The Civil Aviation Authority of Singapore (CAAS) has announced that there are eight bidders for the three-year watch concessions across three locations for the Departure/Transit Lounge T3 at Singapore Changi Airport and DFS is in

pole position, just ahead of Leisure Image and Gassan Diamonds.
The tender closed on March 1 2007 for a contract which begins on March 1 2008 and expires on December 31 2010 and the CAAS is expected to award the concession within the next week to 10 days. The bidders include: Cortina Watch Pte Ltd; DFS Venture Singapore; Gassan Diamonds (Singapore); Leisure Image; Luxury Ventures; LVMH Watch & Jewellery Singapore; Richburgh Holdings; and The Swatch Group.

For all three outlets bid together, the leading bidders are:

DFS Venture Singapore S$15,616.800 ($10,215,533)
Leisure Image S$15,048,000 ($9,843,328)
Gassan Diamonds S$15,001,200 ($9,813,768)
Richburgh Holdings S$14,436,000 ($9,445,733)
Luxury Ventures/Valiram S$12,204.000 ($7,984,605)
Cortina Watch S$10,260,360 ($6,709,661)

For outlet B only the bids were:

LVMH Watch & Jewellery Singapore S$3,900,000 ($2,551,479)
The Swatch Group S$2,880,000 ($1,884,740).

For full details of all bids, see below:

The Cortina Watch company has bid for all three locations in one package offering an additional rental of either 18.5% of the total monthly gross sales; or a minimum monthly guarantee of S$285,010 ($186,432); whichever is the higher of the two. This corresponds to a minimum annual guarantee total over 36 months of: S$10,260,360 ($6,709,661).

DFS Venture Singapore has offered an additional rental of either 20% of the total monthly gross sales; or a minimum monthly guarantee of S$433,800 ($283,757); whichever is the higher of the two, plus 8% on incremental sales above S$22,000,000 ($14,390,635), if annual sales reach S$22,000,000. This corresponds to a minimum annual guarantee total over 36 months of: S$15,616.800 ($10,215,533).

Gassan Diamonds has split its offer into two options. The first for outlets A1 and A2 offers an additional rental of either 20% of the total monthly gross sales or a minimum monthly guarantee of S$333,360 ($218,099) in Year 1; S$370,400 ($242,317) in Year 2; and S$407,440 ($266,548) in Year 3; whichever is higher of the two. This corresponds to a minimum annual guarantee total over 36 months for the two outlets of: S$13,334,400 ($8,721,423).
Gassan's second option for all three outlets of A1, A2 and B offers an additional rental of either 20% of the total monthly gross sales; or a minimum monthly guarantee of S$375,030 ($245,356) in Year 1; S$416,700 ($272,603) in Year 2; and S$458,370 ($299,863) in Year 3; whichever is the higher of the two. This corresponds to a minimum annual guarantee total over 36 months for all three outlets of: S$15,001,200 ($9,813,768).

Leisure Image has offered an additional rental of either 20% of the total monthly gross sales for all three outlets; or a minimum monthly guarantee of S$418,000 ($273,467); whichever is the higher of the two. This corresponds to a minimum annual guarantee total over 36 months for all three outlets of: S$15,048,000 ($9,843,328).

Luxury Ventures has offered an additional rental for all three outlets of either 18% of the total monthly gross sales on the first S$1,800,000 ($1,177,610) of sales and 20% on incremental sales above S$1,800,000; or a minimum monthly guarantee of S$324,000 ($211,972) in Year 1; S$339,000 ($221,785) in Year 2; and S$354,000 ($231,599) in Year 3; whichever is higher of the two. This corresponds to a minimum annual guarantee total over 36 months for all three outlets of: S$12,204.000 ($7,984,605).

LVMH Watch & Jewellery Singapore also makes its international debut as travel retail contract bidder for outlet B only, offering an additional rental of either 20% of the total monthly gross sales; or a minimum monthly guarantee of S$75,000 ($49,067) in Year 1; S$100,000 ($65,423) in Year 2; and S$150,000 ($98,135) in Year 3; whichever is the higher of the two. This corresponds to a minimum annual guarantee total over 36 months for outlet B only of: S$3,900,000 ($2,551,479).

Richburgh Holdings has offered an additional rental for all three outlets of either 20% of the total monthly gross sales; or a minimum monthly guarantee of S$401,000 ($262,348); whichever is the higher of the two. This corresponds to a minimum annual guarantee total over 36 months for all three outlets of: S$14,436,000 ($9,445,733).

The Swatch Group has restricted its offer to outlet B, offering an additional rental of either 20% of the total monthly gross sales; or a minimum monthly guarantee of S$80,000 ($52,327); whichever is the higher of the two. This corresponds to a minimum annual guarantee total over 36 months for outlet B only of: S$2,880,000 ($1,884,740).