Industry players said that the proposed mixed-hotel-and-retail development on the site of the former Hotel Phoenix and Specialists’ Shopping Centre may encounter stiff competition, since it will be a latecomer in the revamped Orchard Road shopping strip.
Experts believe that once the Discovery Walk linkway is completed, the new development will eventually benefit from synergies with nearby shopping malls.
Discovery Walk is a pedestrian mall covering Stamford Canal and connects the Hotel Phoenix/Specialist’s Shopping Centre site to the adjacent malls 313@Somerset and Orchard Central. It will be fully complete with the redevelopment of the Hotel Phoenix/Specialist’s Shopping Centre site, which is owned by OCBC Bank.
Mainboard-listed engineering services company United Engineers (UE) recently announced that it acquired a $550-million contract to redevelop the site. The Temporary Occupancy Permits are expected to be acquired by 2013.
The competition is unavoidable, said Ms. Sng Ngoi May, executive director of the Orchard Road Business Association.
However, she considers the new development as the missing piece of the puzzle. “The three adjoining sites will enhance each others’ position. Right now, Discovery Walk is a blank wall till the centre clout is developed,” she said.
The project includes a pedestrian bridge and underpass, which will connect to the Orchard Emerald site.
Ms. Chua Chor Hoon, senior director of research at DTZ, said the estimated completion date in 2013 could be an advantage. “When they complete in 2013, they will be the only major shopping mall along Orchard road that is going to be launched.”