Profile of a Growth Story

Growth at a Glance

Managing Positive Growth
Letter to Unitholders

Testimony of Growth

Milestones of Growth

Poised for Growth

Portfolio Analysis

Investor Relations

Growing Accountability
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Financial Statements
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Corporate Information

 

CMT ANNUAL REPORT 2003

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Looking Ahead

To ensure that CMT achieves sustainable growth in the years ahead, the Manager has lined up the following asset enhancement plans and other yield-accretive initiatives.

• Asset enhancements at IMM Building (IMM)

To optimise usage of retail space and increase property yield, plans are in the pipeline to decant 53,700 square feet of retail space along the secondary corridors of levels 2 and 3 and to transfer this space onto levels 1 and 2 as higher yielding retail spaces. The level 1 open-air car park will make way for more shop units with the car park lots transferred to the decanted space on the fifth level. This will result in a two-fold improvement in rental rates for the newly created retail areas.

Work is expected to commence in early 2005. An approximate S$45.0 million will be spent on these works and the Manager expects an estimated increase of S$4.8 million in NPI per year.

  1. At levels 2 and 3 secondary retail areas as at 31 December 2003.
  2. At levels 1 and 2 after asset enhancement works which are scheduled for completion by end 2005.


Note: Based on Manager’s estimate.


Note: Based on Manager’s estimate.

• Asset enhancements at Funan

A facelift will give Funan a totally new look. The new “open concept” comes complete with see-through glass facade from the second to third floors and direct access via escalators from street level to the upper levels of the mall. This capitalises on the heavy pedestrian traffic flow on the adjacent High Street and Coleman Street junction and provides better accessibility for shoppers and better visibility for the mall’s retailers. Works will begin in February 2004 and is expected to be completed by end 2004.


Travellators from ground level bring shoppers direct to the upper levels (artist impression)
 
A brand new Funan with glass facade (artist impression)

New looks, new tenants (artist impression)

This will further strengthen rental values at Funan in the years ahead.

• Asset enhancements at Junction 8

Work on Phase 2 has commenced and is expected to be completed by end 2004. This involves the creation of a new double-storey retail podium annexed to the existing mall and integrated with the Bishan MRT station. Air-conditioned walkways will connect the various annexes to the main retail podium, providing for better comfort and improved traffic circulation around the mall. In addition, the existing open plaza on level 2 will be relocated to level 3, bringing about better flow of traffic and stronger rental values on the upper levels of the mall.


A brand new facade (artist impression)

Upgraded walkways (artist impression)

When completed at the end of 2004, the S$27.7 million asset enhancement (Phase 1 and Phase 2) is expected to generate an increase of S$3.9 million in NPI per year.

• Asset enhancements at Tampines Mall

Work on a new outdoor area on level 4, which comes complete with landscaped gardens and a kids’ play area, will commence in 2004. The new open plaza will occupy the previously decanted space and is expected to be completed by end 2004. This will serve as an additional space for events and activities, and the increased traffic flow to the upper levels will provide the foundation for further improvement to rental rates.


Upcoming - Open plaza on level 4, complete with landscaped gardens and
kids’ play areas

• Sustainable growth over the long term

To ensure that forecast income is on track and long term growth is in place, asset enhancement works at the malls are staggered in phases to minimise disruptions to the portfolio’s overall income stream. The chart on the right illustrates the planned commencement and completion schedules for asset enhancement works at Tampines Mall, Junction 8, Funan and IMM.

• Growth through acquisitions and investments

The Manager will actively consider and may solicit opportunities in Singapre to acquire shopping centres that meet CMT’s investment criteria and targeted returns, as long as the investments or acquisitions are yield-accretive to unitholders.

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