On 31 October 2011, Suntec REIT (Suntec) announced a S$410m asset enhancement initiative (AEI) to Suntec City by carrying out major renovation works to its retail space and sprucing up its exhibition venues. To be completed over four phases, S$230m was budgeted for the renovation works at Suntec City Mall while S$180m was budgeted to makeover Suntec Singapore (convention and exhibition). Upon completion, the net lettable area (NLA) was expected to increase from 855,000 sq ft to 980,000 sq ft. The revamped mall would provide shoppers with a large variety of specialty retail shops and new-to-market concept stores. There would also be more F&B choices, including a new sky garden offering alfresco dining.

During the Media and Analyst briefing, the then CEO of Suntec REIT, Mr Yeo See Kiat, shared that rents and net property income of the revamped mall were expected to increase by a respective 25% and S$23 million, which translated to a 10.1% return on investment for unitholders. The makeover started in the middle of 2012 and ended in 2Q15. This case would facilitate students to undertake a strategic review of Suntec’s AEI and its financial impact.