Charging Bull
July 8th, 2006, 06:10 PM
Reawakening a sleeping Beauty
Market talk of en-bloc sale and redevelopment of ageing property
Jane Chiapoco
janec@newstoday.com.sg
Something is astir in Sleepy Hollow, er, Beauty World Plaza in Upper Bukit Timah.
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Market talk has it that a certain well-known developer, which has a mixed portfolio of projects, has been buying up units in the ageing shopping centre. This could be in anticipation of a potential collective sale of the site.
.
"I notice that a large listed developer is neither selling nor renting units on different floors," said Ms Serene Teng, division director of Dennis Wee Properties.
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"I anticipate that it will go en bloc, and someone will come in to build a bigger and taller building," she said, adding that the developer she was referring to has other developments and properties in the Bukit Timah area.
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Another sign that points to a potential en-bloc sale is the appointment early this year of Knight Frank Estate Management as the managers by Bukit Timah Plaza's management committee.
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However, neither Knight Frank nor Beauty World Plaza's management committee were willing to talk to Today about plans for the site, which appears mostly empty. That's a far cry from 24 years ago, when the mall could hold its own against its more commercially active neighbours Beauty World Centre and Bukit Timah Shopping Centre.
.
The place, which Ms Teng described as a once thriving shopping hub, is now only a shadow of its former self.
.
"Around 30 years ago this was a vibrant place," Ms Teng said. "Now most of the shops, even the ground floor ones, which are normally in demand, are closed."
.
At the height of its commercial viability from 1993 to 1997, it was the norm to buy multiple units in the shopping centre, said Ms Teng. Over the years, some owners gradually sold off a number of units, but kept two or three.
.
The majority of the commercial units are privately owned. Far East Organization owns less than 10 of the units. Apartment units make up the fourth to eighth floors.
.
The 999-year land lease for the site started in 1884. Beauty World Plaza is a bargain for buyers now since its lease term is as "good as freehold", making anything below $400,000 a "steal", said Ms Teng.
.
A 204.5-square-feet first floor unit recently sold for $160,000. Rental rates are about $3.75 per sq ft or $750 a month for a 200 sq ft shop on the second floor.
.
On several visits there over the past few months, Today saw only a few office workers and residents of the upper storey apartments entering the forlorn building. Inside, there are three floors of mostly vacant offices and residential units for rent.
.
The remaining tenants of the building, such as Ms Priscilla Pang, stay there for convenience. The operations manager of Rockbell International Software, a Malaysian accounting software company, chose it because she lives nearby and used to own a boutique there 13 years ago. The low rentals are another draw.
.
Ms Pang pays $800 a month for a 200- sq-ft office inside the building, and $1,000 for a 280-sq-ft space facing the street.
.
"In 1993, rentals used to be very expensive," said Ms Pang. "But now it is very cheap because it feels like a ghost town. I think they might go en bloc," she added.
.
"I think the place is empty because there are no retail shops here to bring in shoppers," said Ms Doris Goh, administrative staff at Creative Study Concepts.
.
"Some of our clients may come in and be worried at first because the building looks quite deserted, but they ultimately find out that it is safe." She said the surrounding office spaces are usually used for occasional staff meetings.
.
A tailoring and alteration shop and a movie rental store are among the few open businesses benefiting from the higher visibility on the ground floor. A branch of Hong Leong Finance and a Chinese handicraft store at opposite ends of the first floor also have unblocked frontage.
.
"If some of the businesses here move to more vibrant shopping centres, they would face more competition and higher rentals," Ms Teng said.
.
However, movement could flow the other way if Beauty World Plaza catches a possible tenant spillover from the thriving row of food-and-beverage establishments directly across it at Cheong Chin Nam Road.
.
Revitalisation of Beauty World Plaza may also depend on cultivating a niche retail space or promoting a theme, according to Mr Wallace Chu, senior manager of Research and Consultancy for Savills.
.
"It is hard to maintain the spirit of business sometimes, especially if a building is strata-titled," Mr Chu said. "Each owner might have an individual agenda, making it difficult to think collectively."
Market talk of en-bloc sale and redevelopment of ageing property
Jane Chiapoco
janec@newstoday.com.sg
Something is astir in Sleepy Hollow, er, Beauty World Plaza in Upper Bukit Timah.
.
Market talk has it that a certain well-known developer, which has a mixed portfolio of projects, has been buying up units in the ageing shopping centre. This could be in anticipation of a potential collective sale of the site.
.
"I notice that a large listed developer is neither selling nor renting units on different floors," said Ms Serene Teng, division director of Dennis Wee Properties.
.
"I anticipate that it will go en bloc, and someone will come in to build a bigger and taller building," she said, adding that the developer she was referring to has other developments and properties in the Bukit Timah area.
.
Another sign that points to a potential en-bloc sale is the appointment early this year of Knight Frank Estate Management as the managers by Bukit Timah Plaza's management committee.
.
However, neither Knight Frank nor Beauty World Plaza's management committee were willing to talk to Today about plans for the site, which appears mostly empty. That's a far cry from 24 years ago, when the mall could hold its own against its more commercially active neighbours Beauty World Centre and Bukit Timah Shopping Centre.
.
The place, which Ms Teng described as a once thriving shopping hub, is now only a shadow of its former self.
.
"Around 30 years ago this was a vibrant place," Ms Teng said. "Now most of the shops, even the ground floor ones, which are normally in demand, are closed."
.
At the height of its commercial viability from 1993 to 1997, it was the norm to buy multiple units in the shopping centre, said Ms Teng. Over the years, some owners gradually sold off a number of units, but kept two or three.
.
The majority of the commercial units are privately owned. Far East Organization owns less than 10 of the units. Apartment units make up the fourth to eighth floors.
.
The 999-year land lease for the site started in 1884. Beauty World Plaza is a bargain for buyers now since its lease term is as "good as freehold", making anything below $400,000 a "steal", said Ms Teng.
.
A 204.5-square-feet first floor unit recently sold for $160,000. Rental rates are about $3.75 per sq ft or $750 a month for a 200 sq ft shop on the second floor.
.
On several visits there over the past few months, Today saw only a few office workers and residents of the upper storey apartments entering the forlorn building. Inside, there are three floors of mostly vacant offices and residential units for rent.
.
The remaining tenants of the building, such as Ms Priscilla Pang, stay there for convenience. The operations manager of Rockbell International Software, a Malaysian accounting software company, chose it because she lives nearby and used to own a boutique there 13 years ago. The low rentals are another draw.
.
Ms Pang pays $800 a month for a 200- sq-ft office inside the building, and $1,000 for a 280-sq-ft space facing the street.
.
"In 1993, rentals used to be very expensive," said Ms Pang. "But now it is very cheap because it feels like a ghost town. I think they might go en bloc," she added.
.
"I think the place is empty because there are no retail shops here to bring in shoppers," said Ms Doris Goh, administrative staff at Creative Study Concepts.
.
"Some of our clients may come in and be worried at first because the building looks quite deserted, but they ultimately find out that it is safe." She said the surrounding office spaces are usually used for occasional staff meetings.
.
A tailoring and alteration shop and a movie rental store are among the few open businesses benefiting from the higher visibility on the ground floor. A branch of Hong Leong Finance and a Chinese handicraft store at opposite ends of the first floor also have unblocked frontage.
.
"If some of the businesses here move to more vibrant shopping centres, they would face more competition and higher rentals," Ms Teng said.
.
However, movement could flow the other way if Beauty World Plaza catches a possible tenant spillover from the thriving row of food-and-beverage establishments directly across it at Cheong Chin Nam Road.
.
Revitalisation of Beauty World Plaza may also depend on cultivating a niche retail space or promoting a theme, according to Mr Wallace Chu, senior manager of Research and Consultancy for Savills.
.
"It is hard to maintain the spirit of business sometimes, especially if a building is strata-titled," Mr Chu said. "Each owner might have an individual agenda, making it difficult to think collectively."