INTEGRATED DEVELOPMENT MARKET OVERVIEW The shift towards a live-work-play environment in recent years has contributed to the strong demand for integrated developments, which is well supported by a working population and an immediate residential catchment, creating a sustainable and vibrant ecosystem. Integrated developments typically have the following features: - feature a mix of different yet synergistic uses like retail, office, residential or hospitality, managed under one management; - offer a mix of uses which provides a “campus-like” or “precinct-type” of environment; - possess excellent connectivity to transportation nodes; - have high-quality green features and open spaces for the community; and - offer value-added services for tenants and other stakeholders15. The government, via the Urban Redevelopment Authority’s (URA) programmes such as the GLS Programme, CBDI Scheme and SDI Scheme, has successfully introduced more mixed-use precincts and integrated developments. Notably, Forum the Shopping Mall, voco Orchard Singapore and HPL House will be redeveloped into a mixed-use development in Orchard Road with hotel, retail, office and residential spaces under the SDI Scheme. Other recent completions include Guoco Midtown (office achieved Temporary Occupation Permit (TOP); retail partial) and One Holland Village. In December 2023, the GLS Programme released two potential integrated development sites. The 1H 2024 Confirmed List, consist of a mixed-use plot for commercial and residential use at Tampines Street 94 in the East Region while the 1H 2024 Reserve List include one sizeable “white site” at Woodlands Avenue 2 in the West Region. The commercial and residential parcel in Tampines Street 94 spans 2.35 hectares, with 10,500 sq m of commercial space and a minimum requirement of 650 sq m for childcare space. The site can yield a total of 585 residential units and is expected to launch in June 2024. The mixed-use development is likely to offer the only major mall within the Tampines West heartland estate strategically located right next to Tampines West MRT station (Downtown Line), to serve the growing number of homes in the area. Located within the Woodlands Regional Centre, the 2.75-hectare site at Woodlands Avenue 2, which can potentially yield 78,000 sq m of commercial space and 440 housing units is envisioned to become the main commercial hub in the North Region, home to new spaces for industry, research and development, learning and innovation. The Woodlands Regional Centre comprises two distinct precincts – Woodlands Central andWoodlands NorthCoast. Woodlands Central, where the land parcel is located at, is envisioned as a walkable, pedestrian-centric regional retail and employment hub serving the surrounding residents as well as those in the North Region. Advantages and Observations of Integrated Developments Integrated developments are observed to have advantages over conventional developments in certain aspects. In general, the office component within integrated developments can potentially command rental premiums of approximately 5% to 15%, and the premium is typically more pronounced in decentralised locations. In decentralised locations where quality stock remains relatively limited, the offices in integrated developments havebetter specifications. Theyarealsohighlyconnected to transport nodes and have greater accessibility to amenities. This contrasts with Grade B standalone offices in decentralised areas which typically do not enjoy the same level of connectivity and convenience. 15 Includes integrated services across different parts of the integrated development, tenant offers and events, access to certain privileges such as discounts and updates, and the use of other facilities and amenities within the larger integrated development. 106 CAPITALAND INTEGRATED COMMERCIAL TRUST INDEPENDENT MARKET REVIEW
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