The Chinatown Point retail and office complex is set to receive a $75 million face-lift.
In July 2010, a consortium of investors, which includes German fund manager SEB, Singapore Press Holdings and FairPrice Co-operative, acquired four office units and 283 strata-titled retail units in the property, which works out to more than 65 percent of the entire complex. It will fork out the money in an attempt to rejuvenate the mall and increase rental income.
Put together by Perennial Real Estate group, the consortium paid $250 million for the entire stake of City Developments in Chinatown Point.
“The revitalised Chinatown Point retail mall, with its enlarged footprint, improved layout and extensive offerings, is expected become a landmark for locals and tourists in the bustling Chinatown precinct,” said Mr. Pua Seck Guan, chief executive of Perennial.
Perennial (Singapore) Retail Management, one of the units of Perennial (Singapore) Retail Management, serves as the retail manager of the 65 percent stake of the partners.
With Perennial’s plan, owners of the other office units will benefit at no cost from upgrading works, and the office tower’s common amenities, the building’s façade and car park facilities will all be improved.
Owners will also be able to cut their annual contributions to the management corporation strata title (MCST) management fund by more than 30 percent and see ‘significant’ savings to the MCST sinking fund, said Perennial.
Following the overhaul, the average rent at the retail mall will likely increase to about $15 psf pm from below $10 psf pm, while the net lettable area will jump 18 percent to about 205,000 sq ft from around 174,000 sq ft.
The enhancement work will likely begin in the second quarter of the year and will be completed by the second quarter of 2013. Chinatown Point’s retail mall will still be operational since the proposed works will be done in phases.