The Housing and Development Board (HDB) is currently in search of a potential buyer for a mall located inside the Clementi Town Centre. HDB is building the said mall as part of a bigger 40-storey project that will include a bus interchange aside from two blocks of flats.

The mall has five storeys above ground and two basement levels. Its maximum net floor area is 193,750 square feet or 18,000 square metres of retail space.

The Board is constructing only the façade and the core structure and it intends to hand the mall over to the eventual purchaser by August 2010 who will then finish the construction internally. Aside from having naming rights, the new owner will also have complete flexibility to set up the mall’s theme and layout.

Jones Lang LaSalle estimates that the buyer may to need spend approximately $50 million more to furnish the mall. Assuming that the purchase price is $300 million, JLL assesses that the total investment would be about $1,800 per square foot of retail net floor area. This figure does not yet take into account the fifth level’s 21,266 square feet of gross floor area, which is set aside for use as a library for civic and community institution purposes.

Assuming that the gross average rent per month of $11 per square foot is attained for the mall, the investor’s net yield would work out to approximately 6 percent. The eventual buyer will acquire a new 99-year leasehold once HDB hands the property over.

A bus interchange will constructed be on the first level of the mall, and a link will be constructed between mall’s third level and MRT’s Clementi Station.

“This investment provides a rare opportunity to enter the tightly held and much sought-after suburban retail mall market in Singapore. The buyer will be able to add real value through its retail concept and layout,” Chris Fossick, Jones Lang LaSalle's managing director for Singapore and South-east Asia, said.

The bidding for the Clementi mall closes on 10 Nov 2009.

Yesterday, HDB said that this is the first project that incorporates commercial facilities, a bus interchange and public housing units in one complex.

There will be 388 units of three- to five-bedroom flats in the two housing blocks, most of which have been taken up already by HDB lessees who are affected by a nearby Selective En-bloc Redevelopment Scheme (SERS).

“There are very few unsold flats in the two blocks,” a spokesman for HDB said. “After meeting demand for SERS, the balance of the flats will be released to the public in future sale exercises.”
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