, Singapore

CapitaMall Trust braces for cutthroat retail showdown as rivals launch new malls

Six of its malls are under threat.

CapitaMall Trust is gearing up for cutthroat competition in the retail sector as its rivals launch new malls.

A report by Maybank Kim Eng stated that six of CMT's 16 malls are in or will face head-on competition this
year and next.

For instance, JCube, IMM and Westgate in Jurong have to contend with Jem and newly-opened Big Box, with occupancy at JCube and IMM dropping as a result.

While these two malls are still trying to reposition themselves, Raffles City and Funan will face 566k sf of fresh supply in their immediate vicinities, from Capitol, South Beach, and asset enhancement initiatives at Marina Square and Suntec.

Meanwhile, Bukit Panjang Plaza (BPP) will have to square off against Hillion Mall come 1Q16.

“DPU is expected to decline 1.2% this year as we factor in the competition and rising interest rates,” stated the report.
 

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