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$90 mil AEI to add 62,000 sq ft of GFA, office space to NEX shopping mall

Jovi Ho
Jovi Ho • 4 min read
$90 mil AEI to add 62,000 sq ft of GFA, office space to NEX shopping mall
City & Country understands from NEX’s asset manager that the AEI will be held in three phases, starting with a “multi-floor reconfiguration” of the space occupied by Isetan, which will close in April. Photo: PGIM
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Frasers Centrepoint Trust (FCT) will convert 62,000 sq ft of gross floor area (GFA) from the existing carpark of NEX into retail and office space, adding some 44,000 sq ft of net lettable area (NLA) to the Serangoon shopping mall.

Frasers Centrepoint Asset Management, the manager of Frasers Centrepoint Trust, is targeting a 7% return on investment, based on an estimated $90 million capital expenditure.

The asset enhancement initiative (AEI) will begin in 2Q2026, according to FCT’s business update for 1QFY2026 ended Dec 31, 2025, released Jan 23. The upgrading works will “solidify NEX as a key retail hub in the Northeast”, according to FCT.

According to FCT’s Jan 23 business update, the new office space will be carved out of “L4R”. According to NEX’s online directory, tenants on “level 4R” include Serangoon Public Library, The Ballet & Music Company and other learning centres.

City & Country understands from NEX’s asset manager that the AEI will be held in three phases with expected completion in 4Q2028.

See also: FCT reports 1QFY2026 occupancy of 98.1%; aggregate leverage of 40.3%

The first phase will involve the multi-floor reconfiguration of the space occupied by Isetan department store. After 15 years at NEX, the former key tenant announced in December 2025 that it will close in April.

Subsequent phases will involve the creation of new GFA, which will house an “expanded mix of retail offerings”, according to a PGIM spokesperson.

See also: Target, Walmart, Whole Foods targeted in botulism suits

Completed in 2010, NEX is currently owned and operated by Gold Ridge, whose stakes are held by three shareholders. Frasers Centrepoint Trust holds an effective interest of 50% in NEX. The other two shareholders are a subsidiary of Prudential Financial and an institutional investor.

Prudential is the parent company of PGIM, whose real estate business is the asset manager of NEX.

“As the manager of NEX, we have grown with the community and its shoppers since its opening in 2010,” says Su Lin Wee, executive director and head of asset management for Southeast Asia, Greater China and South Korea for PGIM’s real estate business.

The AEI will introduce “a range of new-to-mall concepts”, according to PGIM. This includes curating “precincts” across “key growth areas” like activewear and lifestyle fitness, home and tech essentials, beauty and personal care, everyday fashion, and learning and enrichment.

The asset manager is in “active discussions with several brands” and are “progressively securing operators”.

Su adds: “We are excited to embark on this AEI to rejuvenate the mall, with practical physical uplifts and new-to-mall concepts that not only enrich the shopping experience but also cater to the evolving needs of our shoppers and tenants.”

According to FCT’s Jan 23 business update, NEX is a five-storey retail complex with two basement levels. The second-largest suburban mall in Singapore has 942.131 sq ft of GFA and 634,631 sq ft of NLA, with 100% committed occupancy.

With the exit of Isetan, the mall’s key tenants will be Fairprice Xtra, Shaw Theatres, Food Junction, Food Republic, Cold Storage, &Joy Japanese Food Street, Uniqlo and H&M.

FCT first acquired a 25.5% stake in NEX in February 2023. Singapore’s largest suburban retail mall owner acquired an additional 24.5% stake in March 2024. As at Sept 30, 2025, the property is valued at $2,141.0 million on a 100%-owned basis.

FCT said in January 2024 that a potential NEX AEI would redeploy around 60,000 sq ft of non-commercial carpark GFA for retail and office use. The manager also said it can create new retail spaces using voids on multiple floors and reconfigure existing areas.

FCT has reported a committed occupancy rate of 98.1%, unchanged q-o-q for 1QFY2026. After the first quarter of this year, the REIT’s occupancy rate will increase to 99.9% with the cinema spaces at Causeway Point and Century Square successfully backfilled.

Photos: PGIM, FCT

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