Frasers Property revealed that it has secured provisional permission from the Urban Redevelopment Authority (URA) to redevelop the mall to a mixed-use development.
Frasers Property has confirmed that it plans to redevelop Bedok Point mall into a residential project with commercial spaces on the ground floor, reported Channel News Asia (CNA).
In their financial results in May, the company revealed that it has secured provisional permission from the Urban Redevelopment Authority (URA) to redevelop the mall to a mixed-use development.
“We are currently working with the relevant authorities on our plans and will share the details when our plans are ready,” a Frasers Property spokesperson told CNA.
“We are looking to create a sustainable, safe and adaptable environment that enjoys greater connectivity and accessibility,” added the spokesperson.
The redevelopment follows Frasers Property’s acquisition of Bedok Point from Frasers Centrepoint Trust, which is one of its real estate investment trusts.
During the extraordinary general meeting of FCT in September 2020, shareholders asked why the mall was sold for only $108 million when it was acquired for $129 million in 2011.
To this, FCT’s manager explained that Bedok Point was bought for $127 million in 2011, but the mall’s lack of connectivity to key transport nodes and size constraints “limited its ability to be the dominant mall within Bedok town centre”.
The manager underscored that while the mall has achieved an occupancy rate of above 90% at the time, it “remains challenged” particularly with the ongoing COVID-19 pandemic.
Tenants at the mall told CNA that they were informed of the redevelopment plans earlier in the year. And while no definitive timeline was given, they believe it could happen in early 2022.
In fact, the tenants had expected the redevelopment considering the mall’s poor footfall. They noted that Bedok Point is located further away from the bus interchange and MRT station compared to Bedok mall, a larger shopping centre with residential units above.
“Existing tenants will be notified in advance on our redevelopment plans so that they are able to make their necessary business continuity plans,” said Frasers Property’s spokesperson.
Pearl Lok, Director of Capital Markets and Investment Services at Colliers International, said displaced tenants in Bedok Point may be offered spaces at Frasers Property’s other malls.
“Most typical tenancies could have redevelopment clauses that allow landlords to serve notice for these tenants to vacate the property (if) a redevelopment was to take place,” she told CNA.
“Alternatively, landlords may also allow the rental leases to expire before the redevelopment takes place.”
A redevelopment project could usually take three to four years, depending on the complexity of the project.
“The timeline may be deferred due to the current shortage of manpower and materials in the construction industry,” added Lok.
On possible reasons for the redevelopment, she said Bedok Point may not have achieved the “critical mass to attract a similar catchment” as the bigger and newer Bedok mall.
“Additionally, Bedok Point was not able to enjoy the convenience of direct access to the bus interchange and MRT station, where commuters transit and can pick up items before they move to the next location.”
Lok believes a residential-commercial development would fare better since the mall is nestled within an “attractive location in the heart of the action in Bedok”. Specifically, it is near various amenities such as polyclinic, food centres, main transport nodes and mall.
“It is most suitable for young families, as numerous primary schools are within a 1km radius from the site,” she added.
Victor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this story, email: email@example.com