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Will suburban mall operator FCT shine?

The Edge Singapore Published on Wed, Jun 07, 2017 / 8:22 AM GMT+8

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This article appeared in Issue 782 (June 5) of The Edge Singapore

(June 5): Shopping malls located in well-populated suburbs are generally thought to be more resilient than those on Orchard Road or in the CBD. While suburban malls sell everyday necessities, those in the downtown area sell luxuries, which are subject to the vagaries of consumer spending trends. And, in recent years, much has been said about the lack of footfall on Orchard Road. Property sector watchers have pointed out that some shops at the retail podium of One Raffles Place, which is owned by OUE Commercial REIT, have closed, including Uniqlo and Ever green Stationery.

For many investors, the premier locally listed suburban mall operator is Frasers Centrepoint Trust. While it is much smaller than CapitaLand Mall Trust (CMT), all six of its properties are located in thriving suburban areas. Yet, FCT has not been immune to soft retail spending trends in Singapore.