Category Archives: Shopping

Frasers Tower received strong interest ahead of its completion

About 30 per cent of upcoming Frasers Tower, in the heart of the Central Business District, has been leased – or has received a leasing proposal. The relatively strong interest comes even though the 38-storey office building in Cecil Street is not due to be ready for tenants for more than a year.

The interest came from multi-sector conglomerates, legal services and technology firms, including the first signed lease with The Executive Centre, a serviced office provider, which will take up an entire floor covering 20,000 sq ft.

The supply pipeline favours Frasers Tower, as there are just a few new developments in the core CBD from mid-2017 until the end of 2020: Marina One, UIC Building and the redevelopment of the CPF Building. Frasers Tower has 663,000 sq ft in total net lettable area. An adjacent three-storey building will host food and beverage tenants.

 

Middle Road Complex on sale again

THE Prospex, a retail and office building in the Middle Road near Bugis +, is back on the market, this time with an indicative guide price “in excess of S$70 million” — lower than the S$80 million asking price when the building was previously put up for sale in October 2015.

A price of S$70 million translates to S$2,081 per square foot (based on the total net lettable area (NLA) of 33,631 square feet) with a 99-year leasehold tenure with a balance term of about 57 years.

Located at the busy corner of Middle Road and Victoria Street and just a stone’s throw from Bugis MRT Station, The Prospex consists of a two-level retail podium (with 4,040 sq ft NLA) and seven levels of offices above (29,591 sq ft).

The building is about 85 per cent leased with the top floor and some units on the seventh floor still available for lease.

Prospex is being offered by Hong Kong and Singapore-based property fund manager Pamfleet, which bought the former Bright Chambers on the site at S$45 million in 2013 and made major additions and alteration works to the building to achieve its current modern look. The Prospex received a Temporary Occupation Permit in the first quarter of 2016.

Tenants in the building include: Shanghai-based Mellower Coffee (which occupies the entire two-level retail podium); 701 Search backed by SPH; and Zrii, an international nutrition company based in Utah.

As the property sits on land fully zoned for commercial use, foreigners may buy without regulatory approval . There is also no additional buyer’s stamp duty and seller’s stamp duty for such property.

Online Stores getting offline presence amidst slump

The falling rental rates provide a silver lining for online retailers amid the current retail slump.These retailers have a chance to venture offline and into shopping malls. Last month, for example, online furniture retailer HipVan opened its permanent 11,000 sq ft flagship store at The Cathay in Dhoby Ghaut.

Lifestyle retailer Naiise similarly opened its 8,500 sq ft flagship store in that mall last June. Other online retailers, such as Reebonz, Love Bonito and Ohvola, have opened short-term stores in Suntec City and Orchard Gateway, to catch shoppers who want to see, touch or try on a product before buying.
 The islandwide vacancy rate for retail space was 7.5 per cent at the end of last year, up from 4.5 per cent at the end of 2013, Urban Redevelopment Authority (URA) data showed.
The Median rental rate per sq ft per month for the Orchard Road area is $9.82, the first time it fell below $10. The median rental rate for retail space in the third quarter of last year was the lowest on record. 

The median rental rate for retail space in the third quarter of last year was the lowest on record, falling to $9.82 per sq ft per month for the Orchard Road area – the first time it fell below $10, according to URA data.

Naiise has five other stores in malls such as Westgate and 112 Katong, which offer self-collection services for online orders. Its online plus offline strategy has paid off, with its six retail stores combined now generating more revenue than its online store.

 

HipVan co-founder Danny Tan, 33, said the retail slump has benefited his business, which now occupies the space formerly rented by sportswear brand Adidas. The store is seven times larger than HipVan’s previous pop-up space in Millenia Walk and Suntec City. It features more than 1,000 of HipVan’s bestsellers, including beds, dining tables and rugs. Its website attracts 200,000 to 300,000 views a month, while revenue has been growing by 12 per cent on average every month.

Meanwhile, high-end fashion retailer Reebonz, whose lease for its pop-up boutique in Suntec ends next year, is moving into its own eight-storey building in Tampines this month. The building will house a permanent showroom.

Good Take-up at Guoco Tower space

TECH and media companies are making their presence felt at Guoco Tower in Tanjong Pagar, accounting for 37 per cent of the space that has already been committed.

The premium Grade A office component of Tanjong Pagar Centre, a mixed-development project being built by the listed GuocoLand group, has 890,000 sq ft net lettable area of which 80 per cent or some 712,000 sq ft is either taken up or subject of advanced leasing discussions. Of this space, approximately 263,000 sq ft has been committed by tech and media companies, including Amadeus and OpenLink.

Earlier media reports also tipped Agoda, Dentsu Aegis Network, Palo Alto Networks, ING, Itochu Singapore, and SAS Singapore as heading for Guoco Tower. Dentsu Aegis is expected to be the biggest tenant with about 100,000 sq ft.

GuocoLand has also named as new tenants The Straits Trading Company, which will be moving out of 9 Battery Road; Danone, which is exiting Goldbell Towers along Scotts Road; shoemaker Asics, which will be leaving PWC Building; and Teva Pharmaceutical Industries, which is exiting three locations.

The offices, which received Temporary Occupation Permit (TOP) last month, are on the lower 38 levels of the 64-storey tower, which is Singapore’s tallest building at 290 metres. Levels 39 and upwards of this tower comprise the 181-unit Wallich Residence. A second tower houses the 222-room Sofitel Singapore City Centre. Both of these components are expected to receive TOP between late this year and early 2017. The project also has a retail component, part of which has already received TOP.

Guoco Tower is counting on its prime location, flexible, efficient and scalable design, Tanjong Pagar Centre’s tightly integrated retail and lifestyle components, and of course, the prestige factor of being in Singapore’s tallest building as its selling points.

Most of the MNCs in Guoco Tower will be using it as their regional headquarters with average headcounts of 300 to 500 persons, coupled with relocations of many of their senior management staff from their other headquarters or regional offices to Singapore.

This would create a lot of demand for F&B, services, hotels and even housing in the area and catalyse Tanjong Pagar’s transformation. The gross effective monthly rents at Guoco Tower are estimated to be between S$8.50 and S$11.00 per square foot – comfortably above the average of S$7 to S$8 psf in the Tanjong Pagar office micromarket, and comparable to other premium Grade A developments in Marina Bay.

 

Funan closed for revitalization

Funan DigitaLife Mall, which was closed this July, will undergo three years of redevelopment works, according to CapitaLand Mall Trust Management on Jul 22.

This is to enhance the site’s attractiveness as a lifestyle destination in the revitalised Civic and Cultural District in Singapore. The mall will reopen in 3 years’ time and will cost $560m. it will yield 887,000 sqft of floor space, double the current size. It will be a mixed use complex of 2 office towers, serviced residences and retail components.

LVS looking to offload MBS mall next year

Owner of the iconic Marina Bay Sands, Las Vegas Sands (LVS), is looking to put up Shoppes at Marina Bay Sands (MBS) next year. The exclusive rights for LVS to operate the mall MBS was granted from 2007-2017, so that the operator can recoup the billions of dollars in construction costs and investment.  The same right has been given to Genting Singapore for Resorts World Sentosa.

The sale of the mall however is subjected to government approval. The operating income is assumed at around US$150m and the valuation of the mall is approximately US$4-5b based on 3-4% cap rate. In first quarter, the mall revenue is at US$39m, hotel room revenue at US$88.9m and Convention/retail/other revenue at US$46m, according to MBS reports.

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Scheme for underground links in Orchard Road

Urban Redevelopment Authority (URA) has scheme that provide cash grants for malls to build underground links along Orchard Road. The incentive started in 2004 and gives up to $28.7k psm for the construction of underground walkways. However there are little take up for the incentive. The biggest obstacle cited is cost, among other challenges.  Another challenge is the fear among malls that the links will allow flow to competitors.

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Villas at Somerset area

Went to an Open house at Brentwood Villa and Villa Madeleine this week. There are beautiful houses right at the periphery of Orchard area. Convenience is definitely is an understatement. The interiors were also luxurious. At 2300sqft of luxury living space right in the prestigious district of district 9 it is only at $10k per month ie slightly over $4psf. A bigger house at Villa Madeleine that is twice the size is available for only $15.2k. That’s only $3.7psf.

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Dempsey gets a new lifestyle quarter

Tanglin Village started out in the 1860s as army barracks. In the 1990s, it became known for its furniture shops. After the turn of the century came upmarket restaurants such as PS. Cafe, as well as art galleries.

Now, Tanglin Village is undergoing a makeover and is getting Dover Street Market a well-known multi-label fashion store in  a new lifestyle quarter.

Chang Korean BBQ Restaurant and antique store Shang Antique – will move out when their leases expire on Feb 29, to make way for the new tenant.

Como Dempsey, a complex housing Dover Street Market, is an edgy concept store conceived by Comme des Garcons’ Rei Kawakubo, and a specially conceptualised restaurant and bar by renowned French restaurateur Jean-Georges Vongerichten. The 5,268 sq m site, comprising blocks 17 and 18, will also have a new dining concept offering signature dishes from around the world. Popular local Peranakan restaurant Candlenut has been included in the proposal.

The new project is expected to “significantly contribute to creating and sustaining the vibrant Dempsey atmosphere and Singapore’s tourism scene”, said Ms Ranita Sundramoorthy, STB’s director of attractions, dining and retail.
Como Lifestyle offered to pay a monthly rent of $106,300 for an initial lease term of three years, renewable up till Dec 31, 2022.
The debut of “Como Dempsey” will mark the latest chapter in the area’s transformation.
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Tiong Bahru Plaza reopen next year after major revamp

Tiong Bahru residents will soon have a newly refurbished mall to go with the hipster joints and boutiques their estate is known for. By the end of next year, the 21- year-old Tiong Bahru Plaza will fully reopen with a more modern look after renovations, which began a year ago, are completed.

The makeover, which costs more than $90 million, aims to draw younger residents and families already living there.

After its makeover, the mall, which draws 1.2 million visitors each month, will cover 215,000 sq ft, up from the previous 190,000 sq ft. It will have new communal spaces for people to mingle, including an open terrace on the fourth level, and a plaza, which may be used for events like flea markets or music performances.

On the third level, there will be a new 800 sq m playground, with a structure in the shape of a bird – inspired by the mosaic ones found in older public housing estates.

The mall in Tiong Bahru Road will have 155 shops on five storeys, up from 150 previously. It will also have an air-conditioned, two-storey link with shops to Central Plaza, the mall’s office tower.

So far, nearly 85 per cent of tenants have confirmed their interest in opening shop. Some are returning brands like foodcourt operator Kopitiam and IT chain Challenger, while others are new ones such as Thai restaurant Bangkok Jam.

The mall, owned by a real estate fund managed by investment manager Pramerica Investment Management Singapore, is hoping to attract more visitors as more people move into the area.

Over the next three years, Tiong Bahru will have 11 new residential developments, with about 2,800 units. For instance, Highline Residences, a condominium within walking distance of the mall, is expected to be completed by 2018.

http://www.straitstimes.com/singapore/tiong-bahru-plaza-to-reopen-next-year-after-90m-revamp