Source : Straits Times – 4 Jul 2009
IT’S becoming a boulevard of beauties and beasts – extravagant steel-and-glass architectural sylphs up against some pretty tatty and frayed old-timers that don’t so much show their age as shout it from their rusty rooftops.
Oh, what the stakeholders wouldn’t give for a little Botox to smooth out their deep lines and wrinkles. Problem is, it’s not often they can score a majority vote to agree on the appropriate procedure and price.
Mr Charles Yue, associate director of Ginza Real Estate, said: ‘Decision-making at strata-title malls is slow, usually only at the AGM, which is at the end of every year.’
Far East Plaza – which comprises retail and office space as well as serviced apartments – is 44 per cent owned by its developer Far East Organization. The rest of the property is owned by about 500 individual landlords, said Mr Yue, who added: ‘When it comes to money, people are generally unwilling to give.’
Take Lucky Plaza, also developed by Far East Organization, and completed in 1977. It is still awaiting management approval – after at least four years – for a $4.5 million pop-out facade which, according to plans filed with the Urban Redevelopment Authority, involves a space-age wave-like canopy on the ground floor.
Or Tong Building, an 18-floor office complex part-owned by The Hour Glass and Rolex and sitting like a plain Jane next to the glamorous Paragon Shopping Centre. It opened in 1978 and housed Singapore’s first standalone Gucci boutique. Today, even with a Rolex showroom on the ground floor, the building looks stuck in the 1970s.
The Hour Glass founder Jannie Tay said: ‘There’s always been people interested to both buy and redevelop the property. But it’s not happening. It’ll be great if everyone modernises and if all stakeholders could agree on how.’
At least they try.
In 2005, Far East Plaza spent $6.53 million to improve the block’s floors, ceilings and external walkways. It also buffed up the toilets and replaced the fountain in the lobby with a water feature that doubled as a stage.
That same year, Lucky Plaza started a $3.3 million interior upgrade which included improved toilets.
But while their best days may have come and gone, these malls of a certain age do have staunch supporters – some even in the unlikeliest places.
Ms Soon Su Lin, chief executive of Orchard Turn Developments, said: ‘They have their own niche. If that’s where people want to buy their electronic goods, watches and phone cards, so be it. They contribute to the character of Orchard Road and make it more interesting.
‘Besides, you need to have somewhere where locals shop. Tourists don’t want to visit a place where there are only other tourists.’
Indeed, the youth-oriented Far East Plaza has built up its name as a launching pad for start-ups and young entrepreneurs and is characterised by its small shop spaces, a handful of which are filled with services like tailors and cobblers.
Lucky Plaza houses medical offices plus an array of electronics and watch retailers – many with loyal customers, note industry insiders.
Its stakeholders include Far East Organization, Hong Property Investment – a subsidiary of the Hong Leong Group – and Royal Brothers.
A source close to Royal Brothers, which has a near 7 per cent interest in Lucky Plaza’s share values through a series of units in the basement leased to a food court operator and McDonald’s, told The Straits Times that rental for these units can average about $100 per sq ft.
That’s because sales per sq ft at these stores are some of the highest on the strip. A property consultant at Knight Frank was not surprised: ‘Yes, that is highly possible.’
So whether these malls are eyesore or heritage, it may make business sense to leave well enough alone.
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