SUSS FMT306 TMA 02: Strategic Asset Enhancement at Great World City

This report analyzes the asset enhancement initiative at Great World City, a major shopping center in Singapore, addressing the challenges posed by online retail competition and evolving consumer preferences. It provides justifications for the initiative, focusing on the need to enhance the shopping experience through contemporary design, unique retail concepts, and improved public amenities. The report also outlines strategies for managing existing tenants during the proposed asset and property enhancement works, emphasizing the importance of entertainment, relationship building, responsiveness, marketing, location, tenant mix, and feedback collection. The student explores various aspects of strategic asset and property management, providing recommendations to the asset owner and demonstrating an understanding of the complexities involved in retail property development and tenant relations. The report leverages various academic sources and provides a comprehensive overview of the project.

Running head: OPERATIONS
Strategic Asset, Properties and Facilities Management
Name of the Student:
Name of the University:
Author Note:

1OPERATIONS
Question 1 (a): Justifications for Asset Enhancement Initiatives
The Great World City, a renowned shopping centre of Singapore, gets ready for an Asset
Enhancement Initiative (AEI) which is believed to add newer vibrancy and put forward a
contemporary and the elegant lifestyle for the shoppers (greatworldcity.com.sg, 2019).
The rising competition of the online retail giants along with speed of development of virtual
experience in shopping have put forward a challenge to the traditional shopping destinations in
maintaining the footfall and attracting the newer shoppers in the competitive marketplace
(Phang, 2016). In the last ten years there have been remarkable changes in talent mix of the
shopping centers. 10 to 20 years ago the shopping centre had been a destination solely for the
retail offering that included footwear, clothes and consumer items. In recent times, the focus has
shifted more towards the ‘experience’ factor in driving the same footfall. For instance, the
experience factor is created with addition of the bowling alleys, units related to food and
beverage particularly casual dining restaurants and the movies space. Hence, there is a need for
the asset enhancement initiatives.
To ensure this, it is necessary for the successful retail client to adopted enhancement
initiatives that allowed increased space with the centers used for the beverage, food and leisure
uses for contributing to shopper experience thereby turning them into destination centers for a
family day or an evening out (Koh et al. 2014). The asset owners also needed to move away from

2OPERATIONS
filling the space with only retailers and use the inventive and the imaginative ways in creating
destinations for attracting viewers.
Various malls can adopt various measures of asset enhancement. Some of them include
alteration of the tenant mix through the significant investment in creating of the floor of outlet
retail that can be anchored by larger clothes retailer (Tan & Rao, 2013). This represented a newer
concept in Singapore that provided a newer shopping experience in a prominent location. The
modified centre not only provided experience of a lifetime but provided various leisure and retail
areas. Similar approaches of asset enhancement initiatives have become necessity for the
successful management of the shopping centre in future.
Thus, for providing the experience at the shopping centers, it is necessary for the asset
owner to think about the mix of the tenants visiting the mall. The retailers introduced needed to
attract the public visiting the centre and enhancing the experience for lengthening their stay,
making them visit the other parts of centre and encouraging them in returning. Temporary
lettings and pop-ups should be away as they illustrate varied range of retailers and occupiers
along with providing an additional benefit in saving the business rates (Seek et al. 2016). They
might also involve the community and the art projects for creating an appeal to the newer
visitors. Besides, there should be consideration of how the malls and walkways can be used for

3OPERATIONS
increasing the dwell time for instance inclusion of seating area along with screen displaying
events in centre and local community including promotional and demonstrations events.
Asset enhancement initiative represents an ongoing process and an asset enhancement
manager needs to plan 12 to 18 months before the expiry of the lease for the management and the
future development of the shopping centre (Chang, 2016). In case a landlord plans in developing
the occupied unit there should be prior thoughts as to whether there is a possibility of relocation
of the tenant to the other location. For the asset enhancement managers it is more like predicting
the future with the help of planned strategy that helps with ongoing challenges in retail space.
There exists numerous issues that the landlords must consider provided they wish in taking
possession of the unit lent specially when it remains protected by Landlord and Tenant Act of
1954. This is when seeking for the legal advice acts as the valuable tool in forming your future
strategy. The specialist can form the part of the team for the future proofing of the assets,
offering the commercial advice on trends in market place and guiding them through the complex
legal issues (Dowden & Humphreys, 2013).
The initiatives undertaken include (El-Akruti, Dwight & Zhang, 2013):
1. Implementation of a Contemporary Design for a Unique Shopping Experience: This
particular asset management initiative will provide the shoppers with unique shopping
experience in terms of the distinctive entrances, reconfigured walkways, ease the navigation of

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the escalators and improve the accessibility. The initiative will allow the mall authorities in
incorporating uniquely designed retail pods housing creative retail concepts that would be the
first in a Singapore mall. The initiative will allow the Level 1 shoppers in enjoying shorter stroll
along with the view of the beautiful landscapes within the perimeter of mall. The initiative would
include the creation of the outdoor playground for the children while the parents keep themselves
busy in shopping. The initiative will also allow the office tenants in enjoying hassle free access
to mall and experience direct connection to the office lifts at the Level 3 of mall which was
previously not the case.
2. Introduction of Unique Concept of Retailing: This particular initiative will put forward
an initiative for the Japanese focused retail for catering to Japanese community living in vicinity.
The initiative will also allow in ramping the Food and Beverage (F& B) offerings from 20
percent to close to 30 percent. With the initiation of the new initiative and the relocation from the
Basement Level 1 to the Level 3 would result in the addition of a varied range of newer
concepts. The initiative also allowed the mall to better cater to the needs of the community as the
basement will feature a new hall dedicated to food along with the other retailers and the food and
beverage operators for the marketplace.
3. Ensure Improved Connectivity of the Public Amenities: The initiative will allow
introducing access points from the Great World City to the upcoming Mass Rapid Transit (MRT)

5OPERATIONS
of the Great World. The initiative will enable a newer link on the Basement to be extended
choices to the shopping choices that would provide the public with the seamless access between
the mall and the MRT station.

6OPERATIONS
Question 1(b): Strategies for Managing the Existing Tenants during Proposed Asset and
Property Enhancement Works
Retaining and attracting the right kinds of tenants in the shopping centers keep the leaders
at the shopping centre going (Levy & Peterson, 2013). Thus to attract and retain talent, tenants
and management teams requires to build stronger strategy, understand local demographic and
the consumer profile and plan the initiatives in engaging with the existing and the newer tenants.
The tenants want higher traffic, visibility and events and entertainment. Tenants are
becoming increasingly tough in capturing with the market getting increasingly competitive
(Micu, 2013). This has resulted in the tenants having power in demanding more from the centre
operators/owners. It has been found that the stronger tenants are quite crucial and has attracted
over 30 percent of total footfall. The footfall is necessary since it is the scheme footfall that the
tenant is paying for. Nearby and smaller tenants benefit massively from the anchor tenant as they
have key influence on driving the footfall and helping in building the awareness of the centre.
The kind of retailer of the anchor tenant set the tone for the other tenants.
The strategies adopted in managing the existing tenant during proposed asset and the
property enhancement work:
1. By Organizing Entertainment and Holding Events: This involves holding the
events or the pop up commercialization entertainment units that act as excellent means in driving
footfalls (Truyen et al. 2016). The tenants closer to the events will benefit from the enhanced
traffic. Shopping centers hold events like the fashion evenings and the student nights or make use
of the commercialization units in promoting the schemes and enticing the customers in making a

7OPERATIONS
visit. Existing tenant expect and want the management teams in holding regular activities for
ensuring the continuous stream of the footfall.
2. By Maintaining Relationships: Existing tenants wants personal relationship with the
team of shopping centre in strategizing the ways for improving the footfall. Also, there is a need
for face to face contact that gives the tenant the confidence in building issues that is dealt with
effectively and quickly (Prout, 2018). Building of stronger relationships helps in increasing
likelihood of the tenant in leasing the space in a different landlord centre which is a greater way
of building tenant base if the additional centre is added to the portfolio.
3. By Responding to the Request: It is necessary to resolve issues as fast as possible. It
is necessary to treat the tenants in a good way. During the asset enhancement works, things
should be fixed instantly and taken care of for the tenants (Scarrett & Wilcox, 2018). Here, it is
vital note that only those promise should be made which can be kept. Once they are informed
that certain things are done for them, they should be performed in timely fashion. They should be
informed about the roadblocks.
4. By Adopting Marketing Strategies: Tenants requires to be confident about the
centers in strongly and adapting the marketing strategy in constantly driving the footfall into
scheme (Ogutu & Kihonge, 2016). This strategy needs to be extensive for ensuring that all the
different demographics and the ages require to be captured. If the scheme requires stronger
tenant mix then each of the tenants might make use of the different tactics and platforms in the
marketing strategies. It is necessary for the centers in using the platform in working together for
creating strategies and driving traffic to the store.

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5. By Identifying the Location and Positioning: This strategy plays a key role in
strategically positioning the tenant success for thriving within the environment of the centre. This
required to be placed near the stores that would attract the same consumer profiles for widening
size of the target audience thereby allowing them in benefitting positively from the footfall of the
centre. It is to be noted that the consumers expects convenience in each aspect of the shopping
experience.
6. Consideration of the Tenant Mix: This strategy acts critical for determining the
footfall of the scheme and the consumers expects different choice. Shopping centre does not
represent the place of shopping but they also represent a place for meeting friends, eating and in
enjoying the leisure activities ( Abrudan & Plaias, 2013). Tenants want in being part of the centre
that has varied and dynamic mix since it helps in driving a higher footfall.
7. By Considering Feedback of the Tenant by Sending out Survey: This strategy
allows in soliciting the input of the tenant through the survey. The strategy acts effective
amongst the multi unit properties and the apartment complexes (Yi, Li & Li, 2015). There are
various companies who help in preparing the results or the survey could be prepared using the
online source. The survey required to be kept anonymous and if possible the results can be
shared with the tenants. It is necessary to keep them informed about the changes or the
improvement made as a result of the input. Surveying the acts of the residents serves as the
effective way in understanding their satisfaction and the factors that drives their dissatisfaction or
satisfaction and the measure of their loyalty. It is to be noted that addition of the third party
service not only allows in comparing the results achieved from the tenants against the
benchmark of the industry objective so as to provide a better picture of the doings compared to
the landlords. In obtaining similar information, one can also conduct exit interview. Even when

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the tenant leaves due to the factors beyond the control, it helps in providing an overview of the
improvement and changes that might be undertaken for retaining the other tenants. Thus, there
exist numerous factors that contribute to the retention and the attraction of the tenants. It is
therefore necessary for the operator to utilize opportunities and influence the factors within the
power for keeping the tenants happier and appealing to the new talents. Hence, the retention
program of the tenant addresses the best ways of accommodating good talents along with a
suitable replacement strategy for the tenants.

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References:
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Dowden, M., & Humphreys, E. (2013). Landlord and tenant update–hard times, strict
compliance. Journal of Property Investment & Finance, 31(1), 101-105.
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management. International Journal of Production Economics, 146(1), 227-239.
greatworldcity.com.sg (2019). Retrieved from
https://www.greatworldcity.com.sg/whats-new/press-release-great-world-city-to-
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