The single-biggest attraction of PoMo, the Selegie Road mall formerly known as Paradiz Centre that has been put up for sale, is its busy, city-fringe location.
But converting footfall into shopping revenue may need a new tenant mix, analysts say.
“At this moment, the tenant mix of the mall is not attractive,” said Mr Samuel Tan, course manager for retail management at Temasek Polytechnic.
“It does not have this unique character that can pull in the crowds to the mall. There are no big names and no big retailers. Positioning of the mall has to be more distinctive to differentiate it from Orchard Road.”
PoMo underwent a $20-million refurbishment to increase its retail space three years ago. The retail and office development has a net lettable area of 182,000 sq ft, and current tenants of the 99-year leasehold property include casual-dining restaurants, a supermarket and a number of specialty schools.
Marketing agent Jones Lang LaSalle said PoMo holds great potential.
“The asset itself is in a unique location,” said Mr Anthony Barr, national director of investments at Jones Lang LaSalle.
“It’s close to both Dhoby Ghaut and Bras Basah MRT stations, and in the surrounding areas there is a significant amount of high-end residential development.”
The 10-storey PoMo has a retail area of 73,000 sq ft.
Based on the transactions in nearby properties, market watchers say PoMo should be worth $250 million.
But analysts say investors will be cautious because retail rents could be hit next year by oversupply.
According to a third-quarter retail real estate summary by DTZ, retail rents are at about $24 to $40psf per month.
PoMo’s office segment, however, may perform better due to a pick-up in that market. Analysts expect office rental in Singapore to rise by 15 to 20 per cent next year.
Source : Today – 10 Dec 2010