King Power tops field of six in Changi T3 confectionery bid

Stefanie Ives

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King Power Group (Hong Kong) emerged as the highest bidder for the Singapore Changi airport terminal three confectionery offer.

King Power Group (Hong Kong) has offered the highest bid for the confectionery tender at Singapore Changi airport terminal three. For the first location, in departures and transit lounge north, it has promised to pay the Civil Aviation Authority of Singapore (CAAS) the highest option of either 30% of total monthly gross sales or a minimum monthly guarantee (MMG) of S$196,875 ($128, 676) in year one, S$216,563 ($141, 544) in year two and S$238,219 ($155, 698) in year three.  For the second location, in departures and transit lounge south, it has bid 30% of total monthly gross sales or a MMG of S$284,288 ($185,809) in year one, S$312,716 ($204,389) in year two and $238,219 ($155,698) in the final year of the contract.

Gebr Heinemann and partner Kwang Sia also bid heavily in a tender that, if successful, would mark Heinemann’s first business in Asia/Pacific. The partnership chose not to bid for the first location but for the second it offered 30% of total monthly sales or an MMG of S$280,000 ($183,006) in the first year, S$294,000 ($192,157) in the second and S$308,700 ($201,765) in the third, whichever is highest.

Dufry Singapore has bid for both stores. For the first location they promised either 30% of gross sales or S$137,500 ($89,869) for monthly sales up to S$383,333, ($250,544) S$162,500 ($106,209) for sales above $383,333 and up to S$475,000,($310,457) and S$190,000 ($124,183) for sales above $475,000. For the second location Dufry offered 30% of monthly sales or S$183,333 ($119,825) for monthly sales up to S$500,000 ($326,797), S$250,000 ($163,398) for sales above S$500,000 and up to S$700,000 ($457,516), and S$291,666 ($190,631) for sales above S$700,000.

DFS Venture Singapore tabled an offer for the first store of either 30% of monthly sales or a rent of S$195,800 ($127,974), whichever is higher. For the second store it is willing to pay either 30% of monthly sales or S$300,800 ($196,601), whichever is higher.

Focus Network Agencies (Singapore) bid for both stores. For the first it said that it would pay either 30% of monthly sales or S$100,000 ($65,359) of sales up to S$300,000 ($196,078) and S$180,000 ($117, 647) for sales above S$300,000 ($196,178) and up to S$400,000 ($261,438), whichever is higher. For the second location it offered either 30% of monthly sales or a guarantee of S$160,000 ($104,575) for monthly sales up to S$500,000 ($326,797), S$230,000 ($150,327) for sales above S$500,000 and up to S$700,000, and S$250,000 ($163,399) for sales above S$700,000, whichever is higher.

Swizzle offered either 30% of monthly sales for the first shop or a monthly rent of S$148,000 ($96,732), whichever is higher, plus 18% of incremental sales above S$450,000 ($294,117). For the second shop it bid 30% of monthly sales up to S$650,000 ($424, 836) or a guarantee of $238,000 ($155,555), whichever is higher, plus 18% of incremental sales above S$650,000.

The three-year contract with an option to extend by two years is expected to start from either January or February 2008 or from when T3 opens.