in the suburbs. Between 2002 and 2009, we have seen transformations in landlord- tenant relationships, space reconfiguration in malls, the listing of real estate investment trusts (Reits), government policy changes, and more discerning consumers.

With new shopping malls springing up in the central area as well as the success of suburban malls, the retail sector has come into its own. Here’s an insight into how Singapore’s retail market has changed since the 1980s and what the future holds.

Late 1980s: Strata-titled, family-oriented malls

With only a few single-owner malls such as Parkway Parade and Goldhill Square (now United Square), shopping centres then were mostly strata-titled. As such, any refurbishment carried out was generally piecemeal and involved individual shops rather than the entire mall.

Most of the developers in the late 1980s focused on creating family-oriented shopping malls. Tenant mix usually comprised a few anchor tenants and shops that catered to the needs of the entire family.

Tenant mix of three prominent shopping malls (Wisma Atria, Marina Square, and Plaza Singapura) showed a considerable portion (28-52 per cent) of lettable area allocated to department stores. In Plaza Singapura, both Yaohan and OG Elite were anchor tenants occupying at least four floors in the development. Tokyu and Metro, on the other hand, were secured at the two strategic ends at the cross- shaped structure of Marina Square.

To attract the target customers that ranged from children to the elderly, these malls allocated at least 10 per cent of net lettable area to bookstores, electronic stores, and arts and crafts shops. Even though Wisma Atria had the largest percentage of fashion retailers, it also offered special features such as a large aquarium at the basement and a children’s playground on the rooftop podium for a more family-friendly atmosphere.

1990s to early 2000s: Into the suburbs

Singapore’s retail landscape saw tremendous growth between 1992 and 2002 when retail supply grew by more than 80 per cent.

In line with the Urban Redevelopment Authority’s (URA) Concept Plan to have decentralised regional and sub-regional commercial hubs, a slew of suburban malls were built, giving consumers the option of being able to shop without going into Orchard Road.

The move by URA created micro markets which allowed retailers to expand their foothold into different regions. Such expansion was well-received by retailers and shoppers alike.

These suburban malls achieved high occupancy and attracted foreign retailers. Foreign department stores such as Seiyu opened in Lot One Shoppers’ Mall. Both John Little and Marks & Spencer expanded in malls like White Sands Pasir Ris, and Yishun Northpoint.

New retail trends also surfaced during this period of change. Suburban malls interweaved shopping with entertainment, leisure, and education. Cineplexes and libraries could be found in malls such as Hougang Mall and Junction 8 to provide a more holistic experience for shoppers. Atriums were also created within the malls for entertainment and family activities.

Malls in Orchard Road and other downtown core areas offered the alternative of concept shopping where themes and niche marketing were carefully thought through and implemented, typical examples being The Heeren Shops and Funan DigitaLife Mall.

2002-2009: Retail transformation

From 2002 to 2009, there was a dramatic transformation in the retail landscape. The successful landlord-tenant relationships where the developer, major owner, major tenant, and even mall manager are related companies, as seen in Ngee Ann City, are rare. Most malls before 2002 followed the typical landlord (developer) and tenant (retailer) relationship.

However, with the listing of Reits in 2002, this relationship was transformed. The role of landlords could pass from developers to asset managers, while shoppers could also have vested interest in these malls as shareholders of listed Reits.

More importantly, the nature of Reits constantly challenges the asset managers to think out of the box to create better value for shareholders. This includes growth strategies to acquire properties and initiatives to enhance existing retail assets. This led to positive trickle-down effects for shopping malls here.

During this period, the configuration of the typical shopping mall also evolved. Government policy allowed creative use of space, as seen in malls like Bishan Junction 8 and Tiong Bahru Plaza in 2003.

Unit sizes of shops shrank due to the growing preference for smaller mini-anchor tenants such as Mango, Zara, etc. Such preferences are likely due to higher spending power and the increasingly affluent lifestyle of consumers.

There were also malls that comprised many small niche retailers to provide variety. A pioneer of this trend was Far East Plaza. In 2002, with the closure of department store Metro on the first level, Far East Organisation successfully put in place a variety of shops catering to the young and trendy.

2010 & beyond: The best is yet to be

With the continued success of suburban malls and the opening of new city malls like ION Orchard, 313@Somerset, and Orchard Central, Singapore’s retail scene has grown colourful and vibrant. The success of the suburban malls is clearly demonstrated in the opening of Uniqlo’s first flagship store in Tampines One. Orchard Road, the main shopping boulevard, has its own innovative architecture with malls such as Orchard Central and *Scape. The multi-sensory experience in ION Orchard has also taken the retail experience to a higher level.

So what lies ahead? The prospects are bright for the retail market. On the supply side, malls in Orchard Road near Cuscaden Road, Claymore Drive, and Angullia Park have potential for development. There will also be an upcoming wave of supply from both refurbished and new suburban malls. The former Katong Mall is undergoing a $60 million facelift to create a new shopping experience with a Peranakan theme. At the opposite end of Singapore, JCube (the former Jurong Entertainment Centre) offers an Olympic-sized ice-skating rink, a multiplex cinema, and retail offerings around the clock.

On the demand side, the many new shopping malls added in the central area have enhanced Singapore’s status as the retail city of the East. Complemented by the vibrancy from the two integrated resorts, the city is likely to attract more tourists and shopping dollars.

There will be a rising tendency for locals to prefer hanging out at shopping malls, given the combination of smaller homes to relax in and a growing preference for eating out. With increased affluence, there will also be greater propensity for locals to spend on their favourite pastime – shopping.

Over the last 30 years, Singapore’s retail landscape has grown increasingly vibrant. But this does not mean there isn’t room to grow. With the synergy from exciting events such as Formula One and the bustling activity generated by the integrated resorts and Marina Bay, the best is yet to come.

The writer is an analyst with Knight Frank Consultancy & Research

Source: Business Times, 23 Sep 2010

CAUSEWAY Point is embarking on a $72million facelift to better serve the 300,000 residents in Woodlands.

The 12-year-old mall at the Woodlands regional centre is part of the portfolio that makes up Frasers Centrepoint Trust (FCT), which yesterday reported record third-quarter earnings.

For the three months to June 30, FCT achieved a 34.6per cent rise in income available for distribution to $16.3million. This translates to a 6.7per cent rise in distribution per unit to 2.07 cents.

During this period, gross revenue rose by 44.7per cent to $30.7million, while net property income climbed by 46.3per cent to $21.5million.

The upgrading of Causeway Point – FCT’s crown jewel – will boost income and ‘provide further organic growth in years to come’, said Dr Chew Tuan Chiong, chief executive of the manager of FCT.

Opened in 1998, the seven-storey mall has a net lettable area (NLA) of about 418,500 square feet. To unlock value, space occupied by ‘big box’ tenants, for example, Metro department store, will be reduced to 50per cent of NLA from 65per cent currently.

‘As specialty tenants pay higher rentals in view of their smaller footprint, this will help to raise average rental at the mall,’ the FCT manager said.

To improve visibility of shops and create new retail space in prime locations, escalators at the mall will be moved to more convenient areas. A new food and beverage cluster on level five will be created.

Overall, the 30-month upgrading is aimed at increasing net property income by 22 per cent to $51.5million.

A review of its third-quarter results showed that FCT was successful in raising rents. Rental from renewal and replacement leases commencing during the quarter at Causeway Point and Anchorpoint saw an average increase of 8.5 per cent over expiring leases. The occupancy rate of all its properties remains at 99.4 per cent.

FCT units yesterday fell one cent to $1.39.

Source: Straits Times, 24 Jul 2010

Plans for former Specialists’ Shopping Centre and Hotel Phoenix site include 500 hotel rooms, 224,000 sq ft of retail space

A NEW shopping and hotel destination is set to take the Orchard shopping belt by storm in 2013. On offer are 500 hotel rooms and about 224,000 sq ft of retail space, as well as two open plazas for busking and artist performances.

This is the plan unveiled by United Engineers Ltd during the groundbreaking ceremony yesterday for the site that previously housed the Specialists’ Shopping Centre and Hotel Phoenix complex – which has a gross floor area (GFA) of 538,196 sq ft. The development is designed by internationally-renowned architectural firm Tange Associates.

The property group was appointed by OCBC to build the shopping cum hotel destination in June through an arrangement that allows OCBC to retain ownership of the prime Orchard Road property after the redevelopment is complete.

Directly opposite this refurbished shopping and lifestyle destination is the 218 Orchard Road site (previously the home of Orchard Emerald). Like its sister sitting on the other side of the road, the site, which occupies a GFA of 104,410 sq ft, will be developed into an 11-storey building with two basement floors. About 37,674 sq ft of space will be devoted to offices, while 29,063 sq ft will be retail space. The site will be developed by OCBC’s insurance subsidiary Great Eastern Life, and UEL will act as project manager.

To provide a seamless way for pedestrians to make their way to and from the two destinations and to the Somerset train station, a glass pedestrian bridge linking the development to the property sitting opposite – formerly Orchard Emerald – is also in the works by UEL. It will also be constructing an underpass that will help to link the hotel cum retail property to the Orchard Emerald site. The redevelopment of the Specialists’ Shopping Centre site, along with the construction of the glass bridge and underpass, is slated for completion in the second quarter of 2013.

OCBC said that the total development costs for both properties is about $700 million, with about $150 million to be spent on the old Orchard Emerald site.

Said Jackson Yap, group managing director and chief executive of UEL on the former Specialists’ Centre development: ‘Its unique architecture that straddles both sides of Orchard Road, and with the glass overhead bridge, will offer a new postcard view of Orchard Road.

‘With the glass overhead bridge, the Orchard Road Christmas Light-up will also have new decorative possibilities. We strive to create a new focal point in Orchard Road that will be buzzing with activity and excitement.’

Source: Business Times, 17 Jul 2010

Singapore’s Orchard Road will be adding another new face to its shopping belt.

A retail, hotel and office development will soon come up at the sites of the former Specialists’ Centre and Hotel Phoenix, as well as Orchard Emerald mall.

The project, costing some S$700 million, is expected to be completed in the second half of 2013.

A groundbreaking ceremony on Friday marked the start of the redevelopment of three neighbouring sites on Orchard Road.

Where the former Specialists’ Centre and Hotel Phoenix used to be, a new 4-star hotel with about 500 rooms will come up, along with nearly 21,000 square metres of retail space.

United Engineers (UEL) is the developer of the site, which is wholly owned by OCBC.

Across the road, the former Orchard Emerald site will contain around 3,500 square metres of office space and 2,700 square metres of retail space. The site is wholly-owned and developed by Great Eastern Holdings.

The two sites will be connected by a glass overhead bridge across Orchard Road, which developer UEL said is the first in Singapore.

UEL is not concerned that its new development is a relatively latecomer in the saturated Orchard Road shopping strip.

Jackson Yap, CEO, United Engineers Limited, said: “We are the last of the jigsaw that would make this into a significant shopping area. The key to this is connectivity.

“You can go seamlessly in bad weather and so on, into the three shopping malls. You can cross the street, and also shop on the other side of the road.”

The new development will also be connected by passageways to its neighbours 313@Somerset and Orchard Central. Its Basement 1 will also be connected to the Somerset MRT station.

UEL said it is confident it can generate decent foot traffic.

Mr Yap said: “Phoenix Hotel has always been well-occupied, partly because of its location and also its proximity to many shopping malls. So we expect the hotel to be full and the hotel is full because we have good shopping tenants!”

A key tenant will be a new Singapore Visitors Centre, but the developers are keeping mum on the retail mix for now.

Observers say the new development may also feature some high-end brands, given Orchard Road’s reputation as a premier shopping belt.

Source: Channel News Asia, 16 Jul 2010

Makeover to give 20-year-old mall a cinema, mix of F&B outlets and upmarket brands

THE 20-year-old Katong Mall in East Coast Road will undergo a $60 million facelift.

When it reopens in the third quarter of next year, the mall will have about 150 shops including a cinema, retail outlets as well as a myriad of food and beverage outlets, pubs and bars.

The current five-storey building will have an additional floor built at the top to house a Golden Village cineplex.

There will also be an additional basement level to ease the building’s parking squeeze. The extra level will boost the maximum capacity of its carpark to 310 spaces, from the current 179.

The mall will also have a Peranakan-themed concept to fit the neighbourhood, which has historically been a Peranakan enclave in Singapore. The management said it will also consider bringing in tenants that tie in with the theme, such as Peranakan restaurants.

The new look for Katong Mall is the developer’s overall plan to jazz up the building to appeal to the affluent working professionals living in the area.

Previously, the tenants in the mall were mainly educational and child enrichment services such as tuition and dance classes.

‘We hope to better the experience for our retail customers as we redevelop the site into a more vibrant hub with an exciting and desirable tenant mix,’ said Mr Loh Chin Hua, managing director of Alpha Investment Partners, which holds a majority stake in Katong Mall.

The mall, which will be renamed, was bought over earlier this year from Tuan Sing Holdings for $247.55 million.

The new owners are a consortium of investors brought together by Mr Pua Seck Guan, chief executive officer of Perennial Real Estate.

The mall had previously faced controversy when 23 of its former tenants banded together to lodge a protest with the Strata Titles Board against the collective sale of the shopping complex in late 2007. The matter was eventually resolved early last year when the objection was withdrawn by the tenants.

All previous tenants have now moved out and the new management said there are no immediate plans to bring any of them back.

‘We have to consider the positioning of the new mall as a lifestyle and F&B hub,’ said Mr Pua. ‘However, we will still consider the old tenants if they fit in with this concept,’ he added.

In the past, the mall was largely patronised by young students on their way to various enrichment programmes and after-school activities.

Now, the management wants to attract professionals in the vicinity who have spending power.

Mr Pua said the new mall will aim for more upmarket brands to draw in those who live nearby, who mostly live in private houses and condominiums.

The mall has already signed up three anchor tenants – Golden Village (GV), Cold Storage and BreadTalk Group – which will occupy about 32 per cent of the available space between them.

GV’s eight screening halls will have two of its more upmarket Gold Class halls – the first such halls in the eastern part of the island.

Cold Storage’s supermarket will also be of a more upscale concept, known as Market Place, which is also the first in the east. Other Market Place outlets are found in the city, such as in shopping complexes Paragon and Tanglin Mall.

The revamped mall is also a first for several other reasons.

It is Mr Pua’s first local venture in property since stepping down as chief executive of CapitaLand Retail in November 2008, after about eight years with the company.

It will also mark BreadTalk’s first venture into retail property investment as it holds about an 8 per cent stake in the mall.

BreadTalk chairman George Quek said: ‘After 10 years of opening our food and beverage outlets in malls, I’ve seen and learnt how they work. This area also suits us as we do not have many of our brands here.’

The BreadTalk Group operates the BreadTalk bakeries, Food Republic food courts, and the Din Tai Fung and RamenPlay restaurants.

To Katong residents, this new shopping mall is a welcome addition to the neighbourhood.

‘I’m really looking forward to having a movie theatre in the area because it will be so much more convenient when I want to catch a late-night movie,’ said Ms Jacqueline Tan, 23, who lives in East Coast Avenue.

‘More parking space would be great along that stretch of road which is notorious for its limited spaces,’ she added.

——————————————-
New name, new look
Previously
Katong Mall used to house mainly educational and child enrichment services, such as tuition and dance centres.

After revamp
The mall will be renamed and turned into a lifestyle and food and beverage hub with a Peranakan-themed concept.

There will be 150 shops including a Golden Village cinema, Market Place supermarket, other retail and F&B outlets.

Source: Straits Times, 10 Jul 2010

Tenants hope new lifestyle store will lure crowds back to deserted mall, a former youth hangout

It was lunch time last Wednesday at The Heeren Shops in busy Orchard Road.

You would think the eateries at its basement and on the fifth floor would be packed, but, at Thai Express, only a handful of tables were occupied.

Just two shop spaces away, at Fish & Co, not even one customer was spotted.

And it was not only the eateries that were deserted.

Manicurists at The Nail Spa & Wellness chit-chatted and worked on each other’s nails.

A hairstylist at UrbanHair by Ginrich was busy – fussing over his own hair.

There were no customers at either shop.

The shopping mall, a popular hangout with young adults about four years ago, has lost a lot of its vibe.

A former anchor tenant, music store HMV, has packed up and gone, and glitzy malls like Ion Orchard and 313@Somerset are now the new buzzwords with shoppers.

‘When The Heeren opened, people had to squeeze through crowds, and I’d see about 200 people walk past in an hour,’ said Mr Richard Tat, 51, owner of Body Decor Tattoo and Piercing.

‘These days, hardly anyone walks by,’ said the Heeren tenant of 10 years, who now depends on regulars for business.

Days can be slow. Last Wednesday, six hours after he started work at noon, the tattoo artist had done just one tattoo and one piercing and had sold a replacement ball for a navel ring.

Indeed, that day was not a good one either for many other tenants, going by what The Sunday Times observed between 9.45am and 10pm.

We saw people venturing into the six-storey mall, but many just window shopped on the first floor before walking out.

Most of those interviewed said they were looking only for a specific item and were not interested in checking out the shops.

Even fewer bought anything.

Certainly, at 2pm, there were no shoppers in the youth zone on the fourth floor, as loud techno music blared from some shops.

Around 6pm, things got a little better. We counted about 30 people on the fourth floor, which is occupied mostly by shops selling apparel.

But there were fewer than 15 patrons at the restaurants on the fifth floor.

The dearth of traffic was despite at least 19 shops in the mall offering discounts of up to 75 per cent, though Pasta de Waraku’s student discount of 25 per cent seemed to be working.

It was the only restaurant on the fifth floor that was half-full at 1.30pm and 8.30pm. Other eateries were, at the most, about one-fifth full.

It was the same story with the basement eateries.

They were mostly empty, save for the newly opened Kiseki Japanese Buffet Restaurant, which attracted a queue.

When the music stopped

Tenants have been wringing their hands ever since HMV pulled out in January this year. The music store relocated across the road to 313@Somerset, less than a five-minute walk away.

‘When HMV was here, we would be able to get more foreigners and increase our sales. Without it, we see a 30 to 40 per cent decrease in sales,’ said Ms Cherly Wong, store manager at shoe and apparel outlet Converse on the third floor.

Fewer customers could have prompted some tenants to pull out. The Sunday Times estimated that 25 per cent of shops were available for lease.

According to Swee Cheng Management, the company that manages the mall, it has an incoming tenant, hairdressing salon Shunji Matsuo. It is in talks to fill up six units.

Efforts have been made to keep up with the changes in the Orchard Road area.

The 14-year-old Heeren was renovated two years ago, with changes made to the basement and fifth floor to make for more retail and recreation space.

Last year, an outdoor refreshment area was built and several eateries, such as McDonald’s, set up shop.

Last month, the mall even hosted this year’s Manhunt Singapore in a bid to whip up excitement.

Shoppers, however, remained lukewarm.

Ms Jocelyn Chan, 22, a Singapore Management University student, said she used to shop at The Heeren during her secondary school days, when it was still a trendy hangout.

Now, she prefers malls that carry international brands like Zara and Topshop. ‘These days, I come only when the eating places at other malls are too crowded,’ she said.

Tenants are now banking their hopes on ALT, the new anchor tenant which takes up the space vacated by HMV.

ALT, a lifestyle concept store targeting shoppers from their mid-20s to mid-30s, opened last Thursday.

Mr Ignatius Koh, 27, owner of Coalition Store, which sells clothes and accessories on the fourth floor, said: ‘The crowd has been slow because we’ve been missing an anchor tenant for three levels of shop space.

‘I’m expecting things to go back to normal once ALT opens,’ he said last Wednesday.

The folks at Indonesian restaurant Desa Kartika share the same hope.

‘We’ll be happier once the anchor tenant opens. It will revitalise Heeren again,’ said a spokesman.

Source: Straits Times, 11 Jul 2010

Cold Storage’s Market Place, Golden Village and BreadTalk will lease about 32% of NLA

A NEW Peranakan-themed mall will soon take the place of the former Katong Mall and mark the debut mall for Pua Seck Guan’s Perennial Real Estate in Singapore.

Mr Pua is CEO of Perennial Real Estate and formerly CEO of Capitaland Retail.

The mall, located at the junction of East Coast Road and Joo Chiat Road, will have a net lettable area (NLA) of 207,000 sq ft, 20 per cent larger than before.

It has already secured three key tenants. Cold Storage’s Market Place will take up about 13,000 sq ft of space. Meanwhile, Golden Village multiplex will take up 30,000 sq ft, boasting eight halls, two of which will be Gold Class Halls. This will be a first in the eastern part of Singapore. The third key tenant is George Quek’s BreadTalk group, which will open a 15,000 sq ft Food Republic Food Atrium and 7,500 sq ft of restaurants such as BreadTalk, Din Tai Fung and Toastbox.

The space leased by these three tenants will amount to about 32 per cent of the NLA.

The mall will feature six levels of retail – basement 1 and from level 1 to 5, with an atrium on level 2. Basements 2 and 3 will have 310 carpark lots.

The mall is owned by Perennial Katong Retail trust, a private trust constituted for the purpose of buying Katong Mall. Investors in the trust include Alpha Investment Partners Limited’s Asia Macro Trends Fund, which holds a majority stake of 77 per cent. It is a unit of Keppel Corp. Other investors include BreadTalk Group Limited and Mr Pua, among others. The mall will be managed by Perennial (Singapore) Retail Management Pte Ltd.

Katong Mall is currently undergoing redevelopment and is expected to be ready by the third quarter of 2011. The contract is worth $60 million and has been awarded to SEF Construction Pte Ltd.

‘The expected rent is about $12 psf per month on average,’ said Mr Pua.

The mall, designed by DP Architects, will reflect the Peranakan culture that surrounds the mall and seamlessly integrate itself with the many F&B outlets around the area. For example, the first two floors will be dedicated to F&B and bars that will operate till extended closing hours that will complement the surroundings and the cinema upstairs.

Mr Pua believes that the new mall will do better than the former strata-titled Katong Mall because it will come under single ownership, where Perennial Retail Management will be able to control the tenant mix and positioning.

About 30 per cent of the mall space is expected to be designated F&B with another 30 per cent dedicated to fashion and accessories.

Source: Business Times, 10 Jul 2010

SMRT shares plans for Orchard, Circle Line at launch of Esplanade Xchange

SMRT is carving out a new shopping area at Orchard MRT station – and plans more such spaces at upcoming stations on the Circle Line.

The transport group shared the plans at the launch yesterday of Esplanade Xchange – a 2,000 sq m retail enclave at the Esplanade MRT station.

Teo Chew Hoon, vice-president of SMRT’s commercial and taxi divisions, said that Orchard Xchange could be ready at the end of the year and will have a lettable area of around 1,500 sq m. The tender process for space has started and the group expects good take-up.

There are also plans for ‘a few’ Xchanges at MRT stations in Stages 4 and 5 of the Circle Line, Ms Teo said, without elaborating on where they might be. These stages of the line will run through such places as Botanic Gardens and Holland Village.

SMRT now has seven Xchanges. Esplanade Xchange is the third largest, after Raffles Xchange (about 2,400 sq m) and Tanjong Pagar Xchange (about 2,000 sq m). The group has about 29,000 sq m of retail space across the SMRT network.

Esplanade Xchange is fully let and there will be 26 shops. Tenants include the Infocomm Development Authority of Singapore’s iExperience centre, Coffee & Toast, Dunkin Donuts and IT gadget retailer Juzz1. More than 90 per cent of the outlets have opened and all will be operating by the middle of this month.

Rents at Esplanade Xchange are at ‘market rates’, Ms Teo said, declining to elaborate further. At the nearby Suntec City Mall, the committed average passing rent was $10.89 per sq ft per month in March, according to Suntec Real Estate Investment Trust’s first-quarter financial results.

Ms Teo said that Esplanade Xchange’s location is a strong selling point. It is near Suntec City, Marina Square, CityLink Mall and Bras Basah, and will be directly linked to Raffles City Shopping Centre around the middle of the month. She expects pedestrian traffic to grow after the Circle Line is completed.

Juzz1 general manager Warren Teh said that the store has about 600 walk-in customers a day, and he expects the number to grow after the link to Raffles City opens.

SMRT shares closed unchanged yesterday at $2.32.

Source: Business Times, 9 Jul 2010