Capitaland to Convert Former JCube Shopping Centre Into Mixed Development Condo
Capitaland Limited (CLD) is considering converting the former JCube shopping mall into a residential building. The move comes amid stiff competition for space from other nearby malls and a demand for residential homes in the area. Moreover, booming e-commerce has made suburban residents more attracted to shopping. Therefore, some mall consolidation is inevitable.
CapitaLand buys JCube mall for S$340m
The sale of JCube to CapitaLand Group raises the question of whether the mall will be redeveloped. Located next to Jurong Gateway, the commercial centre of the Jurong Lake District, the mall is well connected with existing and future public transport. The Urban Redevelopment Authority (URA) has envisioned the area as the city’s largest outside-the-CBD business district, and an anchor for the western gateway. In addition, JCube enjoys good connectivity to the Jurong East MRT interchange station, which serves the existing line as well as the Jurong Region Line. The mall is also well connected to a future integrated transport hub, which will consist of community institutions and a bus interchange.
As for the deal’s terms, CapitaLand Integrated Commercial Trust (CLIT) announced a DPU of S$0.0522 for the first half of 2012. The DPU is composed of advance distributions of S$0.0485) for the period from 1 Jul to 15 Dec 21 and S$0.0037 for the period from 16 to 31 Dec 21.
Redevelopment plans for JCube
The JCube Shopping Centre is set to undergo a major transformation in the coming years. The property will be transformed into a mixed-use development encompassing residential and commercial spaces. The development will be built by CapitaLand Development, the company that bought the mall from CapitaLand Integrated Commercial Trust. According to the URA, the proposed development would be more than twice as large as the existing mall’s plot. In addition, the new development would have a plot ratio of 4.2, compared to the current plot ratio of 3.0.
A spokesperson for CapitaLand Development says the property is not yet finalised. The company is still exploring various options to transform the JCube. The first step will be to consider the potential use of the property. A large part of the plan will involve building a new mall containing more retail space than the current JCube. The company is also looking at the possibility of building a residential complex on the site.
Future of JCube mall
CapitaLand has appointed Rapp to create a campaign to launch the new JCube mall, which is scheduled for completion in the first quarter of 2012. OMD will handle media planning for the mall. The JCube mall will feature five levels of retail space and a rooftop plaza with landscaped elements. It will also house an Olympic-size ice rink.
The redevelopment of JCube mall has received approval from the Urban Redevelopment Authority. This will result in an increase in the ratio of the mall’s plot to the rest of the Jurong area. Meanwhile, CapitaLand Development is also looking at repositioning the mall and making it more attractive for shoppers. For now, the mall is home to The Rink, one of only two ice skating venues in Singapore.
Impact of competition from nearby malls
The transition of retail space from a traditional shopping center to a mix-use development has proved to be a successful model in many areas coast-to-coast. The key is to ensure that the mix of uses is right for a particular community. For instance, an area that has a shrinking population and a declining job market may benefit from the addition of non-traditional uses such as apartments. Another example is the Phipps Plaza in Atlanta, which is both an apartment building and a shopping mall.
The study examined 208 guiding research articles on TOSMDs to understand how these developments could influence the mix of use and development of nearby malls. It also explored the relationship between these developments and nearby rail transit stations. It found that the location of TOSMDs could influence the location of nearby malls, and proximity to population growth and commercial growth could affect the amount of space occupied by a mall.
Cost of conversion
Developer CLD is considering the conversion of the former JCube Shopping Centre to a residential project, citing stiff competition from other shopping centres and the strong demand for residential units in the area. According to Seshan Ramaswami, associate professor of marketing education at Singapore Management University, the proposed development will feature mixed use, a brewery concept, and a greater plot-to-floor ratio than the current JCube.
JCube Shopping Centre was built in 2012. It’s one of the four malls in Jurong East Central and is owned by CapitaLand, along with Westgate, IMM, and JEM. Due to stiff competition from these other malls, JCube was rezoned and is now a mixed-use development. In 2014, it opened a second-floor shopping mall called J.Avenue featuring 70 shops. Its occupancy rate has been reported to be as high as 95.5%, with a total of 2,557 condos planned.
Plans for mixed-use residential component
The former JCube Shopping Centre in Jurong is being redeveloped to add a mixed-use residential component. The development comprises five storeys plus three basement levels, as well as a roof garden. It has a total net lettable area of 210,038 sq ft, and is owned by JLL, the head of capital markets in Singapore.
Plans for redevelopment of the former JCube Shopping Centre have been approved by the Urban Redevelopment Authority. The proposed development will have a commercial component on the first storey and residential apartments above. CapitaLand Development, which bought JCube from the CapitaLand Integrated Commercial Trust, will build the development. The proposed development will be larger than the former JCube plot. It would have a plot ratio of 4.2, compared to 3.0 for the existing JCube.