Arguably already Orchard Rd’s most luxurious shopping mall, Paragon is undergoing an enhancement program to boost its premium positioning.
SPH REIT Management, the manager of Paragon Orchard Rd parent SPH REIT, has reported $1.5 million increase in gross revenue for the first quarter to November 30, up 2.9 per cent to $52.1 million, on the back of higher rental income. Paragon’s occupancy rate was 99.8 per cent, the tiny fraction of unleased space explained by the reconfiguration of some space to create a larger tenancy.
SPH REIT said Paragon continued to see healthy leasing demand during the quarter and welcomed several international retailers such as Loewe, Ralph Lauren Children, Lalique, and APM Monaco to the mall.
“Emporio Armani has also pre-committed to take up part of the reconfigured space at level one from the Air Handling Unit (AHU) decanting project,” the company said in its stock exchange filing.
“The manager remains focused on its effort to revitalise the tenant mix, strengthen various clusters and enhance the premier positioning of Paragon.”
SPH REIT also owns the Clementi Mall. With proactive management of expenses, net property income for both malls was $40.1 million – $2.2 million, or 5.9 per cent, higher than during the same period last year.
“Both properties continued to demonstrate resilience and achieved positive rental reversion,” the company reported.
“The relatively moderate rental uplift at Paragon of 3.2 per cent for new or renewed leases in Q1 was mainly due to the prevailing weak retail sentiment. The Clementi Mall remained fully leased, with positive rental reversion of 5.4 per cent for renewal during the quarter.”
Susan Leng, CEO of SPH REIT said the company will continue to build firm partnerships with tenants and pursue opportunities to reinforce the positioning of its properties.
“The AHU project at Paragon is progressing on schedule. We have identified an asset enhancement initiative for The Clementi Mall which will create a more efficient layout and increase the range and depth of merchandise to drive higher sales.
“Both projects will create value and strengthen the long-term sustainability of the properties. We are confident that our philosophy of continual asset enhancement will sustain future performance,” Leng concluded.
