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CapitaLand Mall Trust
Annual Report 2015
Independent Retail Market Overview
Jack Backen
Director
Urbis
29 February 2016
Despite these difficult conditions, we remain optimistic
about the long-term potential of the Singapore market.
Singapore continues to exhibit a stable and responsive
political environment, well educated workforce,
solid population growth, and continues to grow as
a tourist destination. History has shown Singapore’s
capacity to rebound strongly from economic slumps;
we see no reason for this downturn to be any different.
The retail market has grown at solid levels over the past
decade, supporting ongoing expansion of shopping
centre supply. Singapore does not experience the
sort of retail oversupply that plagues many unplanned
cities as the URA is heavily involved in controlling retail
supply; therefore we see no reason for this to change
any time soon. This, in turn, has supported good
average rental growth at high levels of occupancy.
Disclaimer
This report is dated 29 February 2016 and incorporates information and events up to that date only and excludes any information arising, or event
occurring, after that date which may affect the validity of Urbis Pty Ltd’s (Urbis) opinion in this report. Urbis prepared this report on the instructions,
and for the benefit only, of CapitaLand Mall Trust (Instructing Party) for the purpose of providing a high level overview of the retail market in Singapore
(Purpose) and not for any other purpose or use. To the extent permitted by applicable law, Urbis expressly disclaims all liability, whether direct or
indirect, to the Instructing Party which relies or purports to rely on this report for any purpose other than the Purpose, and to any other person which
relies or purports to rely on this report for any purpose whatsoever (including the Purpose).
In preparing this report, Urbis was required to make judgements which may be affected by unforeseen future events, the likelihood and effects of
which are not capable of precise assessment.
All surveys, forecasts, projections and recommendations contained in or associated with this report are made in good faith and on the basis of
information supplied to Urbis at the date of this report, and upon which Urbis relied. Achievement of the projections and budgets set out in this report
will depend, among other things, on the actions of others over which Urbis has no control.
In preparing this report, Urbis may rely on or refer to documents in a language other than English, which Urbis may arrange to be translated.
Urbis is not responsible for the accuracy or completeness of such translations and disclaims any liability for any statement or opinion made in this
report being inaccurate or incomplete arising from such translations.
Whilst Urbis has made all reasonable inquiries it believes necessary in preparing this report, it is not responsible for determining the completeness
or accuracy of information provided to it. Urbis (including its officers and personnel) is not liable for any errors or omissions, including in information
provided by the Instructing Party or another person or upon which Urbis relies, provided that such errors or omissions are not made by Urbis
recklessly or in bad faith.
This report has been prepared with due care and diligence by Urbis and the statements and opinions given by Urbis in this report are given in good
faith and in the reasonable belief that they are correct and not misleading, subject to the limitations above.
While our short-term forecasts are for a further six
to 12 months of weakness, we expect to see the
start of a rebound in 2017, with growth picking up to
historic levels in 2018. Over the long term, we expect
that Singapore should continue to exhibit solid rental
growth at high levels of occupancy.
