An Investor’s Guide: Who Owns Orchard Road Anyway?

Credit: Calvin Teo

Have you walked down our Garden City’s famous shopping belt, Orchard Road, recently?

I was not expecting to see the sheer number of people I did on Orchard Road when I was there yesterday. The amount of foot-traffic on this famous road seems to move only in one direction year after year – up.

Imagine that you are a landlord on one of the properties on Orchard Road. Wouldn’t you feel happy just by standing on the roadside and watching the crowd walk by with their handfuls of shopping bags?

Ho ho ho…

As it turns out, we can indeed own many of the properties on Orchard Road, albeit indirectly. There are numerous properties in the shopping belt that are owned by companies or by real estate investment trusts that are listed in Singapore.

If you are interested in the properties on Orchard Road, here is a quick guide on how you can get exposure to some of them:

1) ION Orchard

One of the newest properties on Orchard Road, ION Orchard has transformed the landscape of the area. This property is actually a joint project between Capitaland Limited (SGX: C31), through its subsidiary, CapitaLand Mall Asia, and Hong Kong-based Sun Hung Kai Properties. In effect, Capitaland owns 50% of the iconic ION Orchard.

2) Wisma Atria and Ngee Ann City

Both properties are partially owned and managed by Starhill Global Real Estate Investment Trust (SGX: P40U). The REIT currently owns 74.23% and 27.23% of the total share value of the strata lots in Wisma Atria and Ngee Ann City, respectively.

3) Mandarin Gallery and Mandarin Orchard Singapore

The Mandarin Orchard Singapore hotel and Mandarin Gallery retail avenue is currently owned and managed by OUE Hospitality Trust (SGX: SK7).

The net property incomes contributed by Mandarin Orchard Singapore and Mandarin Gallery were S$74.9 million and S$28.3 million, respectively, in 2014. The combined value of both properties currently stands at more than S$1.7 billion.

Foolish Summary

Feeling impressed by any of the buildings you come across while shopping along Orchard Road? Who knows, you just might be able to share in the economic benefits of some of them.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore writer Stanley Lim doesn’t own shares in any companies mentioned.