Suntec City to Undergo S$410m Makeover

FF Fashion

1 Nov 2011
CommercialGuru.com.sg


Suntec City, a multi-purpose development in Marina Centre, is set to undergo a S$410 million asset enhancement initiative (AEI) to boost its retail space and spruce up its meetings, incentives, conventions and exhibitions (MICE) venues.

To be completed in four phases, the enhancement will comprise S$180 million in works on Suntec Singapore International Convention and Exhibition Centre (Suntec Singapore) and S$230 million in works on Suntec City Mall.

“We have carefully planned the implementation phases to minimise disruptions to both tenants and visitors. The AEI, when completed, would significantly enhance value to all our stakeholders,” said Yeo See Kiat, Chief Executive of ARA Trust Management (Suntec) Limited, Suntec Reit’s manager.

Suntec Reit noted that refurbishment works for phases one and two will cost S$55 million and S$75 million respectively, while phases three and four will both cost around S$50 million each.

It noted that the S$230 million capital expenditure will be funded by sale proceeds from the divestment of Chijmes and bank borrowings.

“During the execution of the AEI works, we would use part of the sale proceeds from Chijmes to mitigate the temporary dip in DPU (distribution per unit),” said Yeo.

According to a report by The Business Times, part of the AEI for Suntec City Mall will include more F&B options, with the new tenant mix featuring 30 percent specialty retail space (boutiques, fashion and accessories shops, new-to-market concept stores), 35 percent anchor/mini anchor units (fitness centre, hyper market, anchor stores and a 15-screen cineplex) and 35 percent F&B outlets.

Meanwhile, Suntec Singapore’s enhancement works will be focused on convertibility, flexibility and functionality, as well as integrating a high degree of advanced technology, such as a modernised façade and a two-storey interactive digital wall.

Other enhancements will include duplex and anchor stores, new retail entrances, direct connectivity from the convention centre to the mall, a new sky garden featuring watering holes and alfresco restaurants and a dedicated MICE entrance with express escalators.

The enhancement exercise is scheduled to take place between mid-2012 and 2015.