Isetan Singapore will not renew ‘loss-making' Westgate store lease

It was not able to reach an agreement on the renewal terms with JG Trustee.

Department store operator Isetan Singapore will not renew the lease for its ‘loss-making’ store in Westgate with JG Trustee (JGT), a trustee of Infinity Mall Trust, an announcement revealed.

Pursuant to the terms of the lease, Isetan had the option to renew the lease for a period of three years by notifying JGT not later than six months prior to the expiry of the lease on 22 December 2019. Isetan and JGT reportedly had discussions on the renewal of the lease; however, both parties failed to reach an agreement.

“The rationale for the company’s decision not to renew the lease is due to both parties not being able to reach an agreement on the renewal terms of the lease favourable to this loss-making store,” Isetan explained in a statement. “The decision not to renew the lease is part of the company’s ongoing exercise of continuous assessment, realignment and consolidation of its operations to enable better deployment of existing resources among its other business units.”