S$560m redevelopment of Funan mall to begin in Q3

CAPITALAND Mall Trust Management said on Friday that Funan DigitaLife Mall will be redeveloped into "an aspirational lifestyle destination" at a cost of S$560 million.

The asset enhancement initiative is to start in the third quarter of 2016 and will be completed by the fourth quarter of 2019.

The manager estimates the incremental gross revenue per annum to hit S$47.5 million, while the projected incremental net property income per annum to be S$36.6 million.

Return on investment is estimated to be 6.5 per cent.

The largely IT-products mall closed its doors on June 30 after being operational for 31 years to make way for three years of redevelopment works.