s president of business operations, Mr Suhaimi Rafdi, told The Straits Times yesterday that the new rebates were planned 'way before' and not a result of the tenants' letter, of which he said he was unaware. 'Like all new malls that offer rebates to tenants, we embarked on the same approach,' he said. 'We are fairly surprised by any unhappy tenants as we have already extended a second phase of rebates.'
The Straits Times understands that nine of the mall's 20 tenants wrote to the mall's marketing and leasing department in August, raising concerns about slow business and asking for some form of assistance.
A reply came two weeks later, saying that the landlord would be 'evaluating the matter seriously'. It was later announced that new and existing tenants would get a 50 per cent rebate on rent for next month and December.
This is on top of an initial round of rebates between May and this month. Tenants got a 50 per cent rebate in May, 40 per cent in June, and so on until the rebate hit 5 per cent this month.
Rents are now at about $15 per sq ft (psf) for a third-floor unit to more than $20 psf for a ground-floor unit.
This compares with an overall average of slightly over $10 psf for nearby Plaza Singapura, about $33 psf on average for prime Orchard Road space and between $5 psf and $30 psf for VivoCity, another newly opened mall.
Most of the 10 Cathay tenants that The Straits Times spoke to yesterday said that while they were grateful for the additional rebates, these provided only short-term relief and were not a solution in the long run.
Many also noted that tenants at VivoCity - which opened on Oct 7 and is 93 per cent leased out and 70 per cent occupied - are enjoying similar rental rebates despite booming business.
'When we signed the lease, they told us the mall would be 70 per cent occupied by mid-June,' said Mr Luke Elijah Lim, who invested $150,000 in his start-up boutique, To-a-tee, on the third floor of The Cathay.
'But even now, most of the time it's a dead town. They promised us big-name tenants that never came.'
Mr Shenzi Chua, who runs NewUrbanMale on the ground floor, said he thinks the mall 'has great potential', but 'the continuous effort to bring in more and the right group of people has somehow stopped somewhere'.
Tenants such as Ms Grace Ng, owner of premium stationery boutique Wood Would, spoke of being 'demoralised' by poor business. 'This place is not functional; there is no convenience store, no pharmacy, not even an ATM,' she said.
Property experts yesterday said The Cathay's difficulty in attracting new tenants may lie in its location, visibility and shortage of existing tenants.
'It is a little bit off the main Orchard Road, and you don't really see it performing up to par right now because the occupancy is not there yet,' said one retail consultant.
Mr Danny Yeo, executive director of Knight Frank, said malls should open with at least 90 per cent occupancy 'to give them a chance to survive'.
This is 'so that when promotions and events are organised to draw the crowd, they won't come to find a half-empty mall'.
fiochan@sph.com.sg
RENT RELIEF
New and existing tenants of the mall will get a 50 per cent rebate on rent for next month and December. This is on top of an initial round of rebates between May and this month. Rents are now at about $15 per sq ft (psf) for a third-floor unit to more than $20 psf for a ground-floor unit. This compares with an overall average of slightly over $10 psf for nearby Plaza Singapura, about $33 psf on average for prime Orchard Road space and between $5 psf and $30 psf for VivoCity, another newly opened mall.
