{"id":9047,"date":"2017-02-05T07:36:32","date_gmt":"2017-02-04T23:36:32","guid":{"rendered":"https:\/\/www.99.co\/blog\/singapore\/?p=9047"},"modified":"2022-07-01T04:06:00","modified_gmt":"2022-06-30T20:06:00","slug":"4-lessons-investors-mustafa-centre","status":"publish","type":"post","link":"https:\/\/www.99.co\/singapore\/insider\/4-lessons-investors-mustafa-centre\/","title":{"rendered":"4 lessons investors can learn from the sale of Mustafa Centre"},"content":{"rendered":"<div id=\"bsf_rt_marker\"><\/div><figure id=\"attachment_9048\" aria-describedby=\"caption-attachment-9048\" style=\"width: 800px\" class=\"wp-caption alignnone\"><img decoding=\"async\" class=\"wp-image-9048\" src=\"https:\/\/www.99.co\/singapore\/insider\/wp-content\/uploads\/2017\/02\/mustafa-centre-singapore.jpg\" alt=\"Mustafa Centre is known for selling anything and everything you can dream of buying\" width=\"800\" height=\"600\" srcset=\"https:\/\/www.99.co\/singapore\/insider\/wp-content\/uploads\/2017\/02\/mustafa-centre-singapore.jpg 2048w, https:\/\/www.99.co\/singapore\/insider\/wp-content\/uploads\/2017\/02\/mustafa-centre-singapore-380x284.jpg 380w, https:\/\/www.99.co\/singapore\/insider\/wp-content\/uploads\/2017\/02\/mustafa-centre-singapore-940x705.jpg 940w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/><figcaption id=\"caption-attachment-9048\" class=\"wp-caption-text\">Mustafa Centre is known for selling anything and everything you can dream of buying<\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\">Mustafa Centre is closing its Serangoon branch, and moving stock back to the main store. The reason is the slated demolition of Serangoon Plaza, probably sometime this year. Mustafa Centre has occupied three floors of Serangoon Plaza since 1985, a whopping 65,000 square feet. Here are some interesting property lessons to pick up from their history, which apply to both home and commercial spaces:<\/span><\/p>\n<ol>\n<li>\n<h3><b> Walk the grounds yourself, and do so often<\/b><\/h3>\n<\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">The boss of Mustafa Centre, Mr. Mustaq Ahmad, is known for being hands-on. Most of the staff can attest to how he\u2019s often the first to work, and the last to leave. This isn\u2019t just good for business, but also for gauging the property market around you.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">When you frequent your property, you can keep an eye on latest developments. You\u2019ll know if a new development is coming up nearby, which is important for gauging the competition (will they undercut you for tenants?) <\/span><\/p>\n<p><span style=\"font-weight: 400;\">You can also see the popularity (or lack of it) in surrounding amenities like hawker centres and parkland. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">For commercial properties, you need to be present to see opportunities. A large part of Mustafa Centre\u2019s success is due to their responsiveness to shoppers \u2013 they know how to configure the floor space of the mall to maximise returns per square foot. This is derived from more than sales figures; it comes from direct observation of customer behaviour, and noting foot traffic in different parts of the mall. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Sometimes, just seeing what kind of people frequent your property\u2019s surroundings (students, housewives, young professionals, and so forth) is enough make a strategic difference in your plans.<\/span><\/p>\n<ol start=\"2\">\n<li>\n<h3><b> Ask before doing<\/b><\/h3>\n<\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">Mustafa Centre was <\/span><a href=\"http:\/\/singaporeseen.stomp.com.sg\/this-urban-jungle\/mustafa-centre-fined-17000-for-fire-safety-violations\"><span style=\"font-weight: 400;\">once fined $17,000<\/span><\/a><span style=\"font-weight: 400;\">. This was for posing a fire hazard (the store was too packed), and for unauthorised use of a corridor for retail purposes. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">In Singapore, owners of commercial property have long had a \u201cdo first, apologise later if you have to\u201d attitude. The prevailing sentiment is that it\u2019s harder and slower to ask for permission (such as to stack things dangerously close to the fire hose), than to just do it and apologise later. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">But sometimes, that apology is accompanied by a fine. It\u2019s even worse if something <\/span><i><span style=\"font-weight: 400;\">does <\/span><\/i><span style=\"font-weight: 400;\">go wrong \u2013 such as someone dying in a fire \u2013 and then resulting in a lawsuit.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For landlords of residential properties, always get permission to make renovations and alterations. If you don\u2019t, you too might get \u201cclosed down\u201d while you have undo your renovations. And the cost of that vacancy can amount to several months of rental income.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As slow and annoying as it may be, <\/span><i><span style=\"font-weight: 400;\">ask before you do. <\/span><\/i><span style=\"font-weight: 400;\">Never assume your \u201csmall\u201d changes are also small to our authorities.<\/span><\/p>\n<ol start=\"3\">\n<li>\n<h3><b> The key to making your property work is simple: be useful<\/b><\/h3>\n<\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">Mustafa Centre is known for selling virtually anything. From gold to groceries to electronics, to money changers and flight tickets, and even cars for a brief period. Even the cashiers in Mustafa Centre can draw money for you, as if they\u2019re ATMs.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This probably goes back to Mr. Mustaq Ahmad\u2019s past, in which he began by selling handkerchiefs from a roadside stall.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The key thing to note is that Mustafa Centre, and its management, seldom suffer from tunnel vision. They observe what\u2019s needed, and adapt to provide the service. They are also quick to cancel what doesn\u2019t work (the short-lived car business). <\/span><\/p>\n<p><span style=\"font-weight: 400;\">The property moves with them in this capacity, changing to sell whatever\u2019s needed.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">That\u2019s a good perspective for any landlord to have. Rather than fix your focus on one thing (e.g. My property is for expatriates, or my property is for low cost retail tenants), try to be open-minded. When you change or upgrade your property, focus on <\/span><i><span style=\"font-weight: 400;\">being useful <\/span><\/i><span style=\"font-weight: 400;\">to prospective tenants (and know what that is, see point 1).<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Don\u2019t make changes to your property solely on the basis on what <\/span><i><span style=\"font-weight: 400;\">you <\/span><\/i><span style=\"font-weight: 400;\">think would be great. Sometimes, no one wants to pay more rent for an apartment just because of its walk-in wardrobe. Just like no one may want to rent your commercial space for F&amp;B, no matter how badly you want to be the landlord of a famous restaurant. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Let your tenants be the main decider of changes and upgrades.<\/span><\/p>\n<ol start=\"4\">\n<li>\n<h3><b> Look for tenants that are a low cost provider of essentials<\/b><\/h3>\n<\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">This is also a trait Warren Buffet looks for in businesses. Commercial property owners should learn one important lesson from Mustafa Centre:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you want a long term tenant with good prospects, pick a low cost provider of essential items or services. Think Sheng Siong, instead of a fancy gourmet deli with $500 hams, or a luxury goods retailer. A low cost provider of essentials is a recession resistant, and often highly capitalised business. <\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Mustafa Centre is closing its Serangoon branch, and moving back to the main store. We take a look at its history to see how it has thrived.<\/p>\n","protected":false},"author":21,"featured_media":54629,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"","_relevanssi_noindex_reason":"","_lmt_disableupdate":"","_lmt_disable":"","_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[53653,53593,57131],"tags":[],"persona":[],"class_list":{"2":"type-post","10":"entry","11":"has-post-thumbnail"},"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v25.7.1 (Yoast SEO v25.7) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>4 lessons investors can learn from the sale of Mustafa Centre<\/title>\n<meta name=\"description\" content=\"Mustafa Centre is closing its Serangoon branch, and moving back to the main store. 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