Retail real estate sluggish: DTZ

SINGAPORE

Average prime rental rates along Orchard Road and Scotts Road remained unchanged in the third quarter, the firm said.

For the third straight quarter, gross rents of prime first-storey space in the area stayed at $39.70 per square foot per month.

Rents in other areas in the city continued to decline. Prime first storey rents in these areas fell by 0.8 per cent to $24.10 per square foot per month.

Monthly gross rents of prime first-storey retail space in the suburban malls, meanwhile, were unchanged at $33.60 per square foot per month.

DTZ said the new supply of retail space last year led to a competitive environment, which did not support any increase in rentals.

Some 1.3 million sq ft of new retail space became available last year.

Other than the newly-completed and pipeline supply that have put a lid on rentals, the two new integrated resorts also had an impact, DTZ said.

The integrated resorts siphoned off some demand for shopping as more people spend time and money at the casinos instead of at the malls, it noted.

But with a robust economic recovery taking place, DTZ said retail rents should increase gradually next year as the new supply is eventually absorbed.— Singapore’s retail real estate continues to be dogged by supply pressure, according to property consultancy DTZ.

GIC's logistics unit sets price of S$1.78-$1.96 for IPO shares
By Jonathan Peeris | Posted: 27 September 2010 2051 hrs

	Photos 1 of 1

SINGAPORE : The Government of Singapore Investment Corporation (GIC) has said its logistics arm could seek to raise as much as S$3.9 billion in its initial public offering.

This would make it the country's second-biggest IPO.

Global Logistic Properties has set an indicative price range of S$1.78 to S$1.96 per share.

According to its prospectus, the IPO will comprise up to nearly two billion shares, including for cornerstone investors and over-allotment.

The IPO opens on October 11 and the shares are expected to start trading on October 18.

The proceeds will go towards supporting growth plans in China and Japan.

Citigroup and JPMorgan are joint global coordinators and book runners with UBS, DBS and CICC.