HDB Seeks Buyer for Clementi Mall

Source : Business Times - 18 September 2009

THE Housing & Development Board is looking for a buyer for a mall in Clementi Town Centre which it is building as part of a larger 40-storey development that will also include two blocks of HDB flats and a bus interchange.

Clementi mall: The buyer will have naming rights to the mall which comprises two basement levels and five storeys above ground, with retail space of 193,750 sq ftJones Lang LaSalle, which is handling the tender for the mall, said the price is ‘in excess of $300 million’.

The mall comprises two basement levels and five storeys above ground, with a maximum net floor area of 18,000 sq m (or 193,750 sq ft) of retail space.

HDB is building only the core structure and facade, which it aims to hand over to the eventual buyer around August next year. The new owner will then finish the project internally, with flexibility to plan the theme and layout. The buyer will also have naming rights to the mall.

JLL estimates the buyer may spend about a further $50 million to fit out the mall. Assuming a $300 million purchase price, the total investment would work out to about $1,800 psf of retail net floor area. This does not take into account about 21,266 sq ft of gross floor area on the fifth level, set aside for a library under the development’s civic and community institution space.

Assuming gross average monthly rent of $11 psf is achieved for the mall, the net yield for the investor would work out to about 6 per cent. The buyer will get a fresh 99-year lease when HDB hands over the property.

An air-conditioned bus interchange will be on the mall’s first level, and the third level will be linked to Clementi MRT Station.

JLL’s Singapore and South-east Asia managing director Chris Fossick said: ‘This investment provides a rare opportunity to enter the tightly held and much sought-after suburban retail mall market in Singapore. The buyer will be able to add real value through its retail concept and layout,’

The tender for the mall closes on Nov 10.

HDB said yesterday this is the first development incorporating public housing, commercial facilities and a bus interchange in a single complex.

The two blocks of HDB flats will have a total of 388 units, comprising three-room to five-room flats. Most have already been taken up by HDB lessees affected by a Selective En-bloc Redevelopment Scheme (Sers) nearby.

‘There are very few unsold flats in the two blocks,’ HDB said. ‘After meeting demand for Sers, the balance of the flats will be released to the public in future sale exercises.’