Orchard Towers is slowly filling up, drawing new tenants with “affordable” rents as the mall sheds its shady image.

Once dominated by nightlife establishments, Orchard Towers began emptying out in 2023 after the police stopped renewing and granting public entertainment licences. 

But since the start of the year, new tenants have been moving into the building, drawn by its comparably lower rents and the availability of units in a prime Orchard Road location.

Agents The Business Times spoke to also said that they received more inquiries from potential tenants after Cornerstone Community Church in January announced that it had bought some 19,000 square feet of space on the fourth level of the building for S$54.5 million.

In February, Cafe Blossom moved into a unit across from Cornerstone Community Church’s premises, which are currently under renovation. The church said on its website that operations are expected to begin at the end of the year, at the earliest. 

Valkyria Lim, who runs the pet-friendly cafe with her mother, said the affordable rents in Orchard Towers were the “biggest draw” for her. While she declined to say how much she was paying, she said that food and beverage outlets she had viewed in the heartland had retail rents of S$10,000 a month.

She added: “I also knew they were clearing out the sleazy businesses. I see there’s potential here. The church opening will definitely bring more footfall to other businesses.”

Glenn Ang, founder of personal training gym Raw Active, moved into the mall in January. For him, the location near several high-end residential projects and an international school is an advantage, he said. 

When he first visited Orchard Towers last November, there were many empty outlets. But this year, he has noticed an increase in the take-up of space.

“Businesses are moving in from neighbouring malls such as Far East Shopping Centre, as the chances of going en bloc here are quite low,” he said.

Should the building be sold en bloc, tenants would have to move out and find a new location.

Orchard Towers attempted a collective sale in 2023, but failed to obtain the required 80 per cent consent from unit owners. The targeted reserve price of S$1.6 billion would have made it the biggest collective deal in Singapore’s history. 

In a message on Cornerstone Community Church’s website, senior pastor Yang Tuck Yoong said that buying the Orchard Towers units provides the church with a “permanent home in Orchard with low en bloc potential”. 

“Furthermore, the retail units surrounding the auditorium offer space for... expansion should our footprint need to grow in the city.”

Low prospects for collective sale

As en bloc prospects for Orchard Towers dim, the building’s existing tenants have expressed interest in taking up more space. 

Curryleaf Multi Cuisine, which has been in the mall for more than 30 years, is taking over a 2,500-sq-ft basement unit next to its existing premises. According to Yenny Then, an agent with Huttons Asia, the unit has been vacant since at least September 2022. 

The eatery’s owner, Mohamed Nassar, said: “The image of Orchard Towers has almost changed. I see different kinds of people coming in. Previously there were a lot of drinkers, and now you have the office crowd.”

Stevenson Goh, the building’s management representative, said the management corporation strata title (MCST) is trying to secure an anchor tenant to occupy space in the basement of the rear block.

“We are trying to see if a supermarket, maybe even (Japanese food and products retailer) Don Don Donki, can come in.”

The location would be ideal given the residential catchment surrounding the building, he added. 

According to the MCST, the retail space on the first four floors of Orchard Towers is nearly 80 per cent occupied. The building also houses 19 storeys of office space above the mall in the front block, with 58 residential units and one floor of office space in the rear block. 

The management body has also been replacing the lighting in the building progressively, and overhauled the escalators last year.

“There are plans and visions for the building. We even considered upgrading the frontage, but all of this costs money,” said Goh.

Full revival

A full revival of Orchard Towers will be possible only through a concerted effort by unit owners to align the strata-titled property’s tenant mix, consultants said.

For instance, family-oriented F&B outlets, gyms, as well as tuition, music and education centres could create synergy in the mall, said Edwin Loo, an associate director at real estate consultancy Cistri. Moreover, such businesses cater to the relatively wealthy catchment within the Tanglin neighbourhood, where Orchard Towers is located, he added.

“This is, of course, predicated on the ‘stigma factor’ associated with the previous uses in the building eroding over time,” he said.

“We are talking about a 12 to 24-month evolution of the property, which will also depend on the MCST’s own willingness to drive this change collectively with the unit owners.”

Businesses with dedicated followings, such as those in beauty and wellness, may be able to attract crowds and generate foot traffic for the mall, said Ethan Hsu, Knight Frank Singapore’s head of retail.

Chua Yang Liang, JLL head of research and consultancy for South-east Asia, said: “Churches can potentially act as stable anchor tenants, as we’ve seen with examples like City Harvest Church at Suntec Singapore Convention and Exhibition Centre, which generates steady foot traffic on weekends...

“However, the key question remains whether this increased pedestrian traffic will translate into broader commercial benefits for the mall and its other tenants.”

He added: “Church services often occur during specific times, which may not align with traditional retail peak hours, potentially limiting the spillover effect. The demographics of the church congregation also play a crucial role – ideally, their profile should match the target market of other mall tenants for maximum benefit.”