Keppel Group has put 112 Katong, a mall in Katong/Joo Chiat area, up for sale, expecting offers around $500M. The mall, which is on a site balance of 61 years, has NLA of 207,160 sqft of retail space, plus 300 plus car park lots in the basement. The mall was first put in the market in April, with an asking price of $559M. The occupancy rate is 84%, with some units left vacant for possible refurbishment.
Category Archives: shopping
Citimac Industrial Complex up for enbloc sale again
The freehold development in the heart of Tai Seng industrial and commercial hub is up for sale again. The 110-unit industrial property of 1.3 ha size in MacPherson Road, Citimac Industrial Complex, has been put up for collective sale with a price tag of at least $430 million this time.
The eventual buyer would have to pay an additional $99 million in development charge (DC) for intensifying the land use — translating to a cost of $1,081 psf per plot ratio.
The redevelopment site is zoned “Business 1-White”, with a gross plot ratio of 3.5 under the URA Master Plan 2014. It can potentially yield a maximum gross floor area of 489,262 sq ft, of which at least 349,473 sq ft has to be for Business 1 or light industrial use, with the remaining for “white” use, which includes retail or commercial uses.
The white component is ideal for retail and F&B, such as cafes, restaurants and foodcourts, to tap on the growing catchment of workers in this up-and-coming F&B cluster, as well as residents in the neighbourhood,
BreadTalk Group, Sakae Holdings, Charles & Keith, Tee Yih Jia Group, Malaysia Dairy Industries and Lian Beng Group are among the many big names in the vicinity.
In February Mapletree opened its mixed-use development 18 Tai Seng, which boasts tenants such as Liao Fan Hawker Chan, Japanese Soba Noodles Tsuta and Tim Ho Wan.
Singpost Centre mall to be managed by Capitaland
The mall in the new SingPost Centre – near Paya Lebar MRT station – spans five floors and has a net lettable area of about 175,000 sq ft. The SingPost Centre will house the new General Post Office and Philatelic Store and feature tenants, including supermart NTUC FairPrice, Golden Village cinemas and a Kopitiam foodcourt. SingPost said the 300 sq m General Post Office will feature traditional counter service and technology-enabled innovations such as POPStations and eSAM machines. There will also be a heritage corner where customers can learn about the postal service firm’s 150 years of history.
CapitaLand Mall Asia is the mall manager, signing its first third-party mall management contract in Singapore, boosting CapitaLand’s mall network here to 20. The long-term contract with Singapore Post will see CapitaLand managing the upcoming mall at the new SingPost Centre in Paya Lebar – slated to open in the second half of this year.
The SingPost Centre mall will augment its presence in eastern Singapore, where it currently owns and manages two malls – Tampines Mall and Bedok Mall. It is also involved in a joint venture to develop the Jewel Changi Airport which is due to be ready in early 2019.
With CapitaLand as the retail mall manager, SingPost will be able to focus its attention on our core operations of postal services and e-commerce logistics. Under the property management agreement, CapitaLand will oversee the period leading up to the opening of the mall, its marketing and promotion as well as leasing and facilities management.
New Paya Lebar Condo @ Katong Fringe ready for sale
The Park Place Residences at Paya Lebar Quarter (PLQ), a 429-unit development which will be the third condo project to hit the market this year after The Clement Canopy in Clementi and Grandeur Park Residences in Tanah Merah, will open for a preview tomorrow.
The $3.2 billion PLQ – being jointly developed by Lendlease and Abu Dhabi Investment Authority – will feature a mall, three office towers and three residential blocks. Developer Lendlease yesterday said it is confident there will be a good take-up for the 99-year leasehold Paya Lebar project.
Lendlease plans to sell 171 apartments, or 40 per cent of the total units at Park Place Residences, as part of its first release. Park Place Residences will have 117 one-bedroom units, between 480 sq ft and 580 sq ft in size, with prices starting at $780,000. Meanwhile, the price for 234 two-bedroom apartments, between 650 sq ft and 900 sq ft, will start from $1 million. The remaining 78 three-bedroom units, between 1,080 sq ft and 1,350 sq ft, will be priced from $1.6 million.
The prices should work out to an average of about $1,560 psf to $1,610 psf. This would make Park Place Residences the priciest condo project out this year. Average prices at both The Clement Canopy and Grandeur Park Residences are below $1,400 psf. Park Place Residences will be launched for sale on March 25.
Concurrently the MOF has just announced a set of updated initiatives for property. It includes changes to SSD among others — http://www.mof.gov.sg/news-reader/articleid/1795/parentid/59/year/2017?category=Press%20Release
Katong Shopping Centre may go enbloc again
Katong Shopping Centre (KSC) in Katong/East Coast area is making a third time try at the collective sale market, with a asking price of about $630m. More than 80% of owners have agreed to the proposed sale. CDL owns 60 units and 323 carpark spaces in the mall. KSC is built in 1973, at a cost of $20m to CDL.
The psf price of %2248 is seen high in today’s market. The 86,924 sqft site with plot ratio of 3.0 is zoned for commercial and residential use. The current gross floor area (GFA) is 280,203sqft. The agent responsible for the collective sale, Cushman & Wakefield, is applying to URA for outline permission for full commercial site.
The venue is also a prime ideal for additions and alterations to recreate a landmark mall in Katong. A potential 32K sqft space may be set aside for medical suites. The site is within 500-600m of the future MRT stations of Marine Parade and Amber. The tender is due 8 Sept 2016.
Paya Lebar Freehold Shops below $600K
Freehold Shop at Paya Lebar Regional Centre.
Face main road/entrance/bus-stop/water point.
Tenanted $1900 pm.
Call David for more details @ 94772121
http://www.sgbayhomes.com/19270612
Grandlink Square is a commercial property located in 511 Guillemard Road in district D14. This commercial space is primarily used for Mall Shop rental and sale. This Mall Shop space is 0.45 km away from Paya Lebar MRT Station/Interchange. The tenure of this commercial property is Freehold.
Joo Chiat freehold shophouse block sold for S$16.8M
A freehold shophouse block comprising five units along Joo Chiat Road has been sold for S$16.8 million. The price works out to S$1,357 per square foot based on the lettable area of 12,382 sq ft.
The site is zoned for commercial use within the Joo Chiat Conservation Area, a secondary settlement. The front of the building has two storeys and an attic – and this part of the building has to be conserved. However, the rear portion, which is four storeys high, can be torn down and rebuilt up to five storeys.
The five units were originally said to have separate land lots but were amalgamated at some point in the past, resulting in a boutique building that stands currently on a single land lot and bearing the address 201 Joo Chiat Road.
201 Joo Chiat Road is being sold by Kota Development, which is linked to the Lee family that founded OCBC.
The buyer is a company understood to be linked to Singapore-based SilkRoad Property Partners, a property investment management company and fund manager. The company was set up in 2012 by the former AEW Asia senior management team led by Peter Wittendorp.
BT understands the transaction was a private treaty sale.
CBRE confirmed it brokered the sale of 201 Joo Chiat Road but when contacted, Sammi Lim, associate director (investment properties), declined to comment on the transaction.
201 Joo Chiat Road has some unutilised plot ratio (ratio of maximum gross floor area to land area). Its current gross floor area (GFA) of around 15,800 sq ft is 2.6 times the site area of 6,031 sq ft – lower than the maximum 3.0 plot ratio indicated for the site under Urban Redevelopment Authority’s Master Plan 2014.
Currently, the building is only partially leased – as offices and showrooms. Two of the five ground-floor units are said to have been approved for food and beverage use although they are not being utilised for this purpose at the moment. The property has five attached car park lots accessible via a backlane.
There is scope to drive up the property’s rental income, especially if the asset undergoes renovation once leases expire, said market watchers.
“The price is quite reasonable but the new owner will have to pump in some money and do a fair amount of spruce-up; currently the building has low occupancy and rental rates,” said a conservation shophouse industry observer.
Another company in the Lee family stable recently divested a plum light industrial building next to the upcoming Bendemeer MRT Station on the Downtown Line for S$88 million.
The property has been bought by entities linked to Raymond Ng Ah Hua, who controls property group BS Capital as well as listed Enviro-Hub Holdings.
On site is a seven-storey property, which has a basement car park. There are also some surface car park lots.
The building, which was completed in 2002 to high-tech industrial specifications, is on a 79,818 sq ft site with a balance lease term of 50 years. Industry watchers say the existing development has probably tapped the maximum allowable GFA for the site.
The S$88 million price for the property works out to around S$500 psf based on its net lettable area of around 175,000 sq ft. The multi-tenanted building is nearly fully let.
http://business.asiaone.com/property/news/joo-chiat-freehold-shophouse-block-sold-s168m
Lower than expected bids at tender for Yishun site
A HOUSING Board tender for a mixed-use commercial/residential site at Yishun Ave 4 which closed on Tuesday garnered a “muted” turnout from just five bidders.
This fell short of consultants’ earlier predicted six, to as many as 18 bidders by the most bullish of the lot.
Northern Resi and Northern Retail, both units of listed construction engineering group BBR Holdings, beat four others to offer the highest price of S$185.09 million, which translates to S$629.24 per square foot per plot ratio (psf ppr).
Again, this was below even the floor of consultants’ predictions of at least S$650 psf ppr for the highest bid.
The Yishun plot, with a gross floor area of about 27,327 square metres, is the first of two selected government land sale sites to adopt a new building method called prefabricated prefinished volumetric construction (PPVC). It has to meet a certain level of prefabrication under new government rules for the built sector.
Two Koh Brothers units, KBD Ventures and Changi Properties, put in a very close second highest bid of S$181.6 million (S$617.37 psf ppr), only 1.9 per cent less than the highest tenderer.
R’ST Research director Ong Kah Seng thus called the top bid a “chance occurrence”. When interest is high in a site, bidders would bid aggressively, resulting in a wide margin between the first and second bids, but there was notably no outlying top bid in this tender, he said.
Sim Lian (Focus) Pte Ltd put in the third highest bid of S$168 million (S$571.14 psf ppr). The fourth and fifth bidders were Wee Hur Development and KSH Land Development, respectively.
Desmond Sim, CBRE research head for South-east Asia, said it was not surprising that the tender participants were developers with a construction arm, given the site’s mandatory use of PPVC technology. “Such developers have the advantage of being able to control construction costs better, transferring potential savings into their profit margins,” he said.
But the higher construction cost using the PPVC method – which involves assembling whole rooms or apartment units complete with internal fixtures off-site, and installing them on-site Lego-style – may also have been priced into the subdued bids, SLP International executive director Nicholas Mak said.
“In a buoyant property market, the developer may be able to pass on the higher construction costs to the buyers. But this could be difficult in the current market,” he said. The alternative would thus be for the developer to lower its own land costs.
Ong Teck Hui, national research director at JLL, said the bidders also likely also took into account retail and residential competition in the vicinity.
Northpoint City, an integrated development which includes the largest mall in the north, will be completed in 2018, while Junction Nine at Yishun Ave 9 will be ready in mid-2017. There are also some 920 units for sale at Northpark Residences, and 660 units for sale at Symphony suites.
Chia Siew Chuin, director of research & advisory at Colliers, cited the requirement for the commercial component of the development to be held under a single strata lot as another reason for the low bids.
“This disallows any strata subdivision of the commercial component during the lease term, which could have prompted a more cautious bidding strategy from developers due to the more restrictive investment exit options available,” she said.
The expected breakeven price for the residential component is estimated to be S$950 to S$1,000 psf. Its selling price could range from S$1,050 to S$1,150 psf, depending on the state of the market when it launches, she said.
The retail component could also achieve monthly gross rents of S$6 to S$12 psf, she added.
http://www.btinvest.com.sg/property/local/lower-than-expected-bids-at-tender-for-yishun-mixed-site/
Changi’s Jewel: Not just another mall
What started as an urgent but mundane need to expand Terminal 1 will now end in a Jewel – Changi Airport’s hoped-for iconic centrepiece to wow travellers and enhance the air hub’s attractiveness when completed by 2018.
Merely to expand the terminal would have been a wasted opportunity, said the chief executive officer of Changi Airport Group, Mr Lee Seow Hiang, at the ground-breaking for the retail cum airport complex yesterday.
“To address the capacity bottleneck, we could have just pushed out T1 and built a multi-storey carpark over it. But we felt we could do so much more. We had a chance, for the first time, to hub the three terminals together.”
And so the decision was made to raze T1’s open-air carpark and construct in its place a five-storey-high complex with five basement levels which would link all three passenger terminals.
T1 would also be upgraded and expanded in the $1.7 billion project.
Explaining at length, for the first time, the rationale and thinking behind the project, Mr Lee, who is also chairman of Jewel Changi Airport Development, a joint venture between Changi Airport Group and CapitaMalls Asia, admitted questions had been asked about the project.
Was this a vanity showpiece? In the light of manpower constraints in Singapore, why build another retail mall? Was the airport getting distracted from its core business of aviation?
“This question of purpose is not a trivial one,” he said, stressing that the first driving force behind the project was the growing capacity constraints at T1.
– See more at: http://news.asiaone.com/news/singapore/changis-jewel-not-just-another-mall#sthash.4i6obKtr.dpuf
OneKM mall opens today at Tanjong Katong
UOL Group, which is officially opening its newest mall OneKM this Sunday, said it has garnered close to 93 per cent of pre-commitment lease for the mall at a time when retailers and restaurateurs are facing a challenging time given a manpower crunch and rising cost pressures.
More than 70 per cent of shops are open now. The mall is expected to be fully operating next month. According to UOL, this is the largest shopping mall in the up-and-coming decentralised commercial hub in Paya Lebar.
The addition of the mall to the group’s portfolio provides another avenue of recurring income and will raise its retail portfolio by 50 per cent in terms of net lettable area.
UOL Group president (property) Liam Wee Sin said he sees the mall as a “catalyst” in Paya Lebar Central amid the lack of new retail supply in the east and expects it “to replicate the success” of the group’s niche shopping malls in Novena, namely United Square and Velocity@Novena Square.
OneKM is also expected to enjoy strong catchment of residents in the 244-unit Katong Regency, the sold-out condo project on top of the mall, when the condo is completed.
Sitting on a freehold site that previously housed the Lion City Hotel and the adjoining Hollywood Theatre, OneKM – located just one kilometre away from the Paya Lebar MRT station – has a net lettable area of more than 200,000 sq ft and more than 150 shops.
“We worked closely with our tenants to see how we can improve productivity to overcome the manpower issue facing local retailers and restaurateurs,” Mr Liam said. This has led to the introduction of new concepts that are less labour intensive, particularly the first centralised kitchen for three restaurants within a shopping mall.
Home-grown Chinese restaurant chain The Paradise Group is opening a “Paradise Dynasty” outlet and two concept eateries “Para Thai” and “Beauty in The Pot”, which serve Thai food and hot pots respectively.
Paradise Group CEO Eldwin Chua told reporters that having a centralised kitchen helped reduce its manpower needs for the three restaurants from 45 to 28 staff.
Mr Liam pointed out that some 30 per cent of the shop space in OneKM is occupied by F&B outlets, 60 per cent by specialty retail and 10 per cent by enrichment schools.
The mall counts Cold Storage and Food Junction as its anchor tenants, which took up 15 per cent of its space. There is also a mix of international brands like Uniqlo, Esprit and Adidas as well as niche local brands. More than half the tenants at OneKM are existing tenants of UOL’s malls.
Meanwhile, the group is set to launch a nearly 800-unit condo project at Upper Paya Lebar in the first quarter of next year, followed by another condo project launch on the site along Prince Charles Crescent in the second half of next year.
Mr Liam said the group is under no pressure to cut prices at Riverbank@Fernvale in Sengkang to move sales ahead of the two upcoming launches next year.
Seventy Saint Patrick and Riverbank@Fernvale, its two condo projects launched this year, are 72 per cent and 50 per cent sold respectively, while Thomson Three that was launched in September last year is 96 per cent sold.
