SINGAPORE: Lendlease Global Commercial Trust Management, the manager of Lendlease Global Commercial REIT (LREIT), announce that LREIT has won the joint tender by the Singapore Land Authority, Singapore Tourism Board and Urban Redevelopment Authority to redevelop the 48,200 square feet car park at Grange Road into a new multi-functional event space.

The bid was awarded using the Price-Quality Method, which took into consideration the quality of the proposal to strengthen Orchard Road’s position as an innovative lifestyle destination – in particular, enhancing the offerings in the Somerset area. The award has an initial tenancy term of 3 years, which may be renewed for a further two tenancy terms of 3 years each, and a final tenancy term not exceeding 364 days.

Set to be operational in the second quarter of 2022, the concept, designed by DP Architects, aims to offer a first-of-its-kind lifestyle experience along Orchard Road, with multiple dedicated event spaces, an independent cinema, hawker stalls serving local delights and a food and beverage attraction. This will provide a rich array of events and experiences for locals and tourists, especially the millennials.

LREIT is collaborating with Live Nation, the world’s leading live entertainment company, to create an exciting calendar of concerts, film and events ensuring that the site is active all year round.

Live Nation brings with them strong expertise in event management and a portfolio of world-class talents and contents to attract fans, followers and footfall.

LREIT will also collaborate with The Projector, Singapore’s much-loved independent cinema operator, and Museum of Food. In support of the government’s push for Singapore’s hawker culture to be recognised by UNESCO, Museum of Food aims to launch an experiential attraction where locals and tourists can immerse themselves in the history, flavours and creativity of local cuisine, curating concepts that generate high imaginative experiences with instagrammable moments.

The strong government support in rejuvenating Orchard Road is an important consideration for the Manager to invest in the site and create synergy with Discovery Walk, which is linked to 313@somerset. LREIT will work with stakeholders and community groups to use the space for a variety of curated events. Locals and tourists will be entertained with experiential and memorable retail, lifestyle and entertainment events that run throughout the year.

The development project cost is estimated to be approximately $10 million and will be funded via LREIT’s working capital, which is spread throughout the development phase. The development cost accounts for less than 1% of LREIT’s total deposited property value and is within the 10% regulatory limit on property development for REITs. There is no impact on gearing. LREIT’s gearing ratio was approximately 36% as at 31 March 2020, well below the leverage limit of 50% for REITs.

Mr Kelvin Chow, Chief Executive Officer of the Manager, said, “The Grange Road event space tender is a great opportunity for us to play a part in Orchard Road’s rejuvenation and more specifically contribute to the placemaking of the Somerset area, which is in line with the Government’s initiatives. We envision this space to provide a differentiated lifestyle experience for locals and tourists alike. A well-curated space will have complementary effects on 313@somerset, which also seeks to continue to improve its experiential and omni-channel retail offerings.”