SINGAPORE \u2013 A home-grown bakery that has been selling its cakes, confections and cookies at The Clementi Mall for the last nine years might soon close when its lease runs out in end-2026.<\/p>\n
The bakery\u2019s owner is concerned that the heartland mall\u2019s new owner,<\/a> property firm Elegant Group, will ask for higher rent that he will not be able to afford.<\/p>\n When he recently negotiated the renewal of his lease, the mall\u2019s new owner asked for more than $10,000 \u2013 a 55 per cent fee hike.<\/p>\n The bakery owner, who asked not to be identified out of concern that it might jeopardise future rental negotiations, managed to get this down to a roughly 25 per cent increase, but was offered only a six-month lease extension.<\/p>\n This expires at the end of 2026.<\/p>\n \u201cBefore Elegant Group took over as landlord, rental increases did happen, but they were generally at a reasonable and manageable rate, between 5 per cent and 10 per cent,\u201d said the owner.<\/p>\n Elegant Group, linked to Guangzhou-based conglomerate Grantral Group, has been acquiring retail malls here. The Clementi Mall is its sixth acquisition<\/a>, adding to a portfolio which includes adjacent Grantral Mall @ Clementi.<\/p>\n This example illustrates how a recent influx of foreign investors and businesses is changing Singapore\u2019s retail landscape, with local businesses concerned that they will be pressured by rising rents.<\/p>\nChanging tenant mix<\/h2>\n