Just heard about this relatively new scheme (it was announced in July 2009) from Far East Organization. The scheme, known as ‘Rental Space for Equity Programme’, looks to encourage first-time entrepreneurs looking to start their retail business but do not have the necessary capital to pay for rental space.
They have 6 participating malls are
- Central (Clarke Quay)
- Pacific Plaza (Orchard)
- Far East Square (Near CBD)
- Square 2 (Novena)
- Orchard Central (Orchard)
- West Coast Plaza
According to their press release, elgible tenants under this scheme will issue Redeemable, Convertible, Cumulative, Preference Shares (RCCPS) in lieu of their monthly base rent, with a cumulative dividend of 4% per annum.
After 1-2 years, they could opt for redemption, or redeem it at the end of the two/three year lease. Far East Organization also in this case, may convert their issued RCCPS to ordinary share.
Far East Organization are looking for vendors with exciting new brands as well as existing retailers who want to expand their stores and presence in Singapore.
If you think you have the mad chops, why not give it a try, it sounds like a pretty good deal when you’re just starting out.
Editor Note: When visiting their website, in order to view the brochure and press release, you will have to save it to your system first and rename it to add the .pdf extension. At the current press time, it would appear that the files downloaded from the site, does not come with the necessary file extension. We’ve wrote an e-mail to Far East Retail to inform them about this error.