Capitaland to Mix Development Condo in Jurong East
Capitaland Development plans to buy the former JCube Shopping Centre in Jurong, near the Jurong integrated transport hub, which includes civic institutions, a bus interchange, and future mixed-use developments. The new owner will examine potential redevelopment options for the mall. The existing mall operator, CapitaLand Retail Management, will stay in place and continue operating it.
The redevelopment of JCube is under review, with CLD exploring a number of options. However, no firm plan has been drawn up yet. However, the URA’s publication of a proposed masterplan amendment suggests that the company has at least in-principle approval from authorities. The mall is located about 200m from Jurong East MRT station. The other nearby shopping malls are Westgate, IMM and Jem.
One option is to replace the JCube with a mixed-use residential development. However, redevelopment of JCube is a controversial idea, as it has the potential to affect its future use. Moreover, it may not be possible to preserve its iconic status if it is converted into a mixed-use development. The JCube is currently the only Olympic-size ice rink in Singapore. Its redevelopment may also affect the future of Singapore’s ice sports athletes.
In addition, shareholders have expressed concern over the declining occupancy rate of JCube. At the moment, it has the lowest occupancy rate of any of the malls in CMT’s portfolio. Its occupancy rate has fallen from 94.3% a year ago to 91.6% this year. However, CMT is positioning the mall as a destination for sports, with a 24-hour gym.
Meanwhile, a new Jurong Lake District masterplan aims to make the Jurong Lake District the largest mixed-use business district outside the city center. It will also be home to four MRT lines. While JCube is currently in operation, it will likely undergo some changes, with the redevelopment of its existing retail space. As a result, many existing tenants will need to find new rental space. The government also plans to redevelop the Jurong Lake district as a township with 20,000 new homes.
According to an Urban Redevelopment Authority (URA) masterplan, the JCube plot could be redeveloped for primarily residential purposes, with commercial spaces on the first storey. However, the plan is not yet approved. In the meantime, JCube is still doing business as usual.
JCube is home to Singapore’s first IMAX cinema and Olympic-sized ice rink. It was constructed on the site of the former Jurong Entertainment Centre. Its name is the result of a naming competition held in 2010 and was chosen based on its location in Jurong, Singapore. The Cube part refers to the mall’s shape, which resembles an ice cube. The mall is designed by Benoy and RSP Architects. In recent years, it has seen a rise in residential demand.
The former JCube Shopping Centre is set to be demolished and replaced by a mixed-use development in Jurong East. As the Jurong East area is undergoing a transformation into an urban hub, CapitaLand Development has also taken into account the changing landscape. The redevelopment of JCube has also cast a shadow over the future of ice sports in Singapore, as the building houses one of only two ice rinks in the entire city.
The land at the former JCube Shopping Centre is currently occupied by a 460-seat gallery and an IMAX theatre. The UDRA has proposed a change in the land use of the site, which will allow for the development of a mixed-use residential development. The JCube mall is owned by CapitaLand, which also owns Westgate and IMM Mall. The JCube was opened in 2012.
CapitaLand hopes to take advantage of the property’s location and connectivity. The former JCube Shopping Centre is currently home to a mall and an ice rink, but a mixed-use development could see prices as high as $2000 psf. In fact, one of its neighbours, Amo Residence, recently sold for $2100 psf in the Outside Central Region – a record for a first-day preview sale.
Capitaland is exploring various options for redevelopment of the JCube Shopping Centre. The developer has not yet announced a final plan, but the publication of the proposed masterplan amendment by the URA suggests that the company has received in principle approval from the authorities. The JCube Shopping Centre is located just 200 metres away from Jurong East MRT station. Other malls in the vicinity include the Westgate shopping mall and the outlet mall IMM.
Redevelopment of mall
A new masterplan for Jurong Lake District hopes to make the former JCube Shopping Centre into a mixed-use business district, with improved connectivity to the rest of the island. But a spokesperson for CLD says a decision isn’t yet in the works. In the meantime, the company is focusing on exploring various options for the redevelopment of the site.
Capitaland plans to redevelop the JCube Shopping Centre in Jurong East, which opened in 2012. A new masterplan has been approved by the Urban Redevelopment Authority, which proposes that the former mall’s land be converted from a commercial area to residential, with commercial space on the first floor. The plot ratio of the proposed property will increase from 3.0 to 4.2, which means that the development will have a greater density.
The JCube’s sale to CapitaLand Group has led to speculation over whether the redevelopment will take place. After all, the CICT has been increasing its asset recycling efforts, as it divested two properties and acquired 3 assets in Australia. It is expected that the net proceeds from these deals could help fund future acquisitions. However, if this doesn’t happen, CICT will have to reconsider its future plans for the JCube Shopping Centre.
The redevelopment of the former JCube Shopping Centre in Jurong East will be the first mixed-use project to occupy the area. Its estimated price per square foot (psf) is around $1,480, which is higher than the current average of $1758. This includes the mixed-use residential component of the JCube, which could reach $2000 psf.
Cost of redevelopment
The CLD wants to redevelop the former JCube Shopping Centre into a residential complex. However, the company will face stiff competition from other shopping malls in the vicinity. It will also have to deal with a strong demand for residential properties in the Jurong East area.
The site is about 7,771.2 square meters in size, with a net lettable area of 210,038 square feet. It also has a roof garden and IMAX cinema. The site has a 99-year leasehold and has a committed occupancy of 95.5 percent.
JCube was built in 2012. It is one of four malls around Jurong East Central, owned by CapitaLand. The others are the IMM and JEM. The JCube has been undergoing major refurbishments and has faced stiff competition from its neighbours. As a result of the intense competition, the land has recently been rezoned. The new development plan will see more residential units built on the site and increase the plot ratio from 3.0 to 4.2.
While the sale of the former JCube Shopping Centre is a big win for the developer, the sale price is also a significant challenge. The site is located in a difficult location, opposite the JEM mall and the Westgate mall. It is surrounded by bus interchanges and MRT stations. As a result, foot traffic in the area has dropped. The tenants have suffered and the site has experienced a high rate of tenant churn.
Impact on neighbouring malls
Recently, the Urban Redevelopment Authority (URA) announced that the former JCube Shopping Centre may be converted into a mixed-use development involving residential and commercial space. According to the plan, the first two storeys of the new development will contain commercial space and the rest will be residential apartments. The development is likely to impact neighbouring malls in the area, which includes Westgate and IMM.
The developer, CapitaLand Development, wants to build a larger property at the former JCube Shopping Centre. This will allow them to sell more units and increase the overall property value. The new mixed-use residential component of the development is expected to fetch a price of at least $2000 psf. In contrast, Amo Residence, a mixed-use development in the Outside Central Region, sold for $2100 psf on its first day of preview.