International property firm Lend Lease is hoping to expand its footprint in Asia.
The company said its three-month old mall, 313@Somerset in Singapore, has done better than expected, and the firm is eyeing more investment opportunities in the city state over the next 12 months.
2010 started off on a high note for 313@Somerset, one of three new malls along Orchard Road.
The other two malls are CapitaLand’s ION Orchard and Far East Organisation’s Orchard Central.
Since opening in December last year, Lend Lease said 313@Somerset has attracted an average of three million people each month.
Responding to Channel NewsAsia, CapitaLand said its retail property ION Orchard sees a customer traffic of over 4.5 million people a month on average.
ION Orchard opened last July and it has a retail space of 640,000 square feet – more than twice the size of 313@Somerset, which has a space of 294,000 square feet.
With more shopping options springing up along Orchard Road and the two integrated resorts, competition in the retail sector is expected to intensify.
Lend Lease said it is studying ways to reach out to younger shoppers.
“We are in the mid market and our demographic of shoppers now is 20 per cent tourists and 80 per cent locals,” said Ooi Eng Peng, chief executive officer of Investment Management at Lend Lease.
“I think with the IRs, we expect more tourists to come to Singapore, more tourists will come to Orchard Road, and we see it as a positive move.”
Without revealing details, Lend Lease said it is currently looking at a couple of mixed-sites under the government’s Land Sales programme, on top of efforts to expand in markets like China and Malaysia.
And retailers like Catalist-listed AFOR hopes to tap the landlord’s network to expand overseas.
The company runs nine epi-centre stores in Singapore and Malaysia currently, and 10 more stores could be added in the region within the year.
“Some of the other countries we are looking at are in South East Asia and in China,” said Jimmy Fong, chief executive officer of AFOR Limited. “We are looking at hiring at least 50 to 100 people over the next 12 to 24 months.”
Mr Fong said that total sales recorded in 2009 hit S$65 million, and this is expected to grow to over S$80 million in 2010.
While retailers seek to expand in anticipation of better times, some analyses say landlords could up rentals by three to four per cent this year, on the back of improving consumer sentiment and economic upturn.
On average, prime retail space along Orchard Road goes for about S$38 per square foot.
Source : Channel NewsAsia – 3 Mar 2010
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