Advertisement
Singapore markets closed

  • Straits Times Index

    3,266.37
    +1.84 (+0.06%)
     

  • S&P 500

    5,187.67
    -0.03 (-0.00%)
     

  • Dow

    39,056.39
    +172.13 (+0.44%)
     

  • Nasdaq

    16,302.76
    -29.80 (-0.18%)
     

  • Bitcoin USD

    61,087.94
    -1,068.96 (-1.72%)
     

  • CMC Crypto 200

    1,320.69
    +20.59 (+1.58%)
     

  • FTSE 100

    8,357.83
    +3.78 (+0.05%)
     

  • Gold

    2,316.70
    -5.60 (-0.24%)
     

  • Crude Oil

    79.41
    +0.42 (+0.53%)
     

  • 10-Yr Bond

    4.4920
    +0.0290 (+0.65%)
     

  • Nikkei

    38,073.98
    -128.39 (-0.34%)
     

  • Hang Seng

    18,537.81
    +223.95 (+1.22%)
     

  • FTSE Bursa Malaysia

    1,601.22
    -3.53 (-0.22%)
     

  • Jakarta Composite Index

    7,088.79
    -34.82 (-0.49%)
     

  • PSE Index

    6,542.46
    -116.72 (-1.75%)
     

CQ @ Clarke Quay reopens to 93% committed occupancy, could add to NPI in 2H2024

Goola Warden
·2-min read

CQ @ Clarke Quay's 93% occupancy could buoy NPI in 2H2024 and its valuation, lowering CICT's leverage.

CapitaLand Integrated Commercial Trust (CICT) C38U has had a spate of better news in March and April. CQ @ Clarke Quay reopened on April 26 with a committed occupancy of 93% compared to 85% as at end-December 2023. The refreshed tenant mix comprises more than 50% new concepts from international and homegrown brands.

Since the valuation of CQ @ Clarke Quay at end-December was $410 million when occupancy was just 85%, there is a likelihood that the property could command a higher valuation by the end of the this year. According to CICT's FY2023 presentation, the valuation of CQ @ Clarke Quay was uplifted due to an increase in value post-AEI, rents and higher occupancy.

ADVERTISEMENT

If the higher occupancy, coupled with higher footfall and tenant sales, can be as robust as they were on the evening of April 26, CQ @ Clarke Quay’s lift in valuation would help to bring CICT’s aggregate leverage to below 40%.

When asked whether CQ @ Clarke Quay could contribute to CICT’s net property income (NPI) in the second half of the year, Tony Tan, CEO of CICT’s manager, answered in the affirmative.

Tan has been busy trying to fill Gallileo, CICT’s office building in Frankfurt’s CBD. As at end-January, its anchor tenant Commerzbank vacated. However, on March 13, CICT’s manager announced that it had secured none other than the European Central Bank (ECB) as anchor tenant to occupy 93% of Gallileo in 2H2025.

In his speech at the reopening of CQ @ Clarke Quay on the evening of April 26, Tan highlighted some of the different retail concepts at CQ @ Clarke Quay.

FairPrice Finest Clarke Quay offers a wide range of products that are curated in collaboration with local partners. Its Grocer Food Hall, a food experience zone, offers “You Pick, We Cook” services as well as curated cocktails infused with local flavours that are exclusive to the branch.

During a tour of the property, FairPrice Finest Clarke Quay was packed — not just with curious shoppers — but with 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, which devoted approximately 60% of the repurposed warehouse unit to curate an experiential and community space. The store houses a bar and café, an artist lounge, vinyl listening stations, a creator corner with music editing set-ups and a large hall that doubles as dining space and performance venue.

“The revamped CQ is also a pet-friendly retail development with a suite of pet-friendly amenities. Besides pet hydration bays and designated pet parking zones, there is also a wide selection of pet-friendly dining options along the riverside,” says Tan, who is himself a dog lover and a dog dad.

See Also: