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Tag: Clementi Mall

  • Singapore’s Clementi Mall Snapped Up for $809M in Record-Breaking Deal by The Elegant Group

    Singapore’s Clementi Mall Snapped Up for $809M in Record-Breaking Deal by The Elegant Group

    The prominent Clementi Mall in Singapore has changed hands, with Cuscaden Peak Investments selling the property to The Elegant Group for a hefty sum of S$809 million.

    The Elegant Group’s Expanding Portfolio

    The Elegant Group, a business entity associated with entrepreneur Zhao Zhichao, is steadily expanding its portfolio. The group now boasts ownership of five malls situated in Singapore, as well as six properties located in the heart of Sydney.

    Interestingly, the final transaction price of the Clementi Mall was 8 per cent more than the guide price set in August.

    Key Details of Clementi Mall

    The Clementi Mall is no ordinary property; it occupies a site with a 99-year lease that started on August 31, 2010. The structure, as described by Cuscaden Peak Investments, is a six-storey retail development featuring approximately 191,000 square feet of retail space. The mall’s prime location and convenient access, thanks to its direct links to the Clementi MRT Station and bus interchange, make it a desirable piece of real estate in Singapore.

    The Role of Cushman & Wakefield and Savills

    The sale of the Clementi Mall was brokered by renowned real estate firms, Cushman & Wakefield and Savills. They received considerable interest in the property, with 12 responses to an expression of interest request, which concluded on October 3.

    Questions & Answers

    Who is the new owner of the Clementi Mall?
    The Elegant Group, associated with entrepreneur Zhao Zhichao, is the new owner of the Clementi Mall.

    How much was the Clementi Mall sold for?
    The Clementi Mall was sold to The Elegant Group for S$809 million, 8 per cent higher than the guide price from August.

    What is unique about the Clementi Mall’s location?
    The Clementi Mall is strategically located, being directly connected to the Clementi MRT Station and bus interchange. This makes it easily accessible, thereby increasing its desirability as a retail property.

  • Clementi Mall Hits Singapore Market With S$750 Million Price Tag Amid Cuscaden Peak’s Portfolio Optimization Strategy

    Clementi Mall Hits Singapore Market With S$750 Million Price Tag Amid Cuscaden Peak’s Portfolio Optimization Strategy

    Cuscaden Peak Investments has made the decision to put the Clementi Mall, located in Singapore, on the market. The asking price for the suburban, mid-range shopping hub is expected to be around S$750 million, as per sources privy to the matter.

    Property Details and Background

    The Clementi Mall is a bustling hub of activity, featuring a six-storey retail podium along with a basement level. The mall is home to approximately 160 tenants, providing a wide range of services and products to meet various consumer needs. A key selling point for the commercial property is its direct link to the Clementi MRT station, which attracts an impressive footfall of around 300 million visitors annually.

    The rumored sale is reportedly a part of Cuscaden Peak Investments’ larger business strategy of portfolio optimization and capital recycling.

    The mall’s current asking price represents an increase of about 15% compared to its previous valuation of approximately $645 million in December of the previous year.

    Managing the Sale

    To streamline the sale process, two renowned real estate service providers, Cushman & Wakefield and Savills, have been appointed.

    Cuscaden Peak Investments, the current owner of the mall, is a wholly-owned subsidiary of Cuscaden Peak. The latter, a consortium, was initially founded by Hotel Properties Ltd (HPL), CLA Real Estate Holdings of CapitaLand, and a Mapletree Investments unit.

    In 2022, this consortium made headlines by acquiring Singapore Press Holdings (SPH), which included The Clementi Mall within its portfolio. The mall was a part of SPH Real Estate Investment Trust and was later rebranded as Paragon Reit.

    Over time, HPL chose to exit the consortium. Subsequently, Paragon Reit underwent privatization in April and was delisted in June.

    Questions & Answers

    What is the estimated value of the Clementi Mall?
    The current asking price for the Clementi Mall is around S$750 million, which is a 15% increase from its valuation in December of the previous year.

    Who are the managers appointed for the sale of the mall?
    Real estate service providers Cushman & Wakefield and Savills have been tasked with managing the sale of the mall.

    Who are the current owners of the Clementi Mall?
    The Clementi Mall is currently owned by Cuscaden Peak Investments, a subsidiary of Cuscaden Peak.

  • SPH REIT’s net property income up, thanks to higher rents

    SPH REIT’s net property income up, thanks to higher rents

    Higher rental income has helped boost first-quarter turnover at SPH Reit, which owns two malls, Paragon in Orchard and The Clementi Mall in Clementi.

    Both properties continued their track record of full occupancy amid headwinds in the retail environment, says SPH Reit.

    Gross revenue for the quarter, to the end of November, grew 1.7 per cent to S$53.5 million (US$40.2 million), on the back of higher rental income, while net property income rose 1.9 per cent to $42.2 million.

    “In keeping with our long-standing philosophy of partnering tenants toward mutual success, the rental review for tenants takes into consideration occupancy cost,” says the group. “This will better position them to ride on the sales recovery since June.”

    However, there was a negative rental reversion of 10.6 per cent for Paragon’s new and renewed leases, which had mainly been committed 12 months earlier. This represented 4.4 per cent of the mall’s net lettable area.

    There was only one tenancy change at Clementi Mall, and the overall portfolio rental reversion – based on the weighted average of all expiring leases – was a negative 10.6 per cent for the quarter, compared with a positive 1.2 per cent for new and renewed leases last year.

    Meanwhile, SPH Reit Management CEO Susan Leng says the group has maintained its track record of 100 per cent committed occupancy and delivered steady performance. “The Singapore economic outlook has improved and retail sales have shown signs of recovery since June.

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  • Japan Food Holding trims offshore outlets

    Japan Food Holding trims offshore outlets

    Singapore-based Japanese restaurant chain Japan Food Holding achieved 10.8 per cent growth in net profit for the six months to September 30.

    This took its net profit to S$2.7 million (US$1.95 million) on the back of a 5.5 per cent increase in revenue to S$33.5 million.

    At the end of the period it had 51 outlets, up six from the same time a year ago.

    On a quarterly basis, the group maintained its net profit at about $1.4 million, while its revenue eased up by 4.7 per cent to $16.6 million.

    Japan Foods says its improved performance was driven mainly by it having more restaurants, with encouraging performances from its new brands including Dutch Baby Cafe, Ginza Kushi-Katsu and New ManLee Bak Kut Teh. There was also a higher gross profit margin for the second quarter, up from 84.3 per cent last year to 85.1 per cent, thanks to constant cost-management efforts such as bulk purchasing and product pricing.

    Outside Singapore, the group’s network dropped to 19 restaurants from 24 with the closure of three Ajisen Ramen restaurants in Malaysia and Vietnam. In Hong Kong, the group’s associated companies closed two Menya Musashi restaurants when their leases expired.

    Takahashi says the coming 12 months are expected to remain challenging in Singapore because of intense competition, tight labour supply, rising business costs and the uncertain economic outlook.

    Executive chairman/CEO Takahashi Kenichi says that consumer sentiment turning “bearish” because of recession fears has been tough on F&B businesses. “However, I believe we are offering good-quality food at reasonable price points, and this has enabled us to continue attracting diners.”

    Despite the solid overall result, the group’s flagship brand and main revenue generator, Ajisen Ramen, as well as its Keika Ramen brand, had a fall in revenue from $6.9 million in last year’s second quarter to $6.5 million for the latest period. This was a result of two Singapore restaurants – at Compass Point and Tiong Bahru Plaza – having to close for mall renovation works.

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