JP Morgan points out that Singapore Telecommunications
Singtel has announced that it plans to consolidate its data cenre operations of its five older properties into its its next generation AI data centre in Tuas, which could be ready as soon as 1Q2026.
Additionally, 38A Kim Chuan Road is a build-to-suit property by CLAR completed in 2010 with Singtel signing a lease for a period of 20 years plus a 10-year extension option. "We understand the original 20-year leases have been restructured with staggered lease expiries from 2025 onwards. CLAR has been exploring various options for its properties including back-filling any vacated space and redevelopment opportunities. While the potential exit of Singtel is a negative, we see this risk being manageable with upside from potential redevelopment," JP Morgan says.
CLAR closed at $2.88 on Sept 24,
