Low Keng Huat wins $295m mall contract

Source : Business Times - 26 Nov 2008

Mall aims to fully let out space up to 9 months ahead of completion in 2010

ENTITIES linked to Prudential Financial Inc of the US yesterday broke ground for their $1.3 billion mall at Serangoon Central.

Low Keng Huat has clinched the $295 million main construction contract, which works out to almost $320 per sq ft of gross floor area.

The as-yet-unnamed project will have about 400 parking lots, which BT understands is double the 206 maximum stipulated for the site based on government guidelines. The developers are said to have sacrificed commercial gross floor area to provide extra parking spaces.

Amid the current weak economic climate, the target is to get the mall’s 600,000 sq ft of net lettable area (NLA) fully leased six to nine months ahead of completion in late 2010.

This is a shorter time span than the recent industry norm of achieving full letting at least a year before completion, says Michael Leong, executive director of Guthrie Consultancy Services, which is project manager, retail consultant and marketing manager for the mall.

Mr Leong hopes to sign key anchor tenants by the end of next month for the mall’s hypermarket, 10-screen cinema complex, gourmet supermarket, department store and 500- seat food court. Tenants of these five spaces will take up about 30-35 per cent of total NLA. ‘Discussions are at pretty advanced stage,’ Mr Leong said.

Asking base monthly rents range from $5 to $35 psf, plus one to 3 per cent of their turnover.

The mall is being built on a 99-year leasehold site sold by Land Transport Authority through a tender that closed in March.

Gold Ridge was the top bidder at $800.9 million or $850 psf of potential gross floor area. The mall will be integrated at basement 2 with a new bus interchange, the existing Serangoon North East Line MRT Station and the Serangoon Circle Line station slated to open in 2010.

There will also be a 24-hour retail and food & beverage zone on the same level. ‘We’ll cater to early risers who want to grab an early bite before heading off for work, as well as insomniacs,’ said Mr Leong.

‘We’re also trying to push the hypermarket and cinema tenants to operate for extended hours - if not 24 hours. It’s a way of making the real estate work harder. We will also not preclude allowing other tenants to ’share’ units, with separate operators running two or three shifts. But this may be more suitable for F&B outlets than fashion/ apparel retailers.’

Gold Ridge is 50 per cent owned by Asia Property Fund II, with the other 50 per cent warehoused by Prudential Investment Management, a subsidiary of Prudential Financial.

Prudential’s Singapore- based Asian arm Pramerica Real Estate Investors (Asia) Pte Ltd is investment manager for the mall.

The development will have two basements and four levels above ground. The roof terrace will have a pet section, F&B outlets and tenants in the spa/beauty trade. The rest of the roof terrace will be landscaped. There will also be a double-storey indoor roof garden on the fourth level.

SAA Architects conceptualised a ‘green necklace’ along the building’s exterior. An open-air sunken courtyard at basement one will also be surrounded by greenery and water features.

Source : Business Times - 26 Nov 2008

Mall aims to fully let out space up to 9 months ahead of completion in 2010

ENTITIES linked to Prudential Financial Inc of the US yesterday broke ground for their $1.3 billion mall at Serangoon Central.

Low Keng Huat has clinched the $295 million main construction contract, which works out to almost $320 per sq ft of gross floor area.

The as-yet-unnamed project will have about 400 parking lots, which BT understands is double the 206 maximum stipulated for the site based on government guidelines. The developers are said to have sacrificed commercial gross floor area to provide extra parking spaces.

Amid the current weak economic climate, the target is to get the mall’s 600,000 sq ft of net lettable area (NLA) fully leased six to nine months ahead of completion in late 2010.

This is a shorter time span than the recent industry norm of achieving full letting at least a year before completion, says Michael Leong, executive director of Guthrie Consultancy Services, which is project manager, retail consultant and marketing manager for the mall.

Mr Leong hopes to sign key anchor tenants by the end of next month for the mall’s hypermarket, 10-screen cinema complex, gourmet supermarket, department store and 500- seat food court. Tenants of these five spaces will take up about 30-35 per cent of total NLA. ‘Discussions are at pretty advanced stage,’ Mr Leong said.

Asking base monthly rents range from $5 to $35 psf, plus one to 3 per cent of their turnover.

The mall is being built on a 99-year leasehold site sold by Land Transport Authority through a tender that closed in March.

Gold Ridge was the top bidder at $800.9 million or $850 psf of potential gross floor area. The mall will be integrated at basement 2 with a new bus interchange, the existing Serangoon North East Line MRT Station and the Serangoon Circle Line station slated to open in 2010.

There will also be a 24-hour retail and food & beverage zone on the same level. ‘We’ll cater to early risers who want to grab an early bite before heading off for work, as well as insomniacs,’ said Mr Leong.

‘We’re also trying to push the hypermarket and cinema tenants to operate for extended hours - if not 24 hours. It’s a way of making the real estate work harder. We will also not preclude allowing other tenants to ’share’ units, with separate operators running two or three shifts. But this may be more suitable for F&B outlets than fashion/ apparel retailers.’

Gold Ridge is 50 per cent owned by Asia Property Fund II, with the other 50 per cent warehoused by Prudential Investment Management, a subsidiary of Prudential Financial.

Prudential’s Singapore- based Asian arm Pramerica Real Estate Investors (Asia) Pte Ltd is investment manager for the mall.

The development will have two basements and four levels above ground. The roof terrace will have a pet section, F&B outlets and tenants in the spa/beauty trade. The rest of the roof terrace will be landscaped. There will also be a double-storey indoor roof garden on the fourth level.

SAA Architects conceptualised a ‘green necklace’ along the building’s exterior. An open-air sunken courtyard at basement one will also be surrounded by greenery and water features.