CQ @ Clarke Quay to reopen at 93% occupancy, could contribute to NPI in H2 2024
CQ @ Clarke Quay’s 93% occupancy rate could boost NPI in H2 2024 and its valuation, thereby reducing CICT’s debt.
CapitaLand Integrated Trading Trust (CICT) C38U had a string of better news in March and April. CQ @ Clarke Quay reopened on 26 April with a planned occupancy of 93%, compared to 85% at end-December 2023. The renewed tenant mix consists of more than 50% new concepts from international and domestic brands.
Since the valuation of CQ @ Clarke Quay stood at $410 million at the end of December when the occupancy rate was only 85%, there is a likelihood that the property could fetch a higher value by the end of this year. According to CICT’s FY2023 presentation, the valuation of CQ @ Clarke Quay has been upgraded due to appreciation in value after AEI, rents and higher occupancy.
If the higher occupancy, coupled with higher footfall and tenant sales, can remain as robust as they were on the evening of 26 April, the appreciation of CQ @ Clarke Quay would help reduce CICT’s overall leverage to below 40%.
When asked whether CQ @ Clarke Quay could contribute to CICT’s net asset return (NPI) in the second half of the year, CICT’s manager CEO Tony Tan answered in the affirmative.
Tan was busy filling Gallileo, CICT’s office building in Frankfurt’s CBD. At the end of January, the anchor tenant, Commerzbank, had vacated the building. However, on March 13, CICT’s manager announced that he had secured none other than the European Central Bank (ECB) as the anchor tenant, which will occupy 93% of Gallileo in the second half of 2025.
Speaking at the reopening of CQ @ Clarke Quay on the evening of April 26, Tan highlighted some of the various retail concepts at CQ @ Clarke Quay.
FairPrice Finest Clarke Quay offers a wide range of products curated in collaboration with local partners. The Grocer Food Hall, a food experience zone, offers “you choose, we cook” services as well as select cocktails with local flavours that are exclusive to this branch.
Walking around the property, FairPrice Finest Clarke Quay was packed – not just with curious shoppers, but also tourists, expats and locals drinking at the bar and eating at the cafe.
Another example of a different retail concept is Swee Lee Clarke Quay, where around 60% of the converted warehouse space has been used as an experience and community space. The store houses a bar and café, an artist lounge, vinyl listening stations, a creative corner with music editing setups and a large hall that doubles as a dining space and event venue.
“The newly redesigned CQ is also a pet-friendly retail building with a range of pet-friendly amenities. In addition to pet drinking stations and designated pet parking zones, there is also a wide range of pet-friendly dining options along the riverfront,” says Tan, who is a dog lover and dog dad himself.
See also:
