Developer Overseas Union Enterprise (OUE) is set to invest in excess of S$140 million on two retail mall projects in the central business district.
Among the plans, OUE will be developing a five-storey retail mall at the existing DBS Building at Shenton Way, according to a source close to the matter.
Built in 1975, DBS Building at Shenton Way will soon be home to a new shopping mall, spanning some 170,000 square feet.
According to a source familiar with the plans, OUE is expected to spend over S$100 million to build the new mall.
It is slated to open in mid-2014, and the mall will offer retail and F&B options as well as a supermarket.
Analysts said a retail development will support an increasing residential population in the downtown area.
Donald Han, special advisor, HSR, said: “On the size of 170,000 (square feet) you would probably expect rents on average of about S$13 – 16 per square foot. Because this is still a new market place, it certainly has more upturn, upside in the next two to three years especially when most of the residential and hotel components are fully in place.”
OUE acquired DBS Building in 2010 for about S$871 million. The podium level will be converted to a shopping mall, but it appears that the developer is keeping the two office towers and it is currently looking for tenants.
Existing anchor tenant DBS Bank is expected to move out of both office towers by year-end.
And it is likely that OUE could see some rental upside when it leases the office space to new tenants.
Apart from the developments along Shenton Way, Channel NewsAsia understands that OUE will also refurbish the shopping mall at One Raffles Place.
Renovation work could start at the end of the year and it is expected to cost over S$40 million.
Source : Channel NewsAsia – 30 Jul 2012