SingPost is “examining options” of its property holdings that consist mainly of the SingPost Centre, says CEO Vincent Phang at the company’s annual general meeting on July 21.
Besides housing the postal operator’s headquarters and mail processing facility, there are also commercial spaces including office space as well as a retail mall, which has a gross floor area of 269,000 sq ft and a net lettable area of 178,000 sq ft.
The redevelopment of the mall space, costing some $150 million, was completed in 2017.
The mall space is managed by CapitaLand, which of course is known for its string of malls and REITs.
“We recognise the potential of the Paya Lebar precinct with the government’s latest urban development plans,” says Phang, without referring to adjacent developments including Paya Lebar Quarters and Paya Lebar Square – all of which are in the vicinity of the Paya Lebar MRT interchange station.
“We are examining options to improve the value and hence yield of the property,” he adds.
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Phang notes that property contributions to SingPost’s financial results have been resilient despite the “challenging leasing conditions” over the year.
As at March 31, occupancy of its properties remained high at 96.6%, says Phang.
SingPost’s property segment contributed an operating profit of $52.9 million for its year ended March 31, up from $50 million recorded in the preceding year.
SingPost closed July 21 at 64 cents, up 0.79% for the day and down 3.03% year to date.
