Tag Archives: Singapore Office

OUE plans to invest in 2 retail malls in CBD

Developer Overseas Union Enterprise (OUE) is set to invest in excess of S$140 million on two retail mall projects in the central business district.

Among the plans, OUE will be developing a five-storey retail mall at the existing DBS Building at Shenton Way, according to a source close to the matter.

Built in 1975, DBS Building at Shenton Way will soon be home to a new shopping mall, spanning some 170,000 square feet.

According to a source familiar with the plans, OUE is expected to spend over S$100 million to build the new mall.

It is slated to open in mid-2014, and the mall will offer retail and F&B options as well as a supermarket.

Analysts said a retail development will support an increasing residential population in the downtown area.

Donald Han, special advisor, HSR, said: “On the size of 170,000 (square feet) you would probably expect rents on average of about S$13 – 16 per square foot. Because this is still a new market place, it certainly has more upturn, upside in the next two to three years especially when most of the residential and hotel components are fully in place.”

OUE acquired DBS Building in 2010 for about S$871 million. The podium level will be converted to a shopping mall, but it appears that the developer is keeping the two office towers and it is currently looking for tenants.

Existing anchor tenant DBS Bank is expected to move out of both office towers by year-end.

And it is likely that OUE could see some rental upside when it leases the office space to new tenants.

Apart from the developments along Shenton Way, Channel NewsAsia understands that OUE will also refurbish the shopping mall at One Raffles Place.

Renovation work could start at the end of the year and it is expected to cost over S$40 million.

Source : Channel NewsAsia – 30 Jul 2012





New shopping mall to be built in Jurong East

Property group CapitaLand and two of its subsidiaries CapitaMalls Asia and CapitaMall Trust Management will build a S$1.5 billion retail and office property on their newly acquired land site in Jurong Gateway.

They said the 25-storey property will complement offerings from their nearby malls IMM and JCube.

The White site was acquired for S$969 million or S$1,012 per square foot per plot ratio, based on a plot ratio of 4.9.

The site is the second one to be released as part of the development of Jurong into a work-live-play hub in the West.

The first site was acquired by Australian developers Lend Lease for S$748.8 million in June last year.

Lend Lease is building a mixed-use development on the site.

The firms said the property’s retail and office components will ride on retail rental growth, as well as the development of the surrounding Jurong Lake District.

The 957,780 square feet retail and office property would be built right beside Jurong MRT Station.

The shopping mall component of the property is five-storeys high and is expected to open by December 2013.

The mixed-use property lies between IMM Building and JCube – which are also developed by CapitaLand’s retail and trust units.

CapitaMall Trust Management chief executive officer Simon Ho said: “We think there is still room for retail in Jurong East.

“We already operate IMM and JCube in this area but we find that another mall will be useful to serve the one million population catchment in Jurong, Clementi, Bukit Batok and so on”.

Together with IMM Building and the upcoming JCube, there will be a total of one million square feet of net lettable area in the Jurong Gateway area, offered by CapitaLand’s retail and trust units.

The project is also in the heart of the Jurong Lake District, slated to be a new regional hub in the west of Singapore.

The Jurong Gateway area is also about 2.5 times larger than the Tampines Regional Centre.

Analysts said Jurong Gateway holds much potential for retail malls.

Chesterton Suntec International head of research and consultancy Colin Tan said: “Its main attraction is the interchange… at the crossroads of MRT lines.

“That alone should ensure there will be crowds there. It will have enough shopping and commercial space to be an attraction in itself”.

CapitaMall Trust Management said its new development should ride on steady retail rental growth.

The project’s retail rentals are expected at S$16 to S$18 per square foot.

It will target mini-anchor and specialty tenants, in order to complement Lend Lease and the upcoming JCube’s anchor tenants.

“For the first quarter, CapitaMall Trust renewed about 145 leases and we got a 7.5 per cent increase over the previous rent. That’s pretty decent and that’s leases spread out through surbuban malls and city malls,” Mr Ho said.

The project’s 20 floors of office space should be fully operational by end-2014.

By then, its developers said its office rentals should reach S$8 per square foot.

CapitaLand’s retail and trust units said the project’s yields, which are based on both office and retail rentals, should come up to about six per cent annually once it is up and running.

Source : CNA – 1 Jun 2011