Have some Funan: Can CMT's Funan DigitaLife Mall revolutionise Singapore’s retail?

The mall promises shops without walls.

All eyes are on CapitaLand Mall Trust’s redevelopment of Funan DigitaLife Mall which is said to redefine the future of retail.

According to a report by Maybank Kim Eng, CMT management is aware of the structural challenges facing retail currently, including a tired product of the same chains, high labour costs, e-commerce threat, and ambivalent consumption attitudes from millennials.

“Instead, taking the cue of its location in the Art & Civic District, the new Funan promises experiential retail (“reimagine… shops without walls”), collaborative office space, a high-degree of technology interface, and conducive to personal transport devices (scoots, bicycles),” the report said.

Meanwhile, OCBC said the property is expected to comprise three components: retail, office, and serviced residences.

“The total estimated cost is S$560m, with a targeted completion date in 4Q19. Management estimates an incremental NPI per annum of S$36.6m, which translates into a projected ROI of 6.5%. CMT intends to leverage on Funan’s location at the heart of Singapore’s Civic and Cultural District, and to bring in fresh concepts for the integrated development,” OCBC added.

Meanwhile, analysts from RHB are generally optimistic of Funan’s “Mall of the Future.”

“We welcome the move, as we believe the retailers need to differentiate and incorporate futuristic elements to keep themselves ahead of competition and increase shopper traffic,” RHB Research said.

Also Read

Changi Airports and Hainan Meilan form JV for non-aero services

F&B brands remain key drivers of retail leasing in Q3

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

I want to download the media kit