Redevelopment works for Iluma to be completed mid-year

Redevelopment works for entertainment complex Iluma is set to be completed by the middle of the year.

Located in Bugis, Iluma opened more than two years ago, but it has not been able to attract the large crowd it had hoped for.

Last April, CapitaMall bought over Iluma and has put in $38 million into the mall’s redevelopment.

When completed, there will be more retail shops and restaurants on the first level. The total lettable area will also be increased by 5 per cent.

Currently, the mall houses a cinema, an arcade, theme restaurants and retail shops.

Property analysts said the Urban Redevelopment Authority requires 60 per cent of the floor area to be used as entertainment space.

But they added that entertainment is not a profitable business in Singapore due to consumers’ spending patterns.

SLP International research head Nicholas Mak said: “The time they spend in entertainment, which is typically the movie theatres, are fairly long – let’s say two hours – but they may need to spend anywhere from 10 to 11 dollars to buy the tickets.

“If they were to spend the same amount of time of two hours in, let’s say, going shopping, they’ll be spending a lot more than 10 dollars. Hence, the profit and rental of shops can be higher than that of entertainment space.”

Entertainment complexes like Iluma are not common in Singapore, and analysts said the key to success depends on several factors like location and size.

They added that if there is enough space, developers can build themed entertainment facilities, which may appeal more to the crowd.

Source : Channel NewsAsia – 26 Jan 2012

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