FRASERS Centrepoint Trust’s (FCT) Northpoint mall has seen a 20 per cent hike in average rentals and a 70 per cent climb in shopper traffic after it was expanded and revamped.
The mall, which is located right next to Yishun MRT station, increased its net lettable area by more than 50 per cent with the addition of a $165 million new wing and a $38.6 million asset enhancement initiative. The new NLA is 235,000 sq ft, up from 149,200 sq ft.
With all the changes, the number of shoppers who visit the mall every month has jumped to 2.4 million, from 1.4-1.6 million three-and-a-half years ago, said Wendy Low, general manager of Frasers Centrepoint Malls. She was speaking to reporters at the ‘new’ Northpoint’s official opening ceremony yesterday.
The average rental fetched by the landlord has also gone up by about 20 per cent on a per square foot (psf) basis. Rents are understood to be in the region of $12-14 psf. ‘The enhancement is part of FCT’s strategic initiative in unlocking values in existing assets,’ said Mrs Low.
From 90 shops previously, Northpoint has almost doubled the number of shops to 168. Occupancy stands at close to 100 per cent.
Next in line for asset enhancement is Causeway Point at Woodlands. Work at the 419,000 sq ft mall could begin sometime later this year. The $710 million Causeway Point is the largest mall in FCT’s portfolio and draws the most visitors on a yearly basis.
FCT, which is part of the Fraser and Neave group, listed in 2006 with three malls in its portfolio – Causeway Point, Northpoint and Anchorpoint.
Earlier this year, it bought another two properties – the newly built extension to Northpoint and YewTee Point in Choa Chu Kang – for $290 million from parent company Frasers Centrepoint, the property arm of Fraser and Neave.
FCT shares lost one cent to close at $1.34 yesterday.
Source: Business Times, 13 Mar 2010