Wednesday, September 20, 2006  

A sad Christmas for Wisma Atria

The Wisma Atria tunnel link with Orchard MRT will be closed at the end of this month and there will be no reprieve for the retailers.

Retailers in the mall, particularly the basement, have long benefitted from large numbers of people walking by as they walk to and from Orchard MRT.

An anonymous major retailer was quoted by ChannelNewsAsia as saying it might lose 30% of sales due to the closure.

Last ditch attempts by Macquarie MEAG Prime REIT (MMP REIT) to speak to relevant government agencies and the developers of the new Orchard Turn project to delay the closure till after the peak Christmas shopping period have failed to yield results.

CapitaLand, which owns half of Orchard Turn, is unwilling to delay the start of construction any further, stating that repayment on interest of the project will cost it S$200, 000 a day.

Pua Seck Guan, CEO of CapitaRetail, told TODAY, “I think it's very unreasonable, as a neighbour there, now using the tenants to pressure the authorities.”

CapitaLand had to build a street level covered walkway, as part of the tender requirements, before it was allowed to close the tunnel for two years to develop Orchard Turn.

MMP REIT on its part, will build new street-level escalators, which will not be completed by the time the tunnel has to be closed.

Perhaps, the Urban Redevelopment Authority should not have awarded the tender for Orchard Turn so soon, or made it a condition that the tunnel would not be closed until after the busy Christmas shopping period.

After all, the biggest losers in this case will be Wisma Atria retailers and MMP REIT, which owns 74% of Wisma and 27% of Ngee Ann City, the neighbouring mall which also benefits from the human traffic coming in via the tunnel.

In the end, the biggest winners might be CK Tangs and Scotts, which might benefit from the diversion of shoppers who use the tunnels to avoid rainy and hot weather.

Or even CapitaLand, who will be garnering revenue from Orchard Turn in two years' time, and affecting its competitor's business.

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