Tag Archives: Suntec City

Suntec City officially reopens after S$410m revamp

Suntec City officially reopened on Thursday (Oct 22) following a S$410 million enhancement.

In a press release, ARA Trust Management (Suntec) Limited, the manager of Suntec REIT, said enhancement works began in June 2012 and were completed in June this year.

The works involved decanting low-yielding spaces and converting levels one and two of the Suntec Singapore Convention & Exhibition Centre for retail use. The retail footprint now covers close to a million square feet.

“Today marks an important milestone for Suntec City as we celebrate its official opening,” said Mr Yeo See Kiat, chief executive officer of ARA. “Through this transformation, Suntec City is now a more vibrant and exciting destination with new retail offerings and experiences for everyone.”

The event was attended by Minister for Social and Family Development Tan Chuan-Jin. To mark the occasion, Suntec REIT chairman Chew Gek Khim presented a cheque donation of S$200,000 towards President’s Challenge 2015 beneficiaries.

Source : Channel NewsAsia – 23 Oct 2015

Suntec hopes makeover brings new lease of life

The managers of Suntec City are optimistic that the mixed-use development will be well-positioned for its next phase of growth once it completes a makeover that will strengthen the fashion, entertainment and food & beverage offerings at its mall.

This will create a better mix of tenants that will attract more foot traffic and help the development unlock new business value through higher rental income, said Ms Susan Sim, Deputy Chief Executive of ARA Trust Management (Suntec) Limited, which manages the Suntec Real Estate Investment Trust.

“Part of it is about rightsizing — we’ve cut down the space for a huge hypermarket to open up more areas for popular fashion brands, which we couldn’t accommodate in the past,” Ms Sim said.

“We are also doubling our space for F&B to create a more diverse offering that will cater to more than just the office catchment we have.”

Ms Sim was speaking to TODAY ahead of an event later today marking the completion of the first phase of the makeover process. The S$410 million project was announced in 2011 just as the 17-year-old development seemed to be falling out of shoppers’ favour: Analysts have said Suntec is less accessible to pedestrian and tourism traffic compared to newer developments in the Orchard Road shopping belt, and the annual road closures for the Formula 1 Grand Prix have created further challenges.

But Suntec City — which comprises a mall and five office towers, and is linked to the nearby Suntec Singapore International Convention and Exhibition Centre — was by no means struggling, Ms Sim said, and the makeover, which will be completed next year, was not a rescue plan.

“Suntec City’s office and mall occupancy rate is always above 95 per cent, our mall attracts more than two million foot traffic per month, and the convention centre brings in seven million visitors per year,” she said.

“So the Asset Enhancement Initiative (AEI) was not announced to fix any problems. It’s more a self-push to modernise our hardware and ensure our market relevance. And as our tenant mix grows stronger, we will further enhance our existing competitive edge — which is the prime location that we have in Marina Bay, and a strong accessibility that two MRT stations give us,” Ms Sim said.

The makeover may reward Suntec City at least in the near term as the “newness” of the revamped mall will allow it to extract higher rents, said Mr Alan Cheong, Savills’ senior director for research and consultancy.

“But a retail operator is unlikely to fail anyway in Singapore, where the business is under-supplied as our population continues to grow. That’s why over the past decade the retail space per capita has shrunk from 8 square feet to about 7 square feet,” Mr Cheong said.

“So Suntec City will have no problem with occupancy and rental. But there will be a lot of uncertainties ahead on whether it can sustain its foot traffic in the long term as new malls continue to emerge in the area.”

Meanwhile, to tap the potential appeal arising from the revamp, new shops and restaurants have already opened near the famous Fountain of Wealth.

One of them is Ya Kun, which was relocated as part of the makeover process. Group director for branding and market development Jesher Loi is bullish about Suntec’s prospects.

“We are excited to be part of the enhancement project,” he told TODAY. “Already the lunch crowd here is quite substantial, so we look forward to serving the office catchment during weekdays and a growing number of weekend shoppers that the revamped mall is bound to attract.”

Source : Today – 12 Sep 2013

Suntec City hopes to lure shoppers back to Marina Bay area

The S$410 million remake of Suntec City is starting to take shape — Phase 1 of the makeover was completed in June.

Susan Sim, deputy CEO of ARA Trust Management (Suntec) Limited, said: “We are 100 per cent occupied on Phase 1, and most of the tenants have already started operations. Phase 2 as of June, we are 70 per cent pre-committed and we are on target for Phase 2, which is going to be ready by early next year.”

Some challenges faced by Suntec City remain. Analysts said its proximity to the Formula One track deters shoppers for several days a year. They also point out, its not as accessible to pedestrian and tourism traffic compared to the Orchard Road shopping belt.

Still, the mall operator said it aims to attract shoppers with its new lifestyle and shopping concept.

Analysts said that the complex will need to give customers plenty of reasons to go out of their way to visit the mall, and stay there.

Current regeneration works in the area as well as improved public transportation links may help.

Chua Yang Liang, head of research for South East Asia and Singapore at Jones Lang LaSalle, said: “You see the new train lines coming in, and the assets — the physical assets themselves — some of the owners are going through refurbishment.

“Suntec, Marina Square — I look at that neighbourhood quite positively, especially with new projects coming in like South Beach. All that will re-anchor the neighbourhood as potentially a new destination for shopping.”

Meanwhile. analysts said the Marina Bay area — and Suntec City in particular — has one key advantage.

The office buildings surrounding Suntec City mall are almost 100 per cent occupied, and house between 15,000 to 20,000 office workers. This captive market is currently one of the mall’s strongest assets.

Source : Channel NewsAsia – 20 Aug 2013

Suntec City to undergo S$410m revamp

Suntec Real Estate Investment Trust (Suntec REIT) has announced a S$410 million asset enhancement initiative (AEI) for its flagship asset, Suntec City.

The AEI is scheduled to start in mid-2012, and will comprise a S$230 million capital expenditure in remaking Suntec City Mall and a further S$180 million on Suntec Singapore International Convention and Exhibition Centre (Suntec Singapore).

Suntec REIT holds an effective interest of 60.8 per cent in Suntec City. On completion in mid-2015, the development will offer almost 1 million sq ft of retail lettable space.

In a statement released on Monday, the REIT manager said Suntec City Mall’s net property income is expected to increase by 33 per cent or S$23 million. This would represent a 10.1 per cent return on investment for unit holders and an 84 per cent increase in capital value over capital expenditure.

Mr Yeo See Kiat, Chief Executive Officer of ARA Trust Management (Suntec) Ltd, which manages Suntec REIT, said: “During the execution of the AEI works, we would use part of the sales proceeds from Chijmes to mitigate the temporary dip in DPU.”

Last week, Suntec REIT announced that it entered into a property sale agreement with PRE 8 Investments Pte Ltd for the sale of Chijmes at a price of S$177 million or S$2,218 psf on net lettable area.

Source : Channel NewsAsia – 31 Oct 2011