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CapitaLand Mall Trust
Annual Report 2015
Operations Review
Asset Enhancement Initiatives
Plaza Singapura commenced its interior rejuvenation
works in the third quarter of 2015. The works include
upgrading of floor finishes, railings/atrium void edges,
ceilings and corridor lighting as well as design
treatment of escalators. Furthermore, amenities
such as toilets, lift lobbies and nursing rooms will be
enhanced. The AEI is expected to be completed by
end-2016.
In October 2015, Tampines Mall completed its AEI and
successfully converted the mall’s Level 5 open roof
to a new education hub with well-known educational
tenants, and reconfigured levels 2 and 3 to bring in new
fashion offerings. With the new facade and covered
linkway to mass rapid transit (MRT) station, Tampines
Mall now caters better to shoppers’ needs, enhancing
their experience. There will also be additional works
to rejuvenate the mall, which include replacement
of the main atrium fascia and balustrade as well as
refresh interior finishes. These rejuvenation works are
expected to be completed in the first quarter of 2017.
In November 2015, IMM Building completed phase
two of its repositioning exercise to further increase
the number of outlet stores. It is Singapore’s largest
outlet mall and currently houses 85 outlet stores with
new designer brands. It also boosted its F&B offerings
and enhanced the shopping experience. The new
link bridge improved the connectivity between IMM
Building, Westgate and Jurong East MRT interchange
station.
Clarke Quay completed its reconfiguration works at
Block A in April 2015 and Block C in December 2015,
to house more F&B and entertainment concepts,
including a world-class dance club.
Acquisition and Divestment Activities
We continually evaluate our portfolio of assets and
explore oppor tunities to enhance value for our
Unitholders.
On 1 October 2015, CMT acquired all units in Brilliance
Mall Trust (BMT) from CMA Singapore Investments
(3) Pte. Ltd. and Brilliance Residential Pte. Ltd. at
a purchase price consideration of S$180.4 million
after taking into account the agreed market value of
Bedok Mall of S$780.0 million (including fixed assets),
other net assets of S$3.5 million, and the existing
loan liabilities of S$603.1 million. The acquisition was
part funded by the issuance of 72.0 million units at
the issue price of S$1.9022 per unit amounting to
approximately S$137.0 million, with the balance
comprising bank borrowings. As part of an integrated
retail-residential-transport hub development, Bedok
Mall complements CMT’s existing portfolio of mainly
suburban malls catering to the necessity shopping
segment, and strengthens its presence in the eastern
part of Singapore.
On 15 December 2015, CMT sold Rivervale Mall
to a private equity fund managed by AEW Asia at
S$190.5 million and recorded a gain of S$72.7 million,
after taking into account divestment fee and other
related expenses. The net proceeds of S$188.0 million
were used to partially repay the term loans used to
finance the acquisition of BMT.
Redevelopment of Funan DigitaLife Mall
The intention to redevelop Funan DigitaLife Mall
into an integrated development was announced on
10 December 2015.
Funan DigitaLife Mall has utilised 3.861 of its allowable
gross plot ratio of 7.0. As such, the mall has an
untapped gross floor area of about 388,000 sq ft.
The redevelopment of Funan DigitaLife Mall will
maximise the full potential of its site. It is envisioned to
be an experiential creative hub in the city that engages
communities to incubate new ideas and passions,
and enables shoppers to enjoy retail in a technology-
enabled environment.
The mall is expected to close in the third quarter of
2016, with redevelopment works commencing soon
after and taking about three years.
