CapitaLand, CMA and CMT unveil $1.5b Jurong project

Published 2 June 2011
The Business Times
By Emilyn Yap

CAPITAMALLS Asia (CMA), CapitaMall Trust (CMT), and CapitaLand will be developing a 25-storey retail- cum-office project on a site at Jurong Gateway which they won in a tender.

CapitaLand, CMA and CMT unveil $1.5b Jurong projectThe total development cost is expected to come up to around $1.5 billion. The partners had put in the top bid of $969 million or $1,012 per square foot (psf) per plot ratio for the site.

The project will be among several new ones coming up in the area. Next door, a mixed-use development by Lend Lease is on the way.

CMA, CMT, and CapitaLand believe that their plot is the ‘most prime’ in Jurong Gateway. Behind their confidence is its connectivity – the new building will have links to Jurong East MRT station, bus interchange, and Ng Teng Fong hospital.

‘It’s a place that everybody must pass through if they’re in Jurong Gateway,’ said CMA CEO Lim Beng Chee.

Of the maximum permissible gross floor area of 957,780 sq ft, 60 per cent will be set aside as retail space. The mall is likely to take up five levels and may open its doors in time for the Christmas shopping season in 2013.

The project partners are expecting rents to be in the range of $16-18 psf. There are no plans to sign up anchor tenants because there will be large retailers in IMM and JCube – malls in CMT’s stable – and also in Lend Lease’s development, they said.

JCube, which is expected to open in the first quarter of next year, is more than 70 per cent pre- leased.

Offices – spanning 20 storeys – will take up 40 per cent of the project and may be ready in December 2014.

The partners are looking to incorporate regular- size column-free floor plates in the design and they believe rents can go up to $8 psf.

There is a lack of quality offices in Jurong and the development will fill a market void, said CEO of CMT’s manager Simon Ho.

Target tenants include government agencies, medical firms, and multinational corporations in the energy and marine sectors with operations in Jurong Island and Tuas.

The government is promoting Jurong Lake District as a new major regional centre and has released sites in the area for sale. Last year, Lend Lease won the tender for its plot with a bid of $650 psf ppr.

CMA, CMT, and CapitaLand note that Jurong Gateway is 2.5 times the size of Tampines Regional Centre and has a catchment of one million residents in the surrounding towns.

On the stock market yesterday, CMA gained three cents to close at $1.63, CMT lost a cent to $1.99, and CapitaLand rose two cents to $3.11.

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