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18 file protest against en bloc sale, alleging it was done in bad faith

AT LEAST 18 shop owners in Katong Mall have filed objections to a $219 million collective sale of the East Coast Road complex.

The owners, some of whom do not want to move from the mall, lodged a protest last month with the Strata Titles Board (STB), which deals with en bloc applications.

Property group Tuan Sing Holdings bought the mall, which has 256 units, in June.

It was one of the few collective property deals this year in a market that has been hit by the economic slowdown and rising building costs.

The shop owners are contesting the sale, though, saying proper procedures were not followed and the deal was conducted in bad faith.

Key among their concerns is that the two companies that owned 72 per cent of the mall, Golden Cape Investments and Megaton Investments, are wholly owned by buyer Tuan Sing Holdings.

When the mall went on the market in June, there were two bids - the lower one came from Tuan Sing-owned Golden Cape.

Although both were above the reserve price of $180 million, the property consultants were asked to negotiate better terms.

Golden Cape eventually increased its offer to $219 million.

While the final bid was almost $40 million above the reserve price, unit owner Jeanette Aruldoss said she is fighting the sale as ‘a matter of principle’. The 45-year-old said the deal was struck in bad faith.

But Ms Stella Hoh, a local director at Jones Lang LaSalle, which handled the sale, said proper procedures were followed.

Store owners also complained the sales committee did not have the 80 per cent majority needed to approve the deal by Oct 4 last year.

New collective-sale rules kicked in islandwide that day, which meant the whole process would have been scuttled if the 80 per cent threshold had not been reached.

But Ms Hoh said the committee had 80 per cent support.

Tuan Sing declined comment when approached by The Straits Times.

The STB said the collective sale is scheduled to undergo mediation beginning on Nov 10.

Source : Straits Times - 24 Oct 2008

THE battle surrounding the collective sale of Katong Mall has left the complex’s stable of enrichment, tuition and music centres in a state of limbo, business owners told The Straits Times.

While the mall has been sold for $219 million, several minority owners are contesting the deal, making the future uncertain for the building’s 28 education-related businesses.

‘Although the place has been sold, nothing has been said to us,’ said Mr Richard Lau, a sales manager at X’clusiv Interior, which moved to the mall in July.

The Straits Times spoke to 20 businesses, which said they would take a wait-and-see approach to finding a new location. Standard leases give most tenants up to six months to vacate the premises. But some fear they will be unable to find similar units for the same rentals at nearby malls, such as Parkway Parade.

Despite the uncertainty, some businesses have renewed their existing leases - such as Tien Hsia Language School and confectionery Awfully Chocolate - while others have inked new ones.

But a few are looking elsewhere.

As soon as the deal was announced in July, Ms Tan Poh Ling, 40, began scouting for an alternative location for her studio, The Ballet and Music Company.

‘All I know is what the papers have reported. So I was worried initially and started hunting,’ she said.

Some parents are concerned that they will be left in the lurch if enrichment centres close shop. That has prompted them to look for other options.

Business owner Loo Weng Lin, 36, who has a daughter enrolled at a mathematics tuition centre, fretted about a move. ‘I finally found a good tuition centre here where my child is improving. Where will I send my child if the centre closes or moves far away?’

Madam Linda Low, whose daughter attends several enrichment centres in Katong Mall, said the location is ideal.

The 46-year-old office assistant said: ‘It would be very inconvenient if the centres were to move to locations in different parts of Marine Parade.’

Source : Straits Times - 24 Oct 2008

WEST Coast Plaza, which underwent a $26 million makeover by Far East Organization, is currently close to 70 per cent leased, ahead of its soft launch on Nov 15.

Property developer Far East has also committed $1.6 million to advertising and promotion programmes for the mall till January 2009.

Rentals at the mall, which has a net lettable area of 160,000 square feet, will range from $7 to almost $30 per sq ft per month.

The mall has set aside 31 per cent of its three floors of retail space for food and beverage outlets. Susan Leng, deputy director for retail management at Far East Organization, told BT that this is in line with the trend of Singapore’s malls ‘going bigger with food’.

The proportion of retail space typically allocated to eateries across Far East’s malls has grown from 20 to 25 per cent previously to between 28 and 35 per cent now, she said.

The refurbished West Coast Plaza will feature an alfresco dining area targeted at the visitors it aims to draw - students and working professionals from educational and research institutions nearby, and families from private residences in the area.

Positioned as a ‘mid-market suburban mall’, West Coast Plaza’s anchor tenant will be Cold Storage supermarket.

The fact that there has not been much uptake from fashion and accessories retailers yet is not a real concern, Ms Leng said. ‘That segment is pretty soft islandwide, they’re always the first to be hit in a downturn. We believe we can bring in a more focused and unique selection of retailers if we wait. We’re in this for the long haul and the economy will come round,’ she said.

Source : Business Times - 23 Oct 2008

It will cater to businessmen, independent travellers

SINGAPORE-BASED Park Hotel Group’s third hotel here, Park Hotel Clarke Quay, will open in March next year.

The company has spent $130-$150 million developing the 336-room hotel and will position it as a four-star business establishment. However, its proximity to Clarke Quay is also expected to make it attractive to free and independent travellers.

‘The group’s growth has been achieved mainly through acquisitions, so we are excited about our first new-built property,’ said Park director Allen Law. ‘We have plans to acquire 10-12 more hotels in the next few years, mainly in the Asia-Pacific region.’

Park also said yesterday it has acquired a third hotel in China - Grand Park Xian - as well as its first in Japan.

‘Japan is one of the key markets we are looking at and we hope to acquire more in the future,’ said Mr Law. The group will take over its new hotel in Xian on Nov 1.

Park now operates its own hotels, but plans to extend its management arm to other hotels.

Although the local tourism industry is seeing fewer arrivals, Mr Law is optimistic about the new hotel here.

The company does expect a slowdown, but business is unlikely to be affected too badly, he reckons.

Park now has six properties. Its other two hotels in Singapore are Park Hotel Orchard - previously Crown Hotel - and Grand Plaza Park Hotel City Hall, formerly Grand Plaza Parkroyal Hotel.

The group was a participant in the inaugural ITB Asia trade and travel show yesterday.

The event provided ‘a platform to expand our brand awareness in Asia and beyond,’ said Park’s senior vice-president Mohd K Rafin.

Other participants included hotel chain Best Western, which is looking to showcase its properties in Asia, as well as promote its intended expansion into South-east Asian countries such as Singapore, Malaysia, the Philippines, Indonesia and Thailand.

Source : Business Times - 23 Oct 2008

It will also get new name and image as it goes upmarket

AFTER years of decline, one of the first malls in the western part of the island has been given a $26 million makeover and a new name - West Coast Plaza.

Formerly known as Ginza Plaza, the 15-year-old Clementi complex’s interior has been completely refurbished and will have a Miami-inspired tropical feel with palm trees and fountains when it opens next month.

Reflecting a new upmarket focus, it will have many mid-priced restaurants, and fancy touches, including the country’s first supermarket with a wine lounge. Anchor tenant Cold Storage will offer wine-tasting sessions hosted by an in-house expert every evening.

Food and beverage outlets like Fish and Co, Thai Express, and New York New York will also be ‘posher and sleeker’ than usual, according to Ms Susan Leng, deputy director of retail management at mall owner Far East Organization.

She added that a ‘very well-known’ fashion retailer from the United States will open its first Singapore outlet in the mall, though she declined to say which one.

The mall is hoping to attract a range of shoppers, from nearby National University of Singapore students to expatriates.

Clementi residents and students are hopeful the revamp will enhance a neighbourhood that so far has been lacking higher-end malls.

NUS business student Ms Amanda Eng, 23, said: ‘It’s good because there’s a dearth of eating places and nearby shopping.

‘We usually have to go to Holland Village or sometimes even VivoCity. The services at the mall will be good especially for those who stay in university halls.’

Long-time Clementi resident Mr Wesley Sum, 25, hopes the new mall will attract more people to the area and give it ‘a more upmarket vibe’.

Originally built to cater to Japanese expatriates, Ginza Plaza was part of a wave of heartland shopping malls which sprung up in the early 90s. Its counterparts include Junction 8 in Bishan, Tiong Bahru Plaza, and Northpoint in Yishun, which have undergone revamps in recent years.

The superstitious may say it was ill-fated from the start. In 1992, a gas explosion at its construction site left three dead and more than 120 injured. Then in 1994, a year after its opening, over half of its tenants shut for two days in protest against high rents and low customer traffic.

It continued to experience such problems in the 1990’s, before gaining popularity among teenagers as a gaming hub with its comic shops, gaming card stalls and LAN cafes. But that too eventually died down.

The mall still has its work cut out for it. Like other projects coming up, it has had problems attracting retailers amid the uncertain economic climate. It is currently only 60 per cent full, although Ms Leng expects that number to hit 70 per cent soon.

Source : Straits Times - 23 Oct 2008