Category Archives: Singapore Retail

Prices of retail space down 0.8% in 2015: URA

Prices of retail space declined 0.8 per cent and rentals by 4.1 per cent for the whole of 2015, according to data released by the Urban Redevelopment Authority (URA) on Friday (Jan 22).

The islandwide vacancy rate of retail space rose to 7.2 per cent at the end of the fourth quarter, compared to 7 per cent at the end of the third quarter. This was a result of a 22,000sqm increase in the stock of retail space, while the amount of occupied retail space only rose 8,000sqm, said URA.

As of the fourth quarter, there was a total supply of about 808,000sqm gross floor area of office space in the pipeline, it added.

Source : Channel NewsAsia – 22 Jan 2016

Keppel Land buys stake in 112 Katong mall for S$51.4m

Keppel Land has acquired a 22.4 per cent stake in 112 Katong mall from BHG, Imagine Properties and Perennial Singapore Investment for S$51.4 million, Keppel Corp announced in a press release on Sunday (Jan 17).

The remaining 77.6 per cent stake is held by Alpha Asia Macro Trends Fund, which is managed by Alpha Investment Partners, a property fund management vehicle of Keppel Land.

Keppel Corp said the transaction is not expected to have any material impact on its net tangible assets or earnings per share for the current financial year.

CEO of Keppel Land Ang Wee Gee said the property management company will focus on strengthening 112 Katong’s positioning as a lifestyle and dining destination in the East.

Keppel Land Retail Management will be appointed as the retail manager for the mall, he added.

Separately, Keppel Corp also announced on Sunday that Keppel REIT has sold its 100 per cent stake in 77 King Street in Sydney, Australia, to a subsidiary of Invesco Asia Core Fund for S$160 million (S$160 million).

The sale price is about 40 per cent above Keppel REIT’s original purchase price of A$116 million in end-2010, and 27 per cent higher than the property’s latest valuation of A$126 million, Keppel Corp said.

Source : Channel NewsAsia – 17 Jan 2016

Retail rents down 1.2% in Q4, culminating in 5.9% full-year drop: DTZ

AVERAGE island-wide first-storey retail rentals have fallen by 1.2 per cent in Q4 2015, compared to the last quarter, to about S$30.50 per square foot (psf), DTZ data showed on Wednesday.

This is the third consecutive decline since Q2 2015.

For the whole of 2015, average first-storey rents fell at a faster pace of 5.9 per cent, compared to the slower decline of 0.3 per cent in 2014.

“Much of the decline in 2015 was attributed to weakened consumer sentiments amid uncertain global economic conditions,” DTZ noted.

Among the various regions, rents in Orchard/Scotts Road were the most resilient. Average first-storey rents in Orchard/Scotts Road saw a gentler decline compared to the other regions, falling by one per cent quarter-on-quarter (q-o-q) and 5 per cent year-on-year (y-o-y) to S$38.05 psf in Q4 2015.

They were supported by the lack of new completions in the next four years. Only pockets of new retail spaces will be added via renovations and other mixed-use projects, it said.

Average first-storey rents in the suburban areas were also quite resilient, dipping by 1.2 per cent q-o-q and 5.7 per cent y-o-y to S$30.70 psf in the same period.

In contrast, average first-storey rents in the other city areas registered a greater decline of 1.4 per cent q-o-q and 6.9 per cent y-o-y to about S$21.80 psf in Q4. This was largely due to the area’s dependence on the weekday office crowd for sales volume, DTZ added.

The Urban Redevelopment Authority is expected to release full fourth-quarter price and rental data for retail space on Jan 22, 2016.

BT – 13 Jan 2016

Embattled Marina Square in legal tussle with ex-tenant

Hit by a spate of problems in recent years — with major tenants leaving, rats scampering around its premises and slow footfall — Marina Square has now found itself embroiled in a new battle, as a legal tussle brews between the mall and a former tenant.

Court papers obtained by TODAY showed that the mall’s operator, Marina Centre Holdings, has launched legal proceedings against Caerus Holding, which manages confectionery Lady M, a former tenant.

In a writ of summons served by its lawyers on Oct 15 last year, the mall claims Caerus Holding had breached the terms of its lease.

Lady M, which occupied a unit on the second floor, had stopped operations on Jan 29 last year, about halfway into its three-year lease, which was to have expired in July this year. The mall then terminated its lease on Mar 23.

Marina Centre Holdings is now seeking S$62,645.33 in compensation from Caerus Holding for, among other things, rent owed from Jan 1 to March 23 last year. It is also seeking damages totalling S$211,149.97 for the losses it claims it suffered, including loss of rent, from Lady M’s exit. The unit has not been taken up since the lease was terminated.

Citing the presence of rats in the mall, lawyers representing Caerus Holding, in their defence filed on Nov 11, argued that the management’s failure to ensure its common areas were “free from rodent activity” and “properly sealed, (in) good order and/or maintained” — causing rats to infiltrate Lady M’s premises — made it impossible for the confectionery to “carry out its business”.

Its franchisor had also advised the business to suspend operations there “to preserve the brand name and image of Lady M”. The firm claimed that it had informed the mall about rat activity on its premises and in the mall since December 2014.

Caerus Holding believed the rodent problem came about because of construction work on the mall’s new wing. For these reasons, among others, it is counter-claiming damages from Marina Centre Holdings, noting that it “suffered loss and damage” as a consequence.

In its Dec 9 reply and defence to this counter-claim, Marina Centre Holdings said rats found on Lady M’s premises were the fault of the tenant, not the mall. It noted that a clause in the lease stated that the tenant shall not hold the mall responsible for “any interference and/or inconvenience” arising from construction-related work.

Last January, news emerged that rodent activity had been detected in the false ceilings of 14 of the mall’s food-and-beverage establishments and at one of its bin centres. The National Environment Agency had conducted inspections after a rat was found in a tray of cooked vegetables at Hotpot Culture, a restaurant at the mall.

When contacted by TODAY, a Marina Square spokesperson said: “Under the tenancy agreement, tenants have no legal grounds to take action against Marina Square, as the landlord has taken all reasonable measures on this matter. We decline comments on any legal matters. Any legal disputes will be presented and substantiated with facts and we leave it to the courts to decide.”

FEWER VISITORS AMID RISING COMPETITION

For the current tenants, they have noticed the slow human traffic at the mall, with some attributing it to the departure of cinema operator Golden Village and bowling alley SuperBowl in 2014.

“There’s no longer a cinema (here), no bowling alley… so people are just not coming anymore,” St Marc Cafe area operations manager Mohamad Ridhwan, 28, said. He added that office workers were also finding the nearby Suntec City mall, which underwent a S$410-million facelift and relaunched last October, “more convenient”.

Manhattan Fish Market’s 34-year-old manager, who gave his name as Mr Raymond, said the fall-out from the rodent problems may have contributed to dampening overall customer traffic.

Seoul Yummy has seen its business dip about half since last March, its outlet manager Airene Santos, 26, said, and Bangkok Jam restaurant manager Francis Ng, 29, said the eatery has seen a 50- to 70-per cent fall in business daily, compared with January 2014.

When TODAY visited Marina Square at lunchtime last Friday, some restaurants were operating at less than half the capacity, with Seoul Yummy filling just eight of its 35 tables and Japanese restaurant Sakae Sushi having just four of its 19 tables occupied.

Addressing this matter, Marina Square’s spokesperson said that the retail sector is facing challenges from “the growth of e-commerce and competition”. To woo patrons and widen the range of offerings, it has held promotional activities and introduced new stores, such as Emporium Shokuhin, a Japanese emporium in the new wing. “These new concepts have drawn more visitors to the mall,” the spokesperson said.

There are tenants who have seen improvements. Three Bistro manager Jon Lucas, 40, noticed that visitor traffic has picked up slightly at the mall since last August. At Hotpot Culture, business has been brisk, with the restaurant running at capacity for the whole of last month.

While most tenants interviewed said their premises have been free from rat activity, Saigon Baguette owner Kok Chiang Loong, 35, claimed that the problem remains even though it had been “reduced significantly”.

A fortnight ago, he sealed a hole with cement in the storeroom through which a pipe runs. Rat droppings were found in the restaurant’s storeroom almost daily and there are rats scuttling about at least once or twice a week, he added, showing photos of the droppings when TODAY spoke to him last Wednesday.

The mall assured that preventive measures were and would continue to be in place. “Pest control is an ongoing process and we continue our vigilant pest control programme with our tenants,” its spokesperson said.

Source : Channel NewsAsia – 11 Jan 2016

Waterway Point in Punggol to open on Jan 18

Waterway Point in Punggol will open on Jan 18, the mall confirmed on Facebook.

Frasers Centrepoint Malls had announced in August that 90 per cent of the retail space in the mall has been tenanted. Waterway Point will have four levels of indoor shopping, leisure and alfresco dining spaces, with a view of Punggol Waterway.

Among its key tenants are a 24-hour FairPrice Finest supermarket that will take up nearly 30,000 sq ft of space, a 1,500-seat Shaw Theatres, as well as a 7,335 sq ft Times Bookstore, which will be its largest outlet in Singapore.

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 – 23 Dec 2015

Compass Point to be renamed 1 Sengkang Mall

Compass Point will have a new name when it re-opens with a new look next year. The shopping centre said on its Facebook page on Tuesday (Dec 22) that the name 1 Sengkang Mall has been approved by Government authorities.

In the Facebook post, Compass Point said the mall was renamed to Sengkang Mall before updating the post and changing it to “1 Sengkang Mall” at about 10am on Wednesday.

It also announced the winner of the naming contest, who walks away with a S$1,000 cash prize. However, many on Facebook were unimpressed by the choice of the name and urged its owners to stick with Compass Point. Some called the new name “simplistic” and “boring”, or even something a 3- to 4-year-old could come up with.

The mall had narrowed down its list of suggested names to eight choices. The other options were: Sengkang Central Mall, One Sengkang, Sengkang Square, One Sengkang Square, Sengkang One, #1 Sengkang Square and 1SM.

The mall shut for renovations on Oct 25 and Frasers Centrepoint said it will re-open in a year “with a strong mix of retailers, more educational facilities and an increased selection of food and beverages options”. In June, anchor tenant Metro said it was moving out of the mall after being there for 12 years.

Source : Channel NewsAsia – 23 Dec 2015

Waning rents, tenant demand prompt malls’ repositioning

IN the heyday of the retail-property market, many landlords were eager to slice retail spaces into smaller units to lease out at higher rents per square foot. Now in the face of softening rents and dwindling tenant sales, some landlords are changing tack to lure back the bigger tenants they were once inclined to shoo away.

While this curating of tenant mix may lend support to mall occupancies and footfall, it will do little to reverse an anticipated fall in retail rents next year.

Projections for retail rental declines in 2016 go as far as 5 per cent, judging from consultants’ estimates. For one thing, the looming supply of retail space is worrying.

Based on the past three-year average annual net demand for retail space island-wide and assuming a similar level of space take-up ahead, it will take close to four years to absorb the upcoming new retail space, Knight Frank head of research and consultancy Alice Tan said.

“With an estimated 2.44 million sq ft of gross retail space to be completed next year, the search for retailers to fill both existing and new spaces is slated to intensify,” she said, pegging her average rent forecast in the Central Region to a 3-5 per cent drop for 2016.

Expecting up to a 3 per cent decline in retail rents island-wide next year, Chesterton Singapore’s managing director Donald Han sees the same issues of manpower crunch, lower tourist arrivals and the strong Singapore dollar as well as competition from e-commerce continuing to plague retailers next year.

While data from the Urban Redevelopment Authority showed a 2.9 per cent drop in retail rents in the Central Region (covering 22 planning areas that include the central area and fringe area, which extends to Queenstown, Geylang, Bishan and Sentosa) over the first three quarters of this year, specific baskets tracked by some consultants registered a bigger drop. DTZ’s recent report flagged a 3.7 per cent quarter-on-quarter fall to S$30.90 per sq ft in the third quarter for average prime first-storey rents island-wide, the lowest since the first quarter of 2006.

An overcapacity in retail space and weak tenant demand have prompted retail landlords to review their leasing strategy, Mr Han observed.

“In the past, it was about cutting up large valuable retail space, cutting up into smaller areas and achieving higher rents per square foot (psf). Now it’s about maintaining occupancy and preserving rents, keeping a balance in large and small retail tenant mix,” he said.

While tenants occupying large gross floor areas may pay lower rents on a psf basis (even paying single-digit dollar per square foot per month in some cases), they can drive higher footfall traffic into the mall, Mr Han pointed out.

“Some anchor tenants like commercial schools and medical centres provide ready and captive customers during the weekdays to shopping malls. Students, for instance, require F&B amenities during lesson breaks and they feed into the mall’s retail offering.”

A large tenant instead of more smaller tenants will mean less work for the landlord in terms of lease management – and the landlord does not need to provide as much space for walkways, Mr Han noted.

This is why some landlords have turned to less conventional tenants such as childcare or daycare centres and fitness centres as they are able to draw traffic to the malls.

Large tenants have sprung up in some shopping malls in the city centre, consultants noted. Among them, Raffles Medical opened a multi-disciplinary medical centre at newly renovated Shaw Centre in June and Harvey Norman just expanded its store space at Millenia Walk with the opening of its new 100,000-sq-ft flagship outlet in the mall.

More new-to-market concepts have also emerged. Top Japanese cooking school ABC Cooking Studio opened at Takashimaya in April this year, while Millenia Walk ushered in a new indoor snow sports centre, Urban Ski, in July. Knightsbridge is set to feature Singapore’s first Apple store next year.

Marina Square also welcomed Emporium Shokuhin, Singapore’s first integrated Japanese emporium that took up over 34,000 sq ft of space, in September and South Korean Pororo Park, which opened its first and largest South-east Asian character-themed indoor playground spanning 11,000 sq ft at Marina Square’s new retail wing last month. BT understands that a major commercial school is also looking at taking up some 100,000 sq ft of space at Marina Square.

With heightened competition for a limited pool of established retailers, landlords are now more open to new retail concepts which are either destination-centric or offer unique brand positioning, Ms Tan observed.

The strategy of attracting activity-driven tenants is paying off for Pontiac Land’s Millenia Walk.

“Over the past year, Millenia Walk has yielded double-digit growth for our rental reversions, and increased occupancy by over 20 per cent,” said Orphelia Huang, assistant manager for corporate communications at Pontiac Land, which is targeting above-95 per cent occupancy rate for the mall next year.

Among other things, Millenia Walk has also brought in specialised F&B offerings with the opening of Nihon Street where each Japanese food outlet already has a strong existing following, and reached out to male shoppers with new brands. “For 2016, we will continue our strategy to carefully curate our selection of tenants,” Ms Huang said.

In the varied retail landscape, there are department stores which will likely continue to consolidate in the near term amid weak retail sales, high business cost and manpower constraints, said Cushman & Wakefield research director Christine Li.

Just this year alone, Marks & Spencer vacated The Centrepoint, John Little closed its Marina Square and Tiong Bahru stores and Metro closed its outlet at Compass Point in August and will be closing its City Square Mall outlet by the end of this year. Wing Tai, which carries brands such as G2000 and Topshop in Singapore, has said it plans to close some of its retail outlets.

The challenging retail environment is keeping landlords on their toes to refresh their mall offerings.

CapitaLand recently converted Tampines Mall’s level 5 open roof to a new education hub with well-known educational centres such as Yamaha Music School, Julia Gabriel Centre, MindChamps and Stalford Learning Centre. It is also redeveloping Funan DigitaLife Mall into an integrated development.

Malls which are part of an integrated development are able to tap into ready catchments of residents, working professionals and business and leisure travellers, said CapitaLand Mall Asia head of retail management for Singapore Teresa Teow. “To serve the needs of shoppers who use our malls as one-stop lifestyle destinations, we are increasing the percentage of retail space allocated to F&B, from about 19 per cent five years ago to about 22 per cent currently.”

Similarly for Frasers Centrepoint malls, the proportion of F&B tenants has increased. At Causeway Point in Woodlands, the proportion of net lettable area of F&B was 16.3 per cent in 2010 (before upgrading), compared with the current 23.1 per cent. In other malls such as Changi City Point, the F&B proportion is even higher, said a spokesman for Frasers Centrepoint Asset Management, the manager of Frasers Centrepoint Trust.

Tan Sulian, senior director for retail at Savills Singapore, said: “Landlords who are more proactively adjusting their trade mix and tenant mix will result in better occupancies and rents because eventually they will attract better tenants, who are also more willing to pay better rents.”

BT – 21 Dec 2015

Rental gap narrowing between suburban and Orchard malls

THE rental gap between prime spaces in suburban malls and Orchard malls has been narrowing – and this trend is slated to continue into 2016.

Property consultants noted that the relative resilience of suburban malls stems from their larger local catchment and lower susceptibility to tourist spending, which has been dealt a blow from lacklustre tourist arrivals and competition from other global cities for their spending.

While the retail rental index of the Urban Redevelopment Authority (URA) for the Central Region showed a 2.9 per cent drop in retail rents over the first three quarters of this year, the Central Area marked a bigger 3 per cent drop compared to a 2.4 per cent decline in the Fringe Area.

URA’s retail rental indices do not track malls located in the far-flung areas of Jurong, Tampines and Yishun, though rental data by unit size, floor level and district is available on its website.

Data from consultancy firm Savills shows that prime-facing spaces in Orchard malls have fallen by a bigger 4 per cent over the first three quarters of this year, compared to 2.9 per cent in suburban malls.

“On the whole, we still haven’t seen any concrete plan to arrest the pilferage of sales from online retailers who are waging a guerrilla war against sitting targets,” said Savills research head Alan Cheong.

He expects rents in suburban malls to dip by up to 2 per cent and those in Orchard malls to fall by a bigger 3-5 per cent next year.

Based on Knight Frank’s computations, the rental premium of prime retail spaces of Orchard Road malls over suburban malls has been steadily shrinking over the last three years. The average prime rent of Orchard Road malls was 1.09 times of that in suburban malls in the last nine months this year, down from 1.12 times and 1.13 times in 2014 and 2013 respectively.

“This demonstrates the higher resilience of suburban mall prime space rents compared to Orchard Road’s,” said Knight Frank head of consultancy and research Alice Tan. “Nonetheless, the limited availability and limited upcoming supply of new retail spaces in Orchard Road should limit rental declines for Singapore’s prime shopping belt going forward, keeping rental premium between Orchard Road and suburban prime retail spaces at similar levels for 2016.”

Some Orchard Road malls have found it hard to gain traction. Wheelock Properties’ Scotts Square has seen many of its tenants come and go since its opening in 2012. Shaw Centre has similarly failed to ramp up its occupancy and pull in customers since its revamp last November.

Far East Organization’s Orchard Central, now 85 per cent occupied, will be undergoing a revamp until Q3 2016, during which 17 per cent of its tenants will have to close or relocate by Dec 31.

Cushman & Wakefield research director Christine Li noted that popular retail brands previously present only in Orchard Road have made their way into suburban malls, hence diluting retail sales in Orchard malls.

Looking at prime-facing retail units on ground floor of not more than 3,000 square feet, Ms Li is projecting a 3-3.5 per cent drop in rents in Orchard Road, a 4 per cent fall in the city-fringe, and stable rents for suburban malls next year.

A spokesman for Frasers Centrepoint Asset Management, the manager of Frasers Centrepoint Trust (FCT) which owns a number of suburban malls, stressed that suburban malls have very localised catchment, roughly 3-5km radius in the primary catchment and slightly further afield if the mall is easily accessible by MRT or bus.

“We think the outlook for suburban malls should remain stable in general, as consumption in this sector are mostly necessity spending,” he said.

FCT finished the financial year ended Sept 30 with an average rental reversion of 6.3 per cent. Its manager is further tweaking tenant mix at Changi City Point and Bedok Point, where occupancies were 91.1 per cent and 84.2 per cent respectively as at Sept 30. Its Northpoint shopping centre in Yishun is being expanded as part of the integrated Northpoint City project.

“In most instances, the challenge is not so much in finding a tenant as there is always interest in space in suburban enclosed malls. It is more a question of finding the correct tenant that is also willing to pay the target rent,” FCT manager’s spokesman said. “Occupancy-wise, we should be able to maintain our current level or improve slightly over our last financial year.”

But not all suburban malls are faring well too. Consultants note that there is greater competition in Jurong East where there are five malls in the same catchment – namely JCube, JEM, WestGate, Big Box and IMM Building.

“While household and office population there is on the rise, the majority of homes and offices are still under construction and the newly completed malls have injected more supply at a faster rate than demand,” said Chesterton Singapore managing director Donald Han.

Woes of JCube arose with the proliferation of malls in the Jurong East regional centre in recent years. Since Jem and Westgate opened across the road in 2013, JCube’s occupancy rate has been on a slide since end-2013 from 100 per cent to 83.7 per cent as of Sept 30 this year. Though it has undergone several rounds of mall repositioning, one industry player felt that the mall has not yet found its “identity”.

“Both JCube and IMM are undergoing a series of asset enhancement initiatives. We think the malls here may underperform other areas where there are less mall competitors such as Junction 8, Causeway Point or Bedok Mall,” Mr Han said.

CapitaLand’s Tampines Mall and Junction 8 marked full occupancy as at Sept 30 and some asset enhancement works are ongoing for Tampines Mall.

When asked about its malls in Jurong Gateway, CapitaLand Mall Asia head of retail management for Singapore Teresa Teow explained that the three malls are positioned differently to complement each other, with Westgate serving as a premier lifestyle and family mall, IMM Building as Singapore’s largest outlet mall, and JCube being a leisure and entertainment hub in the west that houses Singapore’s only Olympic-size ice rink.

JCube recently added a trendy retail zone, J.Avenue, that houses 100 shops offering chic, affordable merchandise. “We continually reinvent our malls to ensure that they stay relevant and attractive to shoppers,” Ms Teow added.

Large landlords such as CapitaLand and Frasers Centrepoint are also embracing technology, making their rewards programme available via mobile apps.

CapitaLand’s Capitastar goes further to glean the shopper preferences of some 800,000 Capitastar members in Singapore from the aggregated data, which enables CapitaLand to work with retailers to push out targeted retail offerings through the Capitastar mobile app.

Consultants note that malls which are connected to an MRT tend to do well. Size matters too, Mr Han added, with larger malls of more than 200,000 sq ft in net lettable area able to enjoy economies of scale and provide a variety of tenant-mix offering to consumers.

Ms Tan noted that while landlords are now more receptive to negotiate rentals with established retailers, the current structure of base rents vis-a-vis variable rents has not changed much, with limited room for adjustment.

BT – 21 Dec 2015

CDL and Alpha Investment Partners in S$1.1 billion Singapore office venture

Real estate giant City Developments (CityDev) will inject three of its office properties into an investment platform, in a move that will free up hundreds of millions of dollars in funds for new investments.

In a statement on Tuesday (Dec 15), CityDev said the three properties are Central Mall (Office Tower), 7 & 9 Tampines Grande and Manulife Centre.

The properties – valued at around S$1.1 billion – will be sold to a joint office investment platform co-owned by CityDev and Alpha Asia Macro Trends Fund II (AAMTF II), which is managed by Keppel’s Alpha Investment Partners.

CityDev Executive Chairman Kwek Leng Beng said: “Over the past two years, we have been advancing our two-pronged diversification strategy of developing new overseas and investment platforms. By building on the success of our first PPS transaction last year, this new initiative allows us to recycle capital for our growth plans.”

CityDev Chief Executive Officer Grant Kelley said: “Fundamentally the intent with the use of proceeds is to recycle capital for our growth plans both domestic and international. Last week we announced the closing of our first Australian investment in several years. In addition to that in the past month we’ve closed two major deals to the west of London.”

“We’ve been fairly clear in our investment objectives which are to find quality assets in five key markets, Australia, China, Japan, the UK and US, which makes sense for our shareholders on a risk adjusted basis,” he added.

PPS is an acronym for Profit Participation Securities, a sort of investment structure that allows a firm to sell future earnings from its properties while retaining control.

According to CityDev, the total aggregated value of the securities issued in the PPS transaction is S$333.5 million, comprising S$133.3 million of securities subscribed by a wholly-owned subsidiary of CityDev and a contribution of S$200.2 million by AAMTF II.

DBS and Oversea-Chinese Banking Corporation (OCBC) will provide S$750.1 million in senior loan facilities.

CityDev did not say how much new funding it will raise from this transaction. It will, however, continue to manage the three office properties, which currently have a strong occupancy of 98 per cent.

The PPS announced by CityDev on Tuesday is the firm’s second. Last year, it partnered with Blackstone’s Tactical Opportunities Fund and CIMB Bank for a S$1.5 billion PPS that invests in the cash flows of its upscale properties in Sentosa Cove, called the Quayside Collection.

M&G Real Estate buys remaining stake in Compass Point

Real estate fund manager M&G Real Estate will become the sole owner of Compass Point mall in Sengkang, after entering into a deed to buy the remaining 18.99 per cent of shares it does not already own.

M&G said on Wednesday (Dec 16) it will be buying the shares from FCL Centrepoint, a subsidiary of Frasers Centrepoint. The transaction is expected to be completed in February next year, M&G added. FCL Centrepoint will cease management of Compass Point once the transaction is completed.

The mall, located in the heart of Sengkang New Town Centre, is closed for refurbishment and is expected to reopen next year under a new name and new management, M&G said.

The revamped mall is expected to have new shops, more food outlets and an expanded library which will occupy two levels in the building, the company said.

Source : Channel NewsAsia – 16 Dec 2015