CapitaLand Integrated Commercial Trust (CICT), on July 26, announced that it will be transforming Clarke Quay into a day-and-night destination with a $62.0 million asset enhancement initiative (AEI).
The iconic riverfront dining and lifestyle hub, which is owned by the REIT and managed by CapitaLand Limited (CLI), is currently regarded as a nightlife attraction only.
The AEI will include improving the daytime thermal comfort of the property’s inner streets. Tenants with “an exciting blend of lifestyle and food and beverage (F&B) concepts” that best utilise the reinstated godown typology of the conserved warehouses at Block B will be introduced as well.
After the AEI, Clarke Quay will be remarketed as CQ @ Clarke Quay. It will comprise three main zones that offer riverside dining in an alfresco or heritage shophouse setting, a blend of retail lifestyle and F&B concepts and “high-energy concepts” as well as entertainment.
Names under the AEI include FairPrice Finest, beauty salon and pottery-themed café Catching the Waves, Seafood Paradise, Zouk Group and 1-Group.
According to the REIT, pre-commitment from tenants and leases in advanced negotiations have reached over 70% of CQ @ Clarke Quay’s net lettable area to date.
See also: CICT's manager proposes to acquire ION Orchard at $1.85 billion, subject to EGM
CQ @ Clarke Quay will continue to operate throughout the AEI, which will be carried out in phases from 3Q 2022 to 3Q 2023.
“Along with acquisitions and divestments, AEIs are part of CICT’s multi-pronged portfolio reconstitution strategy to rejuvenate and create more value in our portfolio. The repositioning of CQ @ Clarke Quay is a timely move that will broaden its appeal to families in tandem with the urban renewal of the Singapore River precinct to incorporate more leisure amenities and residential developments, such as the 696-unit CanningHill Piers sited adjacent to CQ @ Clarke Quay,” says Tony Tan, CEO of CICT’s manager.
“In addition, the property income is expected to be sustainable on a stabilised basis post pandemic and after the AEI. We are also pleased to take this opportunity to upgrade the green rating of CQ @ Clarke Quay, upon which all 21 properties in our Singapore portfolio would have achieved a minimum rating of BCA Green Mark Gold,” he adds.
See also: CICT's manager proposes to acquire ION Orchard at $1.85 billion, subject to EGM
Chris Chong, CEO of retail & workspace (Singapore & Malaysia), CLI, says, “As Singapore eases its Covid-19 community measures and reopens its borders, we have been actively positioning our downtown properties to welcome the return of more shoppers and tourists with experiential lifestyle concepts and vibrant community events.”
“We are confident that the transformation of CQ @ Clarke Quay into a day-and-night destination with a wide range of lifestyle and F&B offerings enjoyed in beautiful riverfront and heritage settings will become a key highlight in the rejuvenation of the Singapore River precinct. It will also complement and generate new synergies with CapitaLand’s other downtown properties. We look forward to working closely with our tenants to ensure that the revamped CQ @ Clarke Quay continues to be globally known and locally loved, popular with both tourists and locals,” Chong adds.
As at 4.57pm, units in CICT are trading at $2.14 while shares in CLI are trading at $3.88.
