Wednesday, October 29, 2008

Tenants left in limbo

Source : Straits Times - 24 Oct 2008

THE battle surrounding the collective sale of Katong Mall has left the complex’s stable of enrichment, tuition and music centres in a state of limbo, business owners told The Straits Times.

While the mall has been sold for $219 million, several minority owners are contesting the deal, making the future uncertain for the building’s 28 education-related businesses.

‘Although the place has been sold, nothing has been said to us,’ said Mr Richard Lau, a sales manager at X’clusiv Interior, which moved to the mall in July.

The Straits Times spoke to 20 businesses, which said they would take a wait-and-see approach to finding a new location. Standard leases give most tenants up to six months to vacate the premises. But some fear they will be unable to find similar units for the same rentals at nearby malls, such as Parkway Parade.

Despite the uncertainty, some businesses have renewed their existing leases - such as Tien Hsia Language School and confectionery Awfully Chocolate - while others have inked new ones.

But a few are looking elsewhere.

As soon as the deal was announced in July, Ms Tan Poh Ling, 40, began scouting for an alternative location for her studio, The Ballet and Music Company.

‘All I know is what the papers have reported. So I was worried initially and started hunting,’ she said.

Some parents are concerned that they will be left in the lurch if enrichment centres close shop. That has prompted them to look for other options.

Business owner Loo Weng Lin, 36, who has a daughter enrolled at a mathematics tuition centre, fretted about a move. ‘I finally found a good tuition centre here where my child is improving. Where will I send my child if the centre closes or moves far away?’

Madam Linda Low, whose daughter attends several enrichment centres in Katong Mall, said the location is ideal.

The 46-year-old office assistant said: ‘It would be very inconvenient if the centres were to move to locations in different parts of Marine Parade.’


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