Category Archives: Property Retail Market

Upcoming Waterway Point mall 90% tenanted: Frasers Centrepoint

The upcoming Waterway Point at Punggol has secured committed occupancy for 90 per cent of its retail space, about six months before its opening, Frasers Centrepoint Malls said on Tuesday (Aug 4).

Frasers Centrepoint Malls said the 370,824 square feet (sq ft) Waterway Point will offer four levels of indoor shopping, leisure and alfresco dining spaces with a view of Punggol Waterway.

Key tenants include a 24-hour FairPrice Finest, which will take up nearly 30,000 sq ft of space, a 1,500-seat Shaw Theatres, and a 7,335 sq ft Times Bookstore, which will be its largest outlet in Singapore.

“Once underserved, Punggol today is a picture of rapid development,” Mr Christopher Tang, chief executive officer for Commercial and Greater China at Frasers Centrepoint, said in a statement: “The positive take-up underscores a healthy demand for retail space in this developing area.”

Waterway Point is part of Watertown, an integrated waterfront residential and retail development by Frasers Centrepoint, Far East Organization and Sekisui House.

Source : Channel NewsAsia – 4 Aug 2015

Thong Sia Building along Orchard Road sold for S$380 million

Thong Sia Building located opposite The Paragon in the Orchard Road shopping belt has been sold to SIN Capital Group for S$380 million, marketing agent JLL said in a news release on Wednesday (Jul 29).

This works out to S$2,430 psf over the existing gross floor area for the freehold building. The 26-storey building was built in 1981 and has a land area of about 21,602 sq ft. It currently comprises seven levels of commercial space and a 19-level residential tower of 37 apartments.

JLL’s International Director Karamjit Singh, who brokered the deal, said “the planning authority has advised that they are prepared to support the redevelopment of the site into a mixed residential and commercial development with at least 60 per cent of the space set aside for residential or serviced apartments”.

He added that this is the first collective sale this year and the largest ever mixed use collective sale in Singapore. The completion of the sale is subject to the approval by the Strata Titles Board.

Source : Channel NewsAsia – 29 Jul 2015

Prices of office space up, retail space down in Q2: URA

Prices of office space rose 0.3 per cent in the second quarter compared to the previous quarter, while prices of retail space fell 0.5 per cent, the Urban Redevelopment Authority (URA) said on Friday (Jul 24).

Rentals of office space fell 2.6 per cent in the second quarter, compared with the 0.6 per cent increase in the first quarter. Rentals of retail space decreased by 0.5 per cent, compared with the 0.3 per cent decline in the January to March period.

As of end-June, there was a total supply of about 962,000 sqm gross floor area of office space from projects in the pipeline, and a supply of 774,000 sqm of retail space, URA said.

The amount of occupied office space increased by 38,000 sqm, compared to the 19,000 sqm increase in the previous quarter, while occupied retail space remained unchanged. The stock of office space increased by 8,000 sqm, while retail space increased by 25,000 sqm.

The islandwide vacancy rate of office space at the end of second quarter fell to 9.8 per cent, from 10.2 per cent at the end of the first quarter. Vacancy rate of retail space rose to 7.2 per cent, up from 6.8 per cent in the previous quarter, URA said.

Source : Channel NewsAsia – 24 Jul 2015

Plaza Singapura to undergo upgrading

Plaza Singapura will undergo interior upgrading works in the third quarter of this year, mall owner CapitalLand Mall Trust (CMT) announced on Wednesday (Jul 22).

The rejuvenation works, set to complete by Q4 2016, will cost about S$38 million and will include the upgrading of floor finishes, corridor lighting, toilets, lift lobbies and nursing rooms. More nursing rooms will also be added on Level 2 as part of the revamp.

Previously, Plaza Singapura underwent a 21-month facelift which completed in 2012, to integrate the neighbouring The Atrium@Orchard with the mall.

CMT Management Limited (CMTML), the manager of CMT, also announced CMT’s H1 2015 financial results. In H1 2015, CMT’s gross revenue dipped 0.6 per cent to S$326.9 million compared to H1 2014′s S$329 million. CMTML attributed this to lower occupancy at Clarke Quay and JCube, and the ongoing refurbishment works at IMM Building and Bukit Panjang Plaza.

Clarke Quay is also undergoing a revamp, where 57,000 sq ft of space, formerly occupied by LifeBrandz, is being reconfigured to house new tenants. Nightclub Zouk is set to take up 31,000 sq ft of space and will open in June 2016.

CMT’s net property income also dipped in H1 2015, dropping 0.5 per cent from S$228.3 million in H1 2014 to S$227.2 million this year.

On a quarterly basis, CMT’s gross revenue dropped 2.9 per cent year-on-year to S$159.6 million in Q2 2015, and net property income dropped 4 per cent year-on-year to S$109.5 million in Q2 2015.

However, CMT’s distributable income was S$94 million in Q2 2015, 0.7 per cent higher than the S$93.4 million for Q2 2014. CMT’s distribution per unit (DPU) for Q2 2015 was 2.71 Singapore cents, a 0.7 per cent increase over Q2 2015′s 2.69 Singapore cents.

Based on CMT’s closing price of S$2.18 per unit on Jul 21, distribution yield is 4.99 per cent and unitholders can expect to receive their Q2 2015 DPUs on Aug 28.

On Jul 14, CMTML also said that it would buy Bedok Mall from sponsor CapitaLand in a deal that values the mall at S$780 million. The acquisition is targeted to be completed by Q4 2015.


Current rental rates for CMT properties mostly increased when compared to preceding rental rates, which are typically committed three years before. Clarke Quay experienced the highest increase of 23.8 per cent. Meanwhile, JCube saw a fall in rental rate, with a 13.5 per cent drop.

As of Jun 30, 2015, Tampines Mall, Junction 8, Plaza Singapura, Bugis Junction, Raffles City Singapore all experienced 100 per cent occupancy. JCube had the lowest occupancy of 82.3 per cent, followed by Clarke Quay with 85.2 per cent and IMM Building with 89 per cent. Overall portfolio occupancy was 96.4 per cent, down from 98.8 per cent at Dec 31, 2014, said CMTML.

CMT also registered a 3.4 per cent year-on-year increase in shopper traffic in H1 2015. Tenant sales went up by 2.9 per cent in the same period, said CMTML.

Source : Channel NewsAsia – 22 Jul 2015

158 Cecil Street sold for S$240m

A company linked to low-profile investor Denis Jen, who owns shopping malls in Australia, is buying 158 Cecil Street for S$240 million from a fund managed by Alpha Investment Partners, the fund management arm of Keppel Land.

The price works out to about S$2,100 per square foot based on the 14-storey building’s net lettable area of around 115,000 sq ft. 158 Cecil Street is on a site with a balance lease term of around 65 years.

Formerly known as The Spazio and Dapenso Building, the property underwent a major revamp several years ago.

Alpha acquired the property for S$235.5 million in 2007 from KOP Properties, which agreed to complete a major refurbishment before delivering the property in 2009 to Alpha, which positioned the asset as a green building.

158 Cecil Street has bagged a number of accolades, including the top prize at the 2011 Skyrise Greenery Awards, organised by the Singapore Institute of Architects and the National Parks Board.

Late last month, a company controlled by Mr Jen was granted an option to buy the property at S$240 million. According to information listed by Forbes in the past, Mr Jen is a China-born orphan who studied law in Shanghai. He made his first fortune in textiles in Taiwan and Hong Kong and relocated to Singapore, then Australia, where he bought and sold businesses and built a small real estate empire of five shopping malls.

His businesses include Jen Retail Properties, the website for which states that it is a privately owned family company established as Intro International Limited in 1991 in Brisbane. Mr Jen is a Singapore citizen.

Prior to the option to purchase 158 Cecil Street was granted to a Singapore-incorporated vehicle of Mr Jen, several other parties seriously looked at potentially acquiring the asset.

Tenants of 158 Cecil Street include Facebook, which will soon move out to South Beach Tower but which market watchers suggest may retain some space at its existing premises, Bank of India and Zurich Insurance. Airbnb signed up as a tenant recently.

Source : Channel NewsAsia – 21 Jul 2015

New underground linkway to connect Yishun MRT, Northpoint City

A new underground linkway with shops will connect Yishun MRT station to the new bus interchange at upcoming integrated development Northpoint City will soon be constructed, Frasers Centrepoint Limited (FCL) announced in a media release on Monday (Jul 20).

The linkway, to be named Northpoint Link, will supplement the current underpass connecting Yishun MRT station and the bus interchange via Northpoint Shopping Centre, FCL said. About 30 convenience and “take-away” food and beverage shops will flank the underpass, which will be fully air-conditioned, it added.

Construction of Northpoint Link will begin in Aug 2015, and is estimated to be complete in two years. FCL added that there will be diversions for both pedestrian and vehicular traffic along Yishun Ave 2 during the construction period, but there would be no compromise on the number of lanes for vehicles, as well as footpath capacity.

Northpoint City comprises the 920-unit North Park Residences, the Yishun Integrated Transport Hub, Nee Soon Central Community Club, a Town Plaza, a community garden and retail and F&B outlets. It is expected to be complete in 2018.

Source : Channel NewsAsia – 20 Jul 2015

Funan DigitaLife Mall could be sold or redeveloped

The manager of CapitaLand Mall Trust (CMT) said on Wednesday (15 July) it may sell or redevelop Funan DigitaLife Mall (Funan Mall) in line with its policy of continually evaluating the trust’s properties.

“These options include and are not limited to a disposal or redevelopment of Funan Mall,” CapitaLand Mall Trust Management said in a filing on the Singapore Exchange (SGX).

CMT added that it has not entered into any agreement or transaction regarding Funan Mall, and that there is no certainty that it will enter into or conclude any such transactions.

CMT, Singapore’s largest shopping mall trust, said on Tuesday it will buy Bedok Mall from sponsor CapitaLand in a deal that values the mall at S$780 million.

The property trust’s other assets include Tampines Mall, Junction 8, IMM Building, Plaza Singapura and Bugis Junction.

Source : Channel NewsAsia – 16 Jul 2015

Revamped Capitol Theatre aiming to bring new brands to market

The old Capitol Theatre has just reopened, after a billion-dollar facelift. Along with a retail mall, the development will also include residences and a hotel. Owners of Capitol said they are adopting a strategy of bringing in new-to-market brands, as tenants, to complement its theatre and lifestyle offerings.

Japanese apparel retailer, 45r, is among the new names open for business at Capitol Piazza, the retail section of Capitol. Capitol’s strategy is to source new-to-market brands and concepts, or retailers which did not previously have a presence in Singapore.

The landlord said that aside from wanting to stand out from the retail scene, working with new-to-market brands also gives it flexibility in managing its floor space.

“Some of these luxurious brands – Louis Vuitton, Gucci – they need very big space,” said Capitol’s general manager Dawn Tan. Capitol has a “very intimate size” of 130,000 square feet, she said.

“If we go for these very high-end brands, then we would only end up with maybe only a few brands within the mall. This is not what we want. So we thought there is a market out there also for these new concepts to come in and that’s why we actually focused on these new to market concepts to be in Singapore.”

Capitol plans to explore synergies between the theatre and its retail arm, using old world charm and new offerings to engage consumers and attract tenants.

“Capitol mall is pretty unique,” said Masaki Nakashim, chief operating officer of 45r. “The theatre has a lot of history. They keep all the old buildings and make new ones. This is the same as our concept. So that’s why we decided to come here.”

“The theatre is a very important marketing tool for us because it allows us to continue to bring in different kinds of patrons,” added Ms Tan. “We can actually have musicals, forums like the arbitration forum, and also parties like the post-F1 party.

“The patron profile is constantly changing and it allows Capitol to be known and marketed to different people, and it brings a constant source, a new source of customers to capitol and to the brands.”

Property analyst Chestertons said the renovated Capitol could inject new life into the Civic District, especially the stretch leading up to the Funan Mall .

“With Capitol, the Piazza, the Theatre and the two components, Patina and residential coming up, it helps to revitalize that entire area on the North Bridge Road side, towards to Funan,” said managing director of Chestertons Donald Han.

“Hopefully it could be a spur for some of the individual owners, although the majority are strata-type owners, to refurbish the area. Because that’s an important node of retail, being connected directly to the City Hall MRT station.

“If you look at the current market, it does help to serve City Hall as a more premier retail, leisure, F&B destination because what the entire area offers will be Raffles City, Marina shopping centre destination, you’ve got now a little bit more upscale, uniqueness offered by Capitol.”

Capitol has obtained more than 80 per cent of leasing commitments to date – 65 per cent of which are new-to-market brands – with the remaining tenant renovations expected to be completed by September this year.

Source : Channel NewsAsia – 16 Jul 2015