SINGAPORE, 14 December 2018 – Colliers International (NASDAQ and TSX: CIGI), a global leader in commercial real estate services, is pleased to announce that it has been recently appointed as the leasing and tenancy manager for two prominent retail properties – Stars of Kovan in Upper Serangoon Road and *SCAPE in Orchard Link - further entrenching its Real Estate Management Services business in Singapore.
Colliers will provide leasing and tenancy management including marketing and retail advisory services for the two properties, with the aim of managing the leasing strategy, curating their respective tenant-mix profiles, driving footfall and elevating customer experience, as well as injecting vibrancy to the commercial spaces.
Mr. Tang Chee Charn (邓子灿), Executive Director and Head, Real Estate Management Services at Colliers International, said, “The retail property sector is one of the focus areas for our business growth as retailing becomes increasingly more competitive, differentiated, and customer-centric. We expect that there will be an increase in demand for bespoke strategy to enhance customer experience, maintain shopper traffic, retain and attract tenants, and integrate new technologies to transform the overall retail offering. Our team of experienced industry professionals, who are deeply committed to understanding clients’ needs and requirements, will formulate effective and strategic solutions to help improve the capital value of our clients’ real estate assets and also enhance building-user experience.”
Stars of Kovan: Unique real estate approach for a strata mall
Colliers was appointed as the leasing and tenancy manager for the strata-titled commercial space at Stars of Kovan by its developer Property Enterprises Development (Singapore) (“PED”), a member of CK Asset Group in November 2018.
Stars of Kovan, an upcoming mixed development comprising 395 residential units with 46 retail shops at the street level is expected to obtain its Temporary Occupation Permit in the second quarter of 2019. Sizes of the 46 retail units range from 26 square metres (approximately 280 square foot) to 80 sq m (approximately 861 sq ft). Majority of the commercial spaces will be dedicated to retail and takeaway-food shops.
In appointing Colliers to lead the leasing and marketing of the commercial units, PED has embarked on a targeted strategy, especially for a strata-retail space to create a competitive and selective tenancy mix for the 2,500 sq m (approximately 26,910 sq ft) commercial podium.
Mr. Francis Wong (黄思聪), Director of Property Enterprises Development (Singapore), said, “We are pleased to appoint Colliers, one of the world largest real estate management company with a highly skilled and experienced team to take care the leasing and management of Stars of Kovan. By leveraging Colliers market-leading professional retail experience, and outstanding perspective on local markets and global trends, we strongly believe the best tenant mix will maximise the value and quality of the shops' owners. PED will be undertaking an innovative leasing approach for a strata-titled mall in that we are playing an active role in curating the retail offerings.”
In most strata-titled malls, developers would typically sell retail units to individual investors and leave them to rent out the space as they deem fit. This approach could potentially lead to a sub-par tenant-mix as there is no centre management to oversee the leasing process. The absence of a central body to coordinate advertising and promotion efforts may also hamper sales and footfall.
Mr. Andy Oon (温成兴), Director, Real Estate Management Services at Colliers International, said, “PED’s approach to managing strata retail mall for the individual buyers is a good and welcomed move amid the evolving retail landscape. Colliers looks forward to playing a key role in helping to spur the success of the Stars of Kovan mall through various advertising and promotion efforts, aimed at raising the mall’s profile and to drive footfall.”
Stars of Kovan, an iconic premiere shopping atrium, is located within 2-minutes’ walk from Kovan MRT Station on the North-East Line and has a wide frontage, boasting high visibility along the main thoroughfare of Upper Serangoon Road and Tampines Road. It is expected to serve a resident population of about 60,000 – majority of them living in private apartments and landed homes - within the Kovan neighbourhood, with a wider population catchment of more than 340,000 residents in the Serangoon and Hougang districts.
*SCAPE: Tap the rise of the millennials
Colliers - appointed as the leasing and tenancy manager for *SCAPE by non-profit organisation *SCAPE Co. Ltd in September this year – is tasked with rejuvenating the lifestyle venue, which was set up in 2007 in response to a call for more community and recreational spaces where youths can visit, socialise, and showcase their talent.
Mr. Oon added, “Youth culture and needs have evolved dramatically over the past decade. The highly tech-savvy millennial consumers today are hungry for new experiences; they embrace digital connectivity, value authenticity, and appreciate well-designed communal spaces. Retailers and landlords will have to similarly evolve and update their strategy to appeal to this group of customers. We envisage *SCAPE to be a hip and exciting venue with a wide range of attractive experiential offerings, be it is music, dance, sports, gaming or F&B.”
As part of the appointment, Colliers will manage *SCAPE’s lease portfolio to boost *SCAPE’s position as a youth-hub destination that inspires youth and supports leadership development. *SCAPE, prominently located in the heart of the Orchard Road shopping precinct and near the Somerset MRT station has a total net lettable retail area of 4,260 sq m (approximately 45,854.26 sq ft).
Driving digital transformation
The shift in the retail business environment and an increasing need to better understand customers have made a case for retail analytics, and technologies such as big data and artificial intelligence will give retailers a competitive edge.
Working with third-party partners, Colliers is also spearheading digital transformation at Stars of Kovan and will be working with *SCAPE to explore the introduction of smart technologies, including sensors and camera-based platforms which will enable retailers and landlords to track footfall, monitor buying behaviour, and gain in-depth information on how shoppers navigate the mall. From a mall management perspective, the new technologies can also bring about greater efficiency and boost the productivity of property managers on-site.
Mr. Tang added, “Real estate management services will increasingly become an important part of the retail ecosystem - playing a strategic role in supporting business demands, helping to enhance the customers’ overall experience at the mall, and preserving the value of the property. Colliers will proactively engage retailers and landlords in the design and execution of customised and integrated retail real estate solutions for the digital age.”