The notable stretch of bungalows from 29 to 35 Scotts Road will receive a facelift, adding more buzz as it has been set aside by the Singapore Land Authority for redevelopment into a lifestyle hub.
Operators of fitness and health outlets, bridal and wedding shops, beauty services and restaurants are among the new tenants that can lease the bungalows after its redevelopment.
This suggests that existing tenants who fit the concept and criteria of the lifestyle belt may opt to stay, while those that operate office units may need to hit the road soon. However, those tenants who fall within the approved list are still required to submit a new tender bid.
Currently about 15 tenants occupy the 16,500 sq. m. land area and every bungalow has a built-in area of around 300–550 sq. m.
The lease of all the units expires by September 2010 and a spokesperson from SLA said that “there are plans to launch them (the bungalows) for tender by end June.”
“Current tenants interested in such uses will be invited to participate in the tender as well,” added the spokesperson.
DTZ, the managing agent of the bungalows, said most tenants are happy to take part in the tender and so far they have had no major complaints on the redevelopment.
Meanwhile, tenants whose businesses do not go along with the new lifestyle concept can bid for a space, provided that they change or adapt their businesses accordingly, according to the Mr. Keh Peng Leong, property manager for DTZ.
Asked about how much the rent of the bungalows will fetch after the redevelopment, Mr. Leong said it is still being worked out.
Analysts have claimed that this is a timely move as it will also benefit the nearby Cairnhill Road area, which is swiftly becoming a luxury condominium district.
New apartments in the area are tempting many wealthy individuals, said Mr. Colin Tan, head of research and consultancy at Chesterton Suntec International.
Mr. Tan added that the redeveloped bungalows will attract very niche businesses as the whole land area is fairly small. Clientele-wise, units in the area will also draw sophisticated people who desire the colonial nature of place.
“By itself, it has no critical mass of shops to be a hub destination by itself. The services there have to be very niche, unlike a big shopping centre,” said Mr. Tan, who thought that rentals for that area will be around $25 per sq. ft. for an F&B outlet.