COMMERCIAL PROPERTY | Staff Reporter, Singapore

Funan Mall's redevelopment to be completed before 4Q2019

This shows a potential boost for CMT’s 2018 profit.

OCBC Investment Research reported that Capitaland Mall Trust (CMT) Funan Mall’s redevelopment may be completed ahead of its initial 4Q2019 target, showing a potential to boost CMT’s profit as it gains a higher number of enquiries.

Singapore Business Review previously reported that Funan Mall dragged CMT’s gross revenue when it stopped its operations for redevelopment since July 2016.

Further, CMT’s average occupancy cost decreased to 18.7% YoY in 2017, whilst rental reversions fell by 1.7%. Its portfolio occupancy also remained high at a rate of 99.2%.

CMT’s shopper traffic decreased 0.3% in 2017, while tenants’ sales per square foot per month (psf/mth) remained stable.

OCBC also reported a forecast of 1.4% increase in CMT’s 2018 net property income.

Here’s more from OCBC:

CMT is hoping to achieve a pre-commitment level of 70% by year end. It remains on track to meet or even exceed its 6.5% ROI target. Encouragingly, management also pointed out that it has seen an improvement in discretionary spending at its malls.

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