Landlords splurge on mall makeovers to woo finicky tenants

To buck intensifying headwinds.

Landlords have a costly answer to intensifying retail headwinds. According to Colliers, mall operators are relying on asset enhancement initiatives to cater to the fast-changing consumer taste and to stay ahead of the competition.

With the retail operating environment becoming increasingly challenging, it is imperative for existing malls to continuously upgrade to cater to the fast-changing consumer taste and to stay ahead of the competition. Thus, several asset enhancement initiatives (AEIs) have been lined up for shopping malls.

CapitaMall Trust (CMT), for example, has announced AEI plans for three malls--Bukit Panjang Plaza, IMM Building and Tampines Mall--all of which are in the suburbs.

Bukit Panjang Mall in the west is undergoing a makeover which includes reconfiguration of space at the third level and relocation of the roof garden.

Meanwhile, IMM Building, Singapore’s largest outlet mall located in Jurong East, will undergo Phase 2 AEI, which entails reconfiguration works on the second storey to increase retail offerings and enhance the outlet.

Over at Tampines in the eastern region of Singapore, the proposed AEI for Tampines Mall involves converting the roof area on the fifth floor into a new lettable retail space measuring between 25,000 sq ft and 30,000 sq ft and the reconfiguration of retail units at the second and third levels to enhance fashion offering.