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Master Tenant Toshin
Toshin Development Co., Ltd (Toshin) accounted for
67% of gross revenue and 57% of the Net Lettable
Area (NLA) in the Ngee Ann City Property as at
December 2007. Toshin is a wholly-owned subsidiary of
Takashimaya Company Limited, which is listed on the
Tokyo Stock Exchange. The company is a strong and
credible retail operator with over 40 years of experience
in the development, operation and management of
shopping malls. As a master tenant, Toshin leases retail
space from Basement 2 to Level 4 of the Ngee Ann
City Property and sublets the space to a host of retailers
in the various trade sectors. Toshin also manages all
the other specialty areas in Ngee Ann City, ensuring
consistency of branding and positioning of the entire
mall. MMP REIT’s long-term master lease with Toshin
expires in June 2013 with an option to renew for
12 years. The master lease provides for a rent review
every three years with the next review coming up in
June 2008. The lease is beneficial to MMP REIT as it
provides long-term income stability with the potential
for rental upside.
In 2007, Toshin renewed the leases of many of its
luxury retail tenants such as Louis Vuitton and Chanel,
strengthening the high-end positioning of the mall for
more years to come. Flagship stores such as Cartier
and Celine also revamped their stores to their latest
international concepts. In a move that will bring even
more cheer to fans of high-end fashion, Toshin also
revamped and repositioned the Level 2 of Ngee Ann
City to feature more top international brands such as
Van Cleef & Arpels, La Perla, Marc by Marc Jacobs,
Stella McCartney and Chloé.
Going forward, Louis Vuitton and Chanel plan to double
the size of their flagship stores in Ngee Ann City, creating
brand new two-storey concept duplexes of close to 10,500
square feet and 7,000 square feet respectively. Fashion
brand Hugo Boss will consolidate its 2,600 square feet
men’s boutique on Level 1 and its 4,600 square feet
women’s and men’s leisure wear store on Level 3 into
a 7,000 square feet flagship outlet on Level 1. Jeweller
Tiffany & Co will also embark on renovation plans in the
middle of 2008 for its 6,000 square feet duplex in response
to high customer traffic and sales revenue.
Level 5
MMP REIT actively manages the retail space on
Level 5, covering an area of approximately 30,000
square feet. To complement the shopping experience on
lower floors, tenants on Level 5 offer a variety of services
covering beauty & wellness and education. The lease
with National Library Board for the library@Orchard
will expire in February 2008. In its place, the 16,781
square feet of space will be reconfigured into smaller
units for lease to new retailers in the beauty & wellness
trade and other service trades.
Advertising and Promotion
Ngee Ann City is the venue of choice for events and
activities, given its prime location in the heart of
Singapore’s major shopping belt. The large event hall,
Takashimaya Square, plays host to regular bazaars and
fairs that draw throngs of shoppers. With a capacity
for over 3,000 people, the large outdoor semi-circular
Civic Plaza is an extremely popular venue for many
prestigious events including concerts, fairs, product
launches, roadshows, fashion showcases, carnivals
and lifestyle launches. In 2007, these included the
Singapore Fashion Festival, the Jewel Festival and the
Subaru Challenge.
NAC Occupancy Rates (%)
Office
Retail
80
82
84
86
88
90
92
94
96
98
100
As at 31 Dec 2006
As at 31 Dec 2007
%
98.6% 98.5% 100% 100%
THE NGEE ANN CITY PROPERTY
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