Isetan will likely stop conducting its own retailing operations at its Wisma Atria department store from the second quarter of next year.
However, in a statement to the Singapore Exchange yesterday, the firm said that in line with its core business, it intends to continue retailing activities and food and beverage services at the premises by housing tenants and providing the necessary facilities management.
"While the company endeavours to lease out all floors of the premises, there is no assurance that it would be able to achieve full tenancy, due to market conditions or commercial reasons," it added.
Under such circumstances, the company said, it might continue to operate retailing activities in that part of the premises until tenants are found.
In the meantime, the company will continue to operate its own department
store operations in the Orchard Road shopping belt at its Isetan Scotts store in Shaw House.
It also has four suburban department stores, in Katong, Tampines, Serangoon Central and Jurong East.
Isetan said it is committed to its long-term purpose of running department stores and supermarkets.
Last month, Isetan announced that it had slipped into the red with a third-quarter loss of $2.9 million, owing to a slow growth in sales following renovation works at its Scotts department store.
Other than its new store in Jurong East, the other outlets also registered lower sales in the third quarter, owing to a competitive and challenging retail environment, it said.
In October, Isetan said it was planning to lease out one floor of its Wisma Atria department store to Japanese restaurants and food kiosks, "to spread Japanese food culture"
The intersection of Fifth Avenue and West 57th is the most coveted retail location and most expensive in all of New York. Last year, Michael Shvo and Russian billionaire Vladislav Doronin agreed to pay $500 million for 20 floors of the Crown Building at 730 Fifth Avenue, on the corner of 57th Street. Now Shvo has filed plans to convert most of the 26-story office building into condominiums and a hotel. >> DETAILS
Bergdorff Goodman, Louis Vuitton, and Tiffany's anchor the three other corners to 730 Fifth Avenue which was once owned by former Philippine's president Ferdinand Marcos.
The 400,000 square-foot tower’s tenants include talent and literary agency ICM, private-equity giants KKR and Apollo Global Management and men’s designer Ermenegildo Zegna. 35,000 square feet is retail that includes Bank of America and Piaget along with Bulgari and Mikimoto.
According to recent article in the New York Post the 25 storey Crown Building which was acquired by the Winter and Speitzer family in 1991 for $93.6 million was sold for a staggering $1.75 billion to property owner who already owns the nearby Prada and Abercrombie & Fitch locations.
Bloomberg reported that most of the office and retail tenants at 730 Fifth are paying rents well below the market. With about 90% of its leases expire within seven years, there are opportunities to boost the property’s cash flow, Bloomberg reported.
The acquisition of $1.75 billion US is believed to set a world record for a single office building at $4,490 per square foot. -- 2014 December 18