Singtel, on June 1, announced that it is partnering global real estate group Lendlease to redevelop its Comcentre headquarters into a $3 billion world-class sustainable workplace.
The partnership will leverage on Lendlease’s development, construction and ongoing property and asset management services, complementing Singtel’s digital and technology leadership skills.
The development will be a net zero energy development built in line with carbon neutral construction principles. It will also feature the latest smart building and digital technologies.
The new development is expected to have a total gross floor area in excess of 110,000 sqm, spanning two 20-storey buildings of premium grade/Grade A office space. The offices will boast views of the central business district (CBD) and the surrounding Orchard precinct.
Singtel and Lendlease have entered into a joint venture (JV) for the redevelopment. Under the JV, Lendlease will subscribe to 49% of the shares in the JV company (JVCo) in 2024. Singtel will hold the remaining 51%.
The JVCo will pay $1.63 billion to Singtel for the land cost of the development around 2024. Singtel will fork out the remaining sum for the redevelopment.
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As the anchor tenant, Singtel is expected to occupy about 30% of the total space in the new development.
Singtel CEO Yuen Kuan Moon says, “The redevelopment of Comcentre is in line with our capital recycling strategy to unlock the latent value of our assets and invest the proceeds in growth areas where we can achieve higher returns. This is a strategic move that will further strengthen our financial position, bring about an exciting next-generation workplace for our employees, and contribute to the rejuvenation of the Orchard Road precinct.”
Lendlease Global CEO and managing director, Tony Lombardo, adds, “People around the world are increasingly demanding their workplaces operate more sustainably while incorporating the very latest smart building and digital technologies. That’s exactly what the new Comcentre stands to be. Singapore is, undoubtedly, one of the world’s great cities and we stand ready to work alongside Singtel to create one of the world’s great workplaces.”
The development is estimated to be completed in 2028.
Shares in Singtel closed 6 cents lower or 2.26% down at $2.59 on May 31.
