By Cheah Ui-Hoon

THEY are among the original tenants at Dempsey - the ones who generated the laid-back, lost-in-time ambience at the former military barracks through the antique furniture and artefacts they purveyed for 14 years. But now they have become casualties of Dempsey's recent transformation into an F&B hub and lifestyle hangout.

Facing higher rents and a change in the area's demographics, stores like Jehan Gallery, Journey East, Red House, Eastern Discoveries and Mountain Looms will be moving out by the end of this month.

Most of these shops have been at Dempsey since 1995 when it was first leased for commercial activity. But while the owners are sad to leave, they are not too sorry, because the environment has changed. And the good news for their regular clients is that they are moving to bigger premises elsewhere.

Perhaps the most regretful is Ben Fernandes, in his 70s, who runs Mountain Looms more as a gallery than a retail store, showcasing his collection of antique rugs. 'The store owners are the ones who made Dempsey what it was and who created the environment it was known for,' he says. 'There's no merit in making existing tenants like us move out.'

Because Mountain Looms is more of a retirement hobby than a business, it did not make sense to pay a higher rental. Mr Fernandes, a former banker and financial consultant who started collecting rugs 30 years ago, says his collection is not for sale except when he wants to 'cull' pieces.

He would have liked to stay at Dempsey, where he has made a lot of friends because customers frequently came by to chat. But now he has made plans to re-open as a private museum in the Tan Boon Liat Building in Outram Road.

Incidentally, four other stores are also moving to Tan Boon Liat, but as a collective called The Third Storey, having taken units on the third level of the warehouse building.

'They asked me to join them on the third floor but the space I looked at wasn't suitable for the gallery I had in mind, so now I'm on the seventh floor,' says Mr Fernandes.

Because rent at Tan Boon Liat Building is considerably lower than at Dempsey, he is 'upgrading' from his present 1,600 sq ft space to 2,700 sq ft. 'The new place will be bigger, but I'm paying rent similar to what I paid for Dempsey 14 years ago,' he says. And in view of this 'saving', he has decided to create a better setting for his collection.

'I had a wonderful time at Dempsey,' says Mr Fernandes. 'Friends asked me not to leave, but they're not the ones paying rent.'

It is believed that rents at Dempsey have been raised from $2.50 per sq ft to $6.50 on average.

A month ago, some of the original tenants advertised their collective move to Tan Boon Liat Building in the newspapers, as well as their moving sales.

The move was initiated by Jehan Gallery's owners, brothers Nasser and Hadi Nishaburi. 'The impression that visitors now get about Dempsey is that it's an expensive place, which certainly wasn't true of our businesses,' says Hadi Nishaburi, adding that Jehan arrived at Dempsey in 1995 when it leased an 8,000 sq ft space from Tanglin Warehouse.

The Nishaburis see the move as a blessing. The sentimental attachment they have isn't so much to Dempsey but to their business, customers and neighbours.

And that is why it wasn't difficult to get other retailers to move with them. 'We're like a village. We've been friends for many years,' says Mr Hadi.

Change in customer

profile Darika Suter, owner of Eastern Discoveries, which sells Indochinese antiques, says: 'Since we were faced with this crisis together, we decided to do something together. It was very peaceful when we moved here, but not any longer.'

Because there is so much traffic, fewer people actually walk around, she says. And while the F&B outlets have brought more people to Dempsey, they tend to be people who don't appreciate or know much about antiques.

'I don't mind sharing about the antiques, but the people who drop by aren't very interested,' she says. 'They're just looking at the price of a piece and wondering why it's four to five figures. We're quite happy to move out, actually, because the situation has changed.'

Most of the customers in the earlier days were expatriates and visitors on business trips - and some are quite well-known. Ms Suter has sold antiques to Sylvester Stallone and former Indonesian president Megawati Sukarnoputri.

There was also an American tycoon who would rack up six-figure purchases in 20 minutes. He was a customer for four years, and when he came last year he even bought antiques to be shipped to his friends.

But with a 150 per cent rent rise for Eastern Discoveries' 2,000 sq ft space, it would be less costly to close shop and travel, says Ms Suter, a former Citibanker and Thai national, who moved to Singapore 20 years ago.

Anita Sam, who owns Journey East, which sells outdoor, recycled and restored wooden furniture, says the rent rise isn't the main reason people are leaving. 'When the landlord promises you more traffic with the increased rent, it's okay if it suits you,' she says. 'But for our business, higher traffic doesn't work. Ours is a targeted business and space.

'Our business really flourished here because it was an ideal mix of tenants in an unspoilt part of Singapore that our customers really appreciated. They would drop by to chit chat instead of rushing in and out.'

Her best memories of Dempsey are the relaxed atmosphere and the 'village feel'. She reminisces about the times when store owners put on outdoor movie screenings and other social gatherings for customers. But she saw the 'writing on the wall' two years ago when restaurants started moving in, and says Dempsey has now lost its idyllic haven feel.

'People come now to eat and drink, and there's so much traffic - buses, trucks, cabs, cars - every day,' laments Chua It Tuck, owner of Red House, which deals in antiques and customised furniture.

Rent was previously $2.50 psf for his 5,000 sq ft space. Country City, which won the tender for additional space at Dempsey at the end of last year, wanted to up it to $6.50 psf.

'I'd have to raise the prices of my furniture to pay that kind of rent, which isn't fair to my customers - not in this economic climate,' says Mr Chua.

But now, with lower rent at Tan Boon Liat, where he is paying $13,000 for a bigger 6,000 sq ft space, he might even be able to lower his prices.

Jehan Gallery is also upping its retail space, to 9,000 sq ft at Tan Boon Liat, while Journey East is expanding to three separate locations, with a central showroom at Tan Boon Liat and two concept stores in Joan Road and Kung Chong Road.

'The Third Storey at Tan Boon Liat will also be the third chapter in our retail lives,' says Ms Sam, describing how the retailers moved to Dempsey from other locations before becoming friends, and are now moving out together.

She wonders what is in store for Dempsey as mass market names and more commercial brands come in. She feels the area is losing its unique selling point - its niche businesses.

Whatever it is, change has definitely come. 'The entire block 26 is moving out, while in block 13, three of us have moved out and the other two furniture shops are downsizing,' she says. 'So whether you're staying or going, there will be changes.'

Margaret White, an Australian who has lived in Singapore for 16 years, was a regular Dempsey visitor for the past 11 years. 'I'm more than a little sad to see these shops move out as there are few places with this kind of ambience,' says the museum volunteer, who came by to take photographs of the stores and locations on Tuesday.

Will the new 'managers' of Dempsey still manage to preserve the charm that first attracted its fans? Or will it become a victim of its own transformative success? Only time will tell, in this colonial corner turned modern lifestyle destination.

This article was first published in The Business Times.