• Positioned as Singapore’s first online-and-offline shopping mall, Funan has differentiated offerings to attract tenants and shoppers.
• To date, it has received 60- 70% signed and advance negotiation leases.
• We believe Funan has no issue in filling up its occupancy. But we maintain our HOLD call on the stock due to limited catalysts.

Attended Funan Topping Out Ceremony

We attended Funan’s Topping Out Ceremony this morning. The event was held at Funan Showsuite located on Hill Street, Singapore, and was officiated by the Guest of Honor Mr Heng Swee Keat, the Minister of Finance of Singapore.

Bringing Forward the Opening Date

• To recap, Funan DigitaLife Mall which was a shopping centre primarily known for shops selling computers and other electronic gadgets, has been closed since the 3Q2016 for construction to transform it into a creative hub.
• Today, Funan celebrated its structural completion ahead of schedule. From groundbreaking to structural completion took about 19 months. To date, it has achieved 72% of overall construction. Due to the faster-than-expected construction progress, thanks to the adoption of smart construction technologies, both retail and office components of Funan are now slated to open in 2Q2019, instead of the earlier-announced 3Q2019. The service residence component has also been brought forward from 2020 to 4Q2019.

A Smart Building Which Focuses on Work, Live and Play

CapitaLand Mall Trust showcased a range of digital innovations that will be found at Funan. Innovations which could beef up retail performance include a smart interactive directory that uses facial recognition to provide shoppers with customised recommendations, video analytics that study shopper traffic and crowd density, as well as a merchant dashboard that enables retailers to tap consumer insights.

As for its serviced residence, tenants can expect an all-in app which allows social networking, room bookings and also serves as a mobile key.

Funan will be the first to deploy automated guided vehicles to provide shoppers with a hands-free shopping experience. It will also be the first to utilise a robotic arm for its 24-hour drive-through click-and-collect service. 

Other than smart technologies, Funan will also offer a cycling path through the building at Level 1, eSports Zone, futsal court and the largest rock-climbing facility in CBD in the building.

Maintain HOLD

• All in, we like the concept of Funan and believe that its differentiated offerings which are absent in other conventional offices and malls will help to attract tenants.
• To date, leases signed and in advanced negotiations for Funan’s retail and office components have reached 70% and 60%, respectively.
• Maintain HOLD due to limited catalysts. We have factored in the expected contribution from Funan.

Source: CGS-CIMB Research - 28 Sep 2018