www.shaproperty.com

CAPITALAND is poised to gain a monopoly of malls in the Ang Mo Kio-Bishan area. BT understands that the property giant's retail division is the front-runner to win the contract to manage the upcoming shopping centre in Ang Mo Kio central, which is expected to open in March next year.

New hangout: Only half of the mall's space will be open to retailers as at least half must be taken up by SLF, NTUC or their affiliates and other non-profit institutional users

Together with Junction 8 in Bishan, CapitaLand will operate two malls within one train stop from each other.

The mall in Ang Mo Kio, now under construction, is being jointly developed by the Singapore Labour Foundation (SLF), NTUC Income and NTUC FairPrice.

SLF acquired the site for the mall from the government at a reduced rate in 2002 after bypassing the usual bidding process - a move that drew fire from developers and retailers.

In response, the Singapore Land Authority, the Urban Redevelopment Authority and the SLF explained that the land was directly sold to the SLF at a 'fair market value' because 40 per cent of the development would comprise public and non-institutional uses.

SLF had originally planned to build a 31-storey condominium on the 2.57 ha site, alongside an office block and a new air-conditioned bus interchange. But in 2004, it said that it would construct 'an integrated shopping mall-cum-bus interchange' instead.

The project is now on the verge of completion. The mall will have a gross floor area of 48,250 sq m, and the net lettable area is estimated to be 32,500 sq m.

Construction is due to be completed by the first quarter of next year, and most of the shops will be open by March, said Knight Frank property consultancy. The grand opening is scheduled for May.

The project will be managed by SLF Management Services, which together with Knight Frank is now looking for tenants. Knight Frank confirmed that the mall is on the lookout for a professional mall management company.

Whoever runs the mall will be restricted by conditions that came with the subsidised price tag.

At least 50 per cent of space has to be let out to the SLF, the National Trades Union Congress (NTUC) or their affiliates and related organisations, private companies majority-owned either individually or jointly by SLF, NTUC, its affiliates and other related organisations, other non-profit institutional users, and users of the bus interchange.

The new mall is expected to face stiff competition from Junction 8, which has established itself as the suburban mall of choice for shoppers in the area.

To overcome all this, the new mall will be marketing itself differently - as a place to cater to everyone in the family. There will be a 'learning hub', which could take up an entire floor. And another floor could be devoted to entertainment, with plans under way for an eight-screen cineplex.

Knight Frank also hopes to line up an exciting retail landscape for residents of Ang Mo Kio, despite being able to devote only half of the mall to retail.

Retail group RSH (formerly known as Royal Sporting House), which distributes labels such as Mango and Bebe in Singapore, and Esprit could both open stores within the shopping centre.

NTUC's FairPrice will be one of the anchor tenants, operating a 7,110 sq m hypermarket.