Low occupancy at Suntec City Mall Phase 3 threatens stellar Suntec REIT
Committed occupancy stands at just 70%.
Suntec REIT’s stellar results are at risk from lower-than-expected occupancy at Suntec City Mall Phase 3.
According to OCBC, the mall’s committed occupancy stood at just slightly above 70% at the end of 2014, a rather low number considering its aggressive asset enhancement initiatives.
“This is a concern to us as TOP is expected to happen soon. We believe progress has been hampered by the tough leasing environment due to retail sector headwinds. Overall committed occupancy for all phases of the Suntec City AEI was 91.3%, with a committed passing rent of S$12.27 psf pm,” stated OCBC.