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To ensure that CMT achieves sustainable growth in the
years ahead, the Manager has lined up the following asset
enhancement plans and other yield-accretive initiatives.
• Asset enhancements at IMM Building (IMM)
To optimise usage of retail space and increase property
yield, plans are in the pipeline to decant 53,700 square feet
of retail space along the secondary corridors of levels 2
and 3 and to transfer this space onto levels 1 and 2 as higher
yielding retail spaces. The level 1 open-air car park will
make way for more shop units with the car park lots transferred
to the decanted space on the fifth level. This will result
in a two-fold improvement in rental rates for the newly created
retail areas.
Work is expected to commence in early 2005. An approximate
S$45.0 million will be spent on these works and the Manager
expects an estimated increase of S$4.8 million in NPI per
year.
- At levels 2 and 3 secondary retail
areas as at 31 December 2003.
- At levels 1 and 2 after asset enhancement works which are scheduled
for completion by end 2005.
Note: Based on Manager’s estimate.
Note: Based on Manager’s estimate.
• Asset enhancements at Funan
A facelift will give Funan a totally new look. The new
“open concept” comes complete with see-through glass facade
from the second to third floors and direct access via escalators
from street level to the upper levels of the mall. This capitalises
on the heavy pedestrian traffic flow on the adjacent High
Street and Coleman Street junction and provides better accessibility
for shoppers and better visibility for the mall’s retailers.
Works will begin in February 2004 and is expected to be completed
by end 2004.
Travellators from ground level bring shoppers direct to the upper
levels (artist impression) |
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A brand new Funan with glass facade (artist impression)
New looks, new tenants (artist impression) |
This will further strengthen rental values at Funan in the years ahead.
• Asset enhancements at Junction 8
Work on Phase 2 has commenced and is expected to be
completed by end 2004. This involves the creation of a new
double-storey retail podium annexed to the existing mall and
integrated with the Bishan MRT station. Air-conditioned walkways
will connect the various annexes to the main retail podium,
providing for better comfort and improved traffic circulation
around the mall. In addition, the existing open plaza on level
2 will be relocated to level 3, bringing about better flow
of traffic and stronger rental values on the upper levels
of the mall.
A brand new facade (artist impression) |
Upgraded walkways (artist impression) |
When completed at the end of 2004, the S$27.7 million
asset enhancement (Phase 1 and Phase 2) is expected to generate
an increase of S$3.9 million in NPI per year.
• Asset enhancements at Tampines Mall
Work on a new outdoor area on level 4, which comes complete
with landscaped gardens and a kids’ play area, will commence
in 2004. The new open plaza will occupy the previously decanted
space and is expected to be completed by end 2004. This will
serve as an additional space for events and activities, and
the increased traffic flow to the upper levels will provide
the foundation for further improvement to rental rates.
Upcoming - Open plaza on level 4, complete with landscaped gardens and
kids’ play areas
• Sustainable growth over the long term
To ensure that forecast income is on track and long
term growth is in place, asset enhancement works at the malls
are staggered in phases to minimise disruptions to the portfolio’s
overall income stream. The chart on the right illustrates
the planned commencement and completion schedules for asset
enhancement works at Tampines Mall, Junction 8, Funan and
IMM.
• Growth through acquisitions and investments
The Manager will actively consider and may solicit opportunities
in Singapre to acquire shopping centres that meet CMT’s investment
criteria and targeted returns, as long as the investments
or acquisitions are yield-accretive to unitholders.
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