#City&Country:* HDB to sell Clementi Mall by tender

The Singapore HDB is putting up Clementi Mall for sale by tender and has appointed Jones Lang LaSalle (JLL) as the exclusive marketing agent. The suburban retail mall is at the junction of Commonwealth Avenue West and Clementi Avenue 3, and in the heart of an established residential township with over 98,000 residents. It is also supported by a student population of 65,000 from tertiary institutions like the National University of Singapore, Singapore Polytechnic and Singapore Institute of Management.

The suburban mall is being built by HDB and forms part of a larger integrated development at the hub of Clementi Town. Sitting on top of the mall will be two blocks of 40-storey residences (388 apartments) and it will be linked to a two-storey carpark and bus interchange. The mall will also be linked directly to the Clementi MRT station on the third floor.

The buyer of the 7-storey, 99-year leasehold Clementi Mall will have full flexibility to plan the interior theme as well as naming rights, says Stella Hoh, head of investments at JLL. Permissible gross floor area (GFA) is around 269,100 sq ft. The library on the fifth floor has an additional GFA of around 21,270 sq ft. The property is under construction and is scheduled for completion and hand­over at end-August next year. JLL estimates that the new owner would have to spend another $50 million to fit out the mall. Indicative pricing is said to be “in excess of $300 million”.

“The Singapore retail sector has traditionally been tightly held and there are few retail opportunities available,” says Hoh. “The suburban mall has proven to be resilient in past economic downturns as they rely on domestic consumer spending,” she says. Hoh adds that occupancy rates have consistently been more than 97% over the past decade. The tender closes at noon on Nov 10. — The Edge Singapore

This article appeared in City & Country, the property pullout of The Edge Malaysia, Issue 776, Oct 12-18, 2009