Plaza Singapura to undergo upgrading

Plaza Singapura will undergo interior upgrading works in the third quarter of this year, mall owner CapitalLand Mall Trust (CMT) announced on Wednesday (Jul 22).

The rejuvenation works, set to complete by Q4 2016, will cost about S$38 million and will include the upgrading of floor finishes, corridor lighting, toilets, lift lobbies and nursing rooms. More nursing rooms will also be added on Level 2 as part of the revamp.

Previously, Plaza Singapura underwent a 21-month facelift which completed in 2012, to integrate the neighbouring The [email protected] with the mall.

CMT Management Limited (CMTML), the manager of CMT, also announced CMT’s H1 2015 financial results. In H1 2015, CMT’s gross revenue dipped 0.6 per cent to S$326.9 million compared to H1 2014’s S$329 million. CMTML attributed this to lower occupancy at Clarke Quay and JCube, and the ongoing refurbishment works at IMM Building and Bukit Panjang Plaza.

Clarke Quay is also undergoing a revamp, where 57,000 sq ft of space, formerly occupied by LifeBrandz, is being reconfigured to house new tenants. Nightclub Zouk is set to take up 31,000 sq ft of space and will open in June 2016.

CMT’s net property income also dipped in H1 2015, dropping 0.5 per cent from S$228.3 million in H1 2014 to S$227.2 million this year.

On a quarterly basis, CMT’s gross revenue dropped 2.9 per cent year-on-year to S$159.6 million in Q2 2015, and net property income dropped 4 per cent year-on-year to S$109.5 million in Q2 2015.

However, CMT’s distributable income was S$94 million in Q2 2015, 0.7 per cent higher than the S$93.4 million for Q2 2014. CMT’s distribution per unit (DPU) for Q2 2015 was 2.71 Singapore cents, a 0.7 per cent increase over Q2 2015’s 2.69 Singapore cents.

Based on CMT’s closing price of S$2.18 per unit on Jul 21, distribution yield is 4.99 per cent and unitholders can expect to receive their Q2 2015 DPUs on Aug 28.

On Jul 14, CMTML also said that it would buy Bedok Mall from sponsor CapitaLand in a deal that values the mall at S$780 million. The acquisition is targeted to be completed by Q4 2015.

RENTAL RATES UP, OCCUPANCY DOWN

Current rental rates for CMT properties mostly increased when compared to preceding rental rates, which are typically committed three years before. Clarke Quay experienced the highest increase of 23.8 per cent. Meanwhile, JCube saw a fall in rental rate, with a 13.5 per cent drop.

As of Jun 30, 2015, Tampines Mall, Junction 8, Plaza Singapura, Bugis Junction, Raffles City Singapore all experienced 100 per cent occupancy. JCube had the lowest occupancy of 82.3 per cent, followed by Clarke Quay with 85.2 per cent and IMM Building with 89 per cent. Overall portfolio occupancy was 96.4 per cent, down from 98.8 per cent at Dec 31, 2014, said CMTML.

CMT also registered a 3.4 per cent year-on-year increase in shopper traffic in H1 2015. Tenant sales went up by 2.9 per cent in the same period, said CMTML.

Source : Channel NewsAsia – 22 Jul 2015

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