China Club at Capital Tower closes for good after years of losses

Singapore

THE China Club Singapore, a members-only club that has been a networking ground for many corporate executives, is closing for good after suffering years of losses amid stiff competition and rising costs.

The club was to have been closed only temporarily from April 7 to June 1, in line with Singapore's circuit-breaker period. But on Wednesday, the club informed members that it would now be closed permanently on June 1.

In a letter signed off by general manager Andrew Mah, China Club said that it has been facing stiff competition posed by new food and beverage (F&B) establishments that emerged in the vicinity.

In addition, "like the F&B sector in Singapore, we have been seeing escalating labour costs and operating costs".

Despite the management's best efforts, China Club therefore suffered losses for "a few years" and will no longer be able to remain financially viable.

"It is with deep regret that we will have to file for voluntary liquidation and close the club," it added.

China Club said it has since refunded April's fees to members and stopped the collection of fees from May. Deposits for events and function room bookings have also been refunded; members' F&B deposits will be returned as well.

The club also thanked members for their "unwavering support" throughout the years.

The closure comes 19 years after the club opened at the top floor of the 52-floor Capital Tower in Tanjong Pagar. The premium office building counts CapitaLand, GIC and JPMorgan as its top three tenants.

The club offered not only privacy, but also spectacular views - it is surrounded by 16m-tall glass and "on a clear day, Malaysia and Indonesia can be glimpsed", according to its website.

In its heyday, the club hosted foreign dignitaries, heads of government such as Singapore's late founding prime minister Lee Kuan Yew, and celebrities including Hong Kong actress Carina Lau.

But in 2016, it swung into a net loss of S$93,000 - from a profit of S$32,000 in 2015 - against S$4.96 million in revenue, according to regulatory filings.

The club continued to make losses in subsequent years. In 2018, it recorded net losses of S$36,000, against S$5.32 million in revenue.

The exclusive club has links to Singapore-listed CapitaLand and Hotel Properties Limited. Its largest shareholder, holding a 48 per cent stake, is Westbond Investments, an indirect wholly-owned subsidiary of CapitaLand.

HPL Leisure Holdings, a unit of Hotel Properties, is another shareholder. The investment holding company holds a 10 per cent stake in the club. Four unregistered foreign entities hold the remaining stakes.