Capital Mall Trust the owner of Plaza Singapura, the popular hangout next to Atrium@Orchard, according to the Today Newspaper, their shopfronts will be merged and enhanced. There will also be an elevated walkway, providing Plaza Singapura users with direct connectivity to the busy Dhoby Ghaut MRT interchange station in The Atrium’s basement. [See Related Post on Atrium@Orchard]

This latest purchase of the $839.8 million is expected to increase the value of both buildings, and the attractiveness of the site into becoming a ultra lifestyle and commercial hub, with hip hangout places, lots of great shopping.  Capital Mall Trust management believe that The Atrium is “Under-rented” and believes it can double monthly rents from an average $5.87 psf to between $10 and $12 psf by 2010 to 2011, even after taking into account the rental cap conditions in certain leases. Key tenants include Barclays Capital and Temasek Holdings.

CapitaMall trust’s deputy chairman Liew Mun Leong said: “The proposed integration of The Atrium@Orchard and Plaza Singapura will create one of the largest integrated developments along Orchard Road, with approximately 170m of prime retail frontage and over 900,000 sq ft of net lettable space.”

This proves that Grade-A office space is still very much sort after, and will still command a premium rental in the years to come. Even if office space crunch eases up, which is expected in 2010, we do not know if office rents will slide, yet,  there are too many random factors involved.