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CapitaLand Mall Trust to shake things up

SINGAPORE — CapitaLand Mall Trust (CMT), Singapore’s largest shopping mall trust, is revamping its portfolio with major initiatives underway at its key properties including Clarke Quay, JCube, Plaza Singapura and IMM, as it seeks to upgrade consumer experiences and align itself with the needs of the younger generation amid a changing retail landscape, falling tourist numbers and growing competition for consumers’ dollars.

JCube, one of CapitaLand Mall Trust's key properties. Photo: CapitaLand Mall Trust

JCube, one of CapitaLand Mall Trust's key properties. Photo: CapitaLand Mall Trust

SINGAPORE — CapitaLand Mall Trust (CMT), Singapore’s largest shopping mall trust, is revamping its portfolio with major initiatives underway at its key properties including Clarke Quay, JCube, Plaza Singapura and IMM, as it seeks to upgrade consumer experiences and align itself with the needs of the younger generation amid a changing retail landscape, falling tourist numbers and growing competition for consumers’ dollars.

“Singapore as a nation is going through a restructuring from an economic standpoint. (This) is the best time for us to reorganise too … when the economy turns around we will be prepared,” Mr Wilson Tan, Chief Executive Officer of CapitaLand Mall Trust Management told TODAY.

Among some of the challenges facing CapitaLand Mall Trust and other mall owners are an overall supply of retail space, with many shopping centres offering similar types of stores.

Coupled with an onslaught of online shops offering low-cost shopping and free delivery services, as well a strong Singapore dollar prompting Singaporeans to travel overseas for their holidays and shopping, the need to remain relevant is vital.

“We are increasingly engaging ourselves in renewed strategies to attract families to our malls in a way that they become community places for spending time and entertainment,” Mr Tan said, emphasising on the group’s focus on necessity shopping and that 76 per cent of its portfolio targets shoppers looking at fulfilling their daily needs.

As part of its strategy to keep shoppers coming back, CMT is remodelling its JCube Mall at Jurong to feature more pop-up or temporary stores commonly sought after by young entrepreneurs, budding designers, chefs and small businesses.

“We recognise the need to cater to the aspirations of younger Singaporeans. They are more entrepreneurial, which means they need to find the space to showcase their dreams and new business plans. We are allocating around 10 to 15 per cent of the space at JCube for them and are launching portals to create a platform to connect with them,” said Mr Tan.

CMT will also invest S$38 million to rejuvenate the interior of Plaza Singapura. The upgrading works are scheduled to begin by September and be completed by the last quarter of 2016. 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, including Zouk. Zouk, which is slated to open in June next year, will take up 31,000 sq ft of space.

Enhancement works at IMM, Bukit Panjang Plaza and Tampines Mall are also currently underway.

In addition to enhancement works, CMT is also exploring “new opportunities both in terms of acquisitions and greenfield developments”, Mr Tan said.

CMT earlier this month announced it was planning to buy Bedok Mall from sponsor CapitaLand for S$780 million deal. It is also keeping Funan Digital Mall on the block with the option of re-developing it in case it is not able to find a “suitable” buyer, Mr Tan said.

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