Tag Archives: Capitol Singapore

Perennial Real Estate seeks to wind up Capitol entities over deadlock with Pontiac Land

PERENNIAL Real Estate Holdings (PREHL) has filed applications for the Singapore High Court to wind up three associated companies related to its integrated development, Capitol Singapore at City Hall, due to a deadlock with its partner.

The three firms are Capitol Investment Holdings, Capitol Retail Management and Capitol Hotel Management.

The applications were made because “the shareholders and management of the Capitol entities are in deadlock, and that their relationship has been adversely affected such that the shareholders cannot realistically continue to work together constructively,” it said in a filing to the Singapore Exchange.

PREHL said on Thursday that the shareholders were unable to agree on a number of key issues related to the project in the last few months. It did not say what these issues were.

“The prevailing state of affairs is not conducive to the business interests of the Capitol project, the Capitol entities or their respective shareholders. It is therefore necessary for the shareholders to disengage from the joint enterprise, such that the Capitol project is ultimately fully controlled by either shareholder, or by a third party buyer,” PREHL said.

The Capitol entities together hold the assets of Capitol Singapore, an integrated development at the junction of Stamford Road and North Bridge Road.

PREHL owns an effective 50 per cent stake in each of the three Capitol entities. Its chief executive officer is retail mall veteran, Pua Seck Guan.

Chesham Properties holds the remaining 50 per cent. Chesham is a member of the Kwee family’s Pontiac Land Group, a privately-held luxury property developer

All components of the integrated development – retail, theatre, hotel and residences – have received their temporary occupancy permits.

PREHL said the winding up proceedings were not expected to have any material impact on its net tangible assets or earnings per share for the current financial year ending December 31, 2016.

Perennial hints at changes afoot at Capitol Singapore

Some changes could be afoot at Capitol Singapore after it has been hit with a depressed retail environment. Landlord Perennial Real Estate on Friday (Feb 5) said it is looking at ways to help tenants.

CEO of Perennial Real Estate Holdings Pua Seck Guan, said: “The retail sector is not easy now, because a lot of retailers are faced with the problem of labour shortage and also in this volatile market.

“As a landlord, we therefore have to adopt a strategy to find the right tenant and a win-win rental structure, and some of the rentals we may have to get it on a turnover basis rather than insist on a very high base rent.”

The announcement comes as Capitol Singapore integrated development is edging closer to completion. The 157-room The Patina hotel has been completed, although it has not yet opened its doors. Meanwhile, the luxury Eden Residences expects to receive its Temporary Occupation License by end-February. The retail complex has been opening in phases since May 2015.

Concerns about Capitol’s retail tenants aside, Perennial presented a strong report card for the three months to December at a briefing on Friday, with net profit almost doubling up 93 per cent to S$41.1 million.

Property consultant, Chestertons, said Capitol could get a boost when the hotel starts operating. “One potential catalyst that might come out for Capitol’s retail centre would be the opening of Patina Hotel,” said managing director of Chestertons Donald Han.

“The Patina is almost ready to open its doors and it would welcome high-end or business tourists. So effectively, that could be a crowd puller to be able to support some of the high -end offering in Capitol. This year might potentially might see some footfall traffic. I think it might see higher occupancy settling in, as the year moves on. ”

Turning to its other Singapore properties, Perennial said it hopes to start selling office space and medical suites at TripleOne Somerset sometime in the second quarter, and it is awaiting final approval to do the same for AXA Tower.

Perennial’s other properties in Singapore include Chinatown Point and CHIJMES. The Singapore properties account for 21 per cent of the group’s total assets, behind China whichs accounts for around 73 per cent.

Source : Channel NewsAsia – 5 Feb 2016

Revamped Capitol Theatre aiming to bring new brands to market

The old Capitol Theatre has just reopened, after a billion-dollar facelift. Along with a retail mall, the development will also include residences and a hotel. Owners of Capitol said they are adopting a strategy of bringing in new-to-market brands, as tenants, to complement its theatre and lifestyle offerings.

Japanese apparel retailer, 45r, is among the new names open for business at Capitol Piazza, the retail section of Capitol. Capitol’s strategy is to source new-to-market brands and concepts, or retailers which did not previously have a presence in Singapore.

The landlord said that aside from wanting to stand out from the retail scene, working with new-to-market brands also gives it flexibility in managing its floor space.

“Some of these luxurious brands – Louis Vuitton, Gucci – they need very big space,” said Capitol’s general manager Dawn Tan. Capitol has a “very intimate size” of 130,000 square feet, she said.

“If we go for these very high-end brands, then we would only end up with maybe only a few brands within the mall. This is not what we want. So we thought there is a market out there also for these new concepts to come in and that’s why we actually focused on these new to market concepts to be in Singapore.”

Capitol plans to explore synergies between the theatre and its retail arm, using old world charm and new offerings to engage consumers and attract tenants.

“Capitol mall is pretty unique,” said Masaki Nakashim, chief operating officer of 45r. “The theatre has a lot of history. They keep all the old buildings and make new ones. This is the same as our concept. So that’s why we decided to come here.”

“The theatre is a very important marketing tool for us because it allows us to continue to bring in different kinds of patrons,” added Ms Tan. “We can actually have musicals, forums like the arbitration forum, and also parties like the post-F1 party.

“The patron profile is constantly changing and it allows Capitol to be known and marketed to different people, and it brings a constant source, a new source of customers to capitol and to the brands.”

Property analyst Chestertons said the renovated Capitol could inject new life into the Civic District, especially the stretch leading up to the Funan Mall .

“With Capitol, the Piazza, the Theatre and the two components, Patina and residential coming up, it helps to revitalize that entire area on the North Bridge Road side, towards to Funan,” said managing director of Chestertons Donald Han.

“Hopefully it could be a spur for some of the individual owners, although the majority are strata-type owners, to refurbish the area. Because that’s an important node of retail, being connected directly to the City Hall MRT station.

“If you look at the current market, it does help to serve City Hall as a more premier retail, leisure, F&B destination because what the entire area offers will be Raffles City, Marina shopping centre destination, you’ve got now a little bit more upscale, uniqueness offered by Capitol.”

Capitol has obtained more than 80 per cent of leasing commitments to date – 65 per cent of which are new-to-market brands – with the remaining tenant renovations expected to be completed by September this year.

Source : Channel NewsAsia – 16 Jul 2015