Old kingpins not resting on their laurels

Source : Straits Times – 4 Jul 2009

THERE are plenty of new players jostling for space on the speeding train that is Orchard Road’s rejuvenation but the old stagers are not ready to give up their seats yet.

The property tycoons and their firms, such as Far East Organization, Hotel Properties Limited (HPL) and City Developments (CDL), have built or currently manage venerable shopping centres such as Far East Plaza, Lucky Plaza, The Hilton Hotel Shopping Gallery, Forum The Shopping Mall, Palais Renaissance and Orchard Central.

They clearly have nothing to prove to the whippersnapper developers coming along now but they are not resting on their laurels or hoping that it all works out in the end.

Take Far East Organization, once known as the kingpin of Orchard Road malls, which built eight buildings there in the 1970s and 1980s.

The last malls the group, headed by Mr Ng Teng Fong, erected on Orchard Road were Cuppage Plaza and Far East Plaza in 1983, but it bounced back to the leading edge this year with the launch of the 14-storey Orchard Central next to the Somerset MRT station.

‘Back in those days, families would go to Far East Shopping Centre just to ride on the 14 pairs of escalators running up the building or take the bubble glass lifts at Lucky Plaza,’ recalls Ms Susan Leng, Far East’s director of retail management.

Now, shoppers get to climb something else: a five-storey indoor Via Ferrata climbing wall in Orchard Central, thanks to BorderX, a joint venture between two of the largest sport climbing gyms in the region.

Orchard Central has also set aside a dedicated retail space called The Ramp for budding local entrepreneurs and it has partnered with the National Arts Council to commission more than $9 million worth of art installations. It is the largest permanent public commission by a developer for a single property in Singapore, says Ms Leng.

CDL is also working hard to improve its niche-for-the-rich mall, Palais Renaissance. It is spending $16 million on renovation works, which are being carried out in phases for both the exterior and interior.

Its facade now features dancing LED lights. A long-time tenant, eatery Marmalade Pantry, will be replaced by Heart Bistro, a new concept between the former chief executive of Tung Lok Group, Mr William Tan, and the owner of Au Petit Salut, Ms Alice Ang.

Ms Corinne Yap, deputy general manager of leasing at CDL, says: ‘Palais was last upgraded over 10 years ago, so a revamp is due to serve our shoppers better.’

Pointing out the mall’s convenient location outside the Electronic Road Pricing zone, she adds: ‘We constantly refresh our tenant mix to cater to the ever-changing retail landscape and the niche shoppers that the mall attracts.’

Swee Cheng Holdings, which manages The Heeren, is shaping up for the future with confidence as well.

It recently embarked on a $20 million revamp for the mall, which will be conducted in five phases. This involves building glass structures on the facade that will accommodate double-storey outdoor cafes, as well as a three-storey egg-shaped construction for a flagship retailer by 2011, says a Heeren spokesman.

He adds: ‘Change was necessary as the youth who frequented The Heeren in the 1990s have grown up. The mall now seeks to stay relevant by targeting the young, affluent working adults with retailers offering more sophisticated fashion merchandise.’