Three compete for Changi T3 sports contract

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Global Brands leads the bidding for the Singapore Changi airport terminal three sports concession

The football goods retailer Global Brands has tabled the highest bid in the tender for the Singapore Changi airport terminal three sports concession. It has promised to pay the Civil Aviation Authority of Singapore either 15% of monthly sales or a minimum monthly guarantee of S$37,500 ($24,509), whichever is higher.

VGO tabled the second highest bid, offering 15% of total monthly sales or S$31,200 ($20,392) monthly rent.

Market One submitted the lowest and most complex financial bid, offering 7% of monthly sales up to S$129,000 ($84,313) or a minimum monthly rent of S$8,000 ($5,228). If monthly sales rise above S$129,000, the retailer will pay 8% of sales or rent of S$11,000 ($7,189) per month. If monthly sales reach S$149,000 ($97,385), VGO has promised to pay 10% of sales or S$15,400 ($10,065) depending on which is higher. The retailer will pay 11% of monthly sales if they exceed S$179,000 ($116,993), or a minimum monthly rent of S$19,100 ($12,484).

The three-year contract is due to begin on January 1 2008 but may open later if operations have not begun at the terminal by that date. There is no option for renewal at the end of the three-year tenancy.