objective
The objective for Raffles City is to optimise the financial performance of the property and to strengthen its market position as the leading integrated asset in Singapore’s downtown core, leveraging on the complementary and synergistic sectors of office, retail, hotel and convention centre.
DESCRIPTION
Raffles City is a prime landmark integrated development and one of the largest development in Singapore. The mixed-use development comprises:
- 42-storey Raffles City Tower;
- four-storey Raffles City Shopping Centre;
- 73-storey Swissôtel The Stamford and 28-storey Fairmont Singapore; and
- Raffles City Convention Centre.
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CapitaCommercial Trust (CCT) and CapitaMall Trust (CMT) jointly own the integrated development through the RCS Trust, the special purpose vehicle that holds Raffles City. RCS Trust was constituted on 18 July 2006 and is 60.0% owned by CCT and 40.0% owned by CMT. The property was acquired on 1 September 2006.
Raffles City is located in the downtown core at the fringe of Singapore’s Central Business District and within the Civic and Cultural District. The building is strategically located adjacent to, and directly connected to the City Hall MRT interchange station and the proposed Esplanade MRT station on the Circle Line of the MRT system, expected to be fully operational by 2010.
Raffles City Shopping
Centre (RCSC)
RCSC is a prime retail mall spread over four floors, including one basement level. The mall is anchored by Robinsons (department store) and Jasons Market Place (gourmet supermarket). RCSC also houses over 180 specialty shops, including international and high street fashion, branded lifestyle products and kiosks.
Asset Enhancement initiatives
RCSC began its Phase 1 asset enhancement works in April 2007, decanting over
65,000 sq ft of GFA from mechanical and equipment spaces, to create new retail space. The newly-created NLA of approximately
41,000 sq ft was transferred to Basement 1 (26,606 sq ft), Level 1 (5,994 sq ft) and Level 2 (8,164 sq ft), significantly increasing the NLA on these levels. The works encompassed the construction of a three-storey island podium in the atrium of RCSC, extension of The Raffles Marketplace in Basement 1, and the reconfiguration and extension of lease lines of some shops on Levels 1 and 2.
Levels 1 and 2 of the island podium are designated for retail, whilst Level 3 is the new elevated atrium space for events and promotions. A new three-storey high water feature integrated into the design of the island podium serves as an iconic focal point and meeting area.
Following the enhancement, The Raffles Marketplace was expanded by 30.0% to 116,174 sq ft, with part of the Basement 1 car park converted to retail space to facilitate this expansion. Works at the island podium were completed in December 2007. The expansion of The Raffles Marketplace is expected to complete in First Quarter1 2008.
Based on a capital expenditure of
S$62.4 million, the enhancements resulted in an incremental NPI of S$7.6 million and produced an ungeared ROI of 12.2%.
TENANCY MIX
With the completion of Phase 1 of asset enhancement works, the tenant mix on Level 1
is strengthened with more international fashion brands like Bally and Aigner. Concept stores which are new to Singapore such as Kate Spade, Stage, Cortefiel and Pedro Del Hierro are now exclusively available at RCSC. The revamped mall is also home to familiar brands like British India, Dockers and Raoul.
Level 2 now features a wide variety of high street labels like Naf Naf, FCUK, River Island, Topshop and Dorothy Perkins. Appealing to home owners and families with children, Level 3 boasts new brands such as ZONE and Okaïdi & Obaibi. ZONE retails chic home accessories from Denmark, while
Okaïdi & Obaibi is a French label for comfy children’s fashion.
We also intend to further fine tune the retail mix and elevate the positioning of the mall a notch higher. By widening the retail offering and introducing innovative concepts and renowned brand names, RCSC is well poised to continue to attract locals and tourists
to be the premier shopping mall in the Marina area. |
