SINGAPORE: The 660,000 square foot landmark mall at the corner of Orchard Road and Paterson Road is targeted to be ready by the end of next year.
Joint developers CapitaLand and Sun Hung Kai Properties expect rents to start from S$20 per square foot, and possibly exceed S$60 per square foot.
This means average rents for the mall, which sit on top of Orchard MRT station, will comfortably surpass the S$18 to S$19 per square foot initially targeted.
Pua Seck Guan, CEO, CapitaLand Retail, said: "Well I think on the prime ground floor shops of a smaller size, certainly you know it will be anywhere from S$40 to S$60 over.
"And similarly, at [the] basement which is the highest traffic area, I think we will be expecting rental of anything between S$40 to S$60 over."
In a bid to differentiate itself from other established shopping centres on Orchard Road, ION Orchard is dedicating up to 60 per cent of its space to new brands, flagship and concept stores.
Said Soon Su Lin, CEO, ION Orchard, "They will either be flagship or signature stores. In other words, if it is an existing brand it will be the largest and most interesting, with the widest range of products.
"There will be new [retailers] to the market as well, and there will also be existing retailers or established retailers coming up with new concepts."
Competition on the Orchard Road prime retail shopping belt is intensifying.
Far East Organization on Monday launched its marketing efforts for the new Orchard Central mall at Somerset MRT station.
The 11-storey mall will boast a cluster concept, with shops grouped into clusters such as Food, Youth and High Life. - CNA/yy