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Hike in rentals at revamped Northpoint

Posted on 13 Mar 2010 | Comments Off

FRASERS Centrepoint Trust’s (FCT) Northpoint mall has seen a 20 per cent hike in average rentals and a 70 per cent climb in shopper traffic after it was expanded and revamped.

EXPANDED
With the addition of a $165 million new wing and a $38.6 million asset enhancement initiative, net lettable area of Northpoint mall is now 235,000 sq ft, up from 149,200 sq ft

The mall, which is located right next to Yishun MRT station, increased its net lettable area by more than 50 per cent with the addition of a $165 million new wing and a $38.6 million asset enhancement initiative. The new NLA is 235,000 sq ft, up from 149,200 sq ft.

With all the changes, the number of shoppers who visit the mall every month has jumped to 2.4 million, from 1.4-1.6 million three-and-a-half years ago, said Wendy Low, general manager of Frasers Centrepoint Malls. She was speaking to reporters at the ‘new’ Northpoint’s official opening ceremony yesterday.

The average rental fetched by the landlord has also gone up by about 20 per cent on a per square foot (psf) basis. Rents are understood to be in the region of $12-14 psf. ‘The enhancement is part of FCT’s strategic initiative in unlocking values in existing assets,’ said Mrs Low.

From 90 shops previously, Northpoint has almost doubled the number of shops to 168. Occupancy stands at close to 100 per cent.

Next in line for asset enhancement is Causeway Point at Woodlands. Work at the 419,000 sq ft mall could begin sometime later this year. The $710 million Causeway Point is the largest mall in FCT’s portfolio and draws the most visitors on a yearly basis.

FCT, which is part of the Fraser and Neave group, listed in 2006 with three malls in its portfolio – Causeway Point, Northpoint and Anchorpoint.

Earlier this year, it bought another two properties – the newly built extension to Northpoint and YewTee Point in Choa Chu Kang – for $290 million from parent company Frasers Centrepoint, the property arm of Fraser and Neave.

FCT shares lost one cent to close at $1.34 yesterday.

Source : Business Times – 13 Mar 2010

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Posted in Office / Retail / Industrial

Tagged Northpoint, Retail Rental, Retail Space, Singapore Retail

Sun Plaza goes on the market for over $300m

Posted on 11 Mar 2010 | Comments Off

Investment buzz in shopping centre scene; Alpha takes stake in Katong Mall

THE shopping centre investment scene seems to be abuzz. At least one property is being put on the market officially.

Sun Plaza, located between Sembawang MRT station and bus interchange, will be marketed through an expression of interest exercise.

The asking price for the 11-year-old mall, owned by Heeton Holdings and Koh Brothers, is understood to be in excess of $300 million or $2,000 per square foot (psf) of net lettable area.

The mall has seven levels, two of which are basement floors, and offers scope for asset enhancement work and repositioning to boost yields.

Meanwhile, over in the Katong area, a fund managed by Alpha Investment Partners is said to have taken a majority stake, believed to be around 70 per cent, in the consortium that bought Katong Mall late last year for $247.6 million.

The consortium, originated by former CapitaMalls Trust chief executive Pua Seck Guan, also includes China-based retailer Beijing Hualian Group and BreadTalk Group.

Katong Mall, located at the corner of East Coast and Joo Chiat roads, will be revamped and its net lettable area boosted by about 20 per cent.

Alpha, Keppel Land’s fund management unit, has also been active in other segments of the property market. Another of its funds controls 90 per cent of a company that owns the newly spruced-up office block at Cecil Street known as The Spazio (formerly Dapenso Building).

In Shanghai, Alpha is expected to bag an upscale service apartment block from Morgan Stanley Real Estate in a transaction estimated at about 900 million yuan (S$184 million).

Over in Singapore’s Sembawang area, CB Richard Ellis is handling the expression of interest exercise for Sun Plaza.

The property has been built to its maximum plot ratio; hence, it is being pitched for its asset enhancement potential.

For instance, a community library on the third level could be moved to a higher level with the library space decanted to create higher-value retail / restaurant space, for example, in basement 1.

As well, a cineplex on the fourth and fifth levels that was formerly operated by Eng Wah has been left vacant, presenting an opportunity for a new investor to reconfigure the space into smaller lots for lease to higher-paying tenants.

Sun Plaza’s retail area is spread across six levels, including basement 1. Basement 2 is occupied by 260 carpark lots.

Currently, the average gross monthly rental for the mall is said to be about $8 per square foot but market watchers reckon that through asset enhancement works and improving tenant mix, it might be possible to raise this figure to $12-14 psf.

Sun Plaza is on a site with a remaining lease term of about 85 years. Tenants include NTUC FairPrice, Yamaha Music School, Taka Jewellery and Kopitiam.

Above Sun Plaza are 76 apartments which were sold by the developers years ago.

Source : Business Times – 11 Mar 2010