, Singapore

Aggressive rival malls could give CapitaMall Trust a run for its money

Six of its malls are under threat.

CapitaMall Trust reported a good set of results for the first quarter, but analysts reckon that its malls may soon be under threat from its aggressive rivals.

According to Maybank Kim Eng analyst Joshua Tan, six of CMT’s 16 malls will soon face stiff competition as rival malls complete their own asset enhancement initiatives (AEIs).

“About 566k sf of new retail space from Capitol, Marina Square AEI, South Beach and Suntec AEI is bound to give Raffles City tenants some bargaining power,” Tan wrote.

Meanwhile, Funan’s foot traffic could also be further diverted as the property is not integrated with its surrounding new developments.

“In Jurong, IMM and JCube are both not linked to the nearest MRT station or Jurong’s new hospital. Newer competing malls, Westgate-Jem-Big Box, are. In 1Q16, Hillion Mall will emerge in-between Bukit Panjang Plaza and the LRT,” he stated. 

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