Clementi Mall - Singapore Press Holdings
Clementi Mall - Singapore Press Holdings
Clementi Mall - Singapore Press Holdings
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<strong>Clementi</strong> <strong>Mall</strong><br />
1
Outline<br />
1. Broader Property Strategy<br />
2. Suburban <strong>Mall</strong> Characteristics<br />
3. <strong>Clementi</strong> <strong>Mall</strong><br />
4. Bid Approach<br />
5. Risk Level<br />
6. Impact on SPH and Dividend Track Record<br />
7. Conclusion<br />
2
SPH’s broader property strategy<br />
• Build on track record of Paragon and Sky@eleven<br />
• Enhancing retail mall and residential portfolio<br />
• Aim to establish SPH presence in the retail mall sector over the long<br />
term<br />
• Residential developments dependent on future opportunities<br />
• Buy and hold attractive infrastructure to ride <strong>Singapore</strong>’s population<br />
growth<br />
• Property yields and capital appreciation to boost Group’s total returns<br />
3
Paragon’s track record –<br />
Asset enhancement and valuation growth<br />
Valuation<br />
($’m)<br />
2,000.0<br />
1,800.0<br />
1,600.0<br />
1,400.0<br />
1,200.0<br />
1,000.0<br />
800.0<br />
600.0<br />
Time<br />
97/98: Paragon<br />
upgrade / New<br />
medical & office<br />
tower<br />
2002 - 2003: Amalgamation of<br />
Paragon & Promenade<br />
2003 – 2007: Additional floor area<br />
CAGR: 8%<br />
2008 - 2009: Façade<br />
enhancement and<br />
extension of medical<br />
& office space<br />
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009<br />
Paragon valuation<br />
4
Suburban <strong>Mall</strong> Characteristics<br />
1. Developing into an integral part of <strong>Singapore</strong>ans’ lives, suburban dwellers<br />
increasingly affluent<br />
2. Well patronised with resilient rentals and sustainable income<br />
3. High shopper traffic, especially those with links to MRT stations and bus<br />
interchanges<br />
4. Average rentals range from $12psf - $16psf; better malls are at $15psf to<br />
$16psf<br />
5. Strong tenant take up rate<br />
5
1. Good catchment area<br />
• In the heart of <strong>Clementi</strong> Town<br />
• Close proximity to Holland / Bukit Timah / West Coast<br />
• Near key tertiary institutions<br />
2. Unique opportunity to be the anchor attraction in <strong>Clementi</strong> area<br />
3. Direct links to bus interchange and MRT ensure high pedestrian traffic<br />
4. Strong mall management experience of Paragon and NTUC team to<br />
develop mall concept and tenant mix<br />
5. <strong>Mall</strong> operations targeted for first half 2011<br />
6. Strong tenant interest registered<br />
7. Steady recurrent income stream<br />
<strong>Clementi</strong> <strong>Mall</strong><br />
6
Bid approach<br />
• Bid valuation based on (i) stabilised operations after rental renewal<br />
cycle and (ii) enhancing yield over time<br />
• Projected fit-out costs less than $40m, details subject to finalisation<br />
with contractors<br />
• Due to scarcity of land and growing population, prospect for capital<br />
appreciation is positive<br />
7
Risk Level<br />
• No development risk as HDB will deliver completed core structure<br />
and facade by August 2010<br />
• Strong partners: NTUC Fairprice and NTUC Income<br />
• Financed through internal funds with gearing for yield enhancement<br />
8
Impact of <strong>Clementi</strong> <strong>Mall</strong> on SPH and Dividend Track Record<br />
• Dividend track record is a function of recurring earnings<br />
• Investment is expected to contribute when operations are stabilised<br />
9
Conclusion<br />
• SPH has a positive outlook on the <strong>Singapore</strong> property sector<br />
• Strong track record in the retail mall sector<br />
• SPH is confident of making <strong>Clementi</strong> <strong>Mall</strong> a success<br />
10
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