Singtel to spend $2 bil to redevelop then divest Comcentre HQ
Singapore Telecommunications (Singtel) has announced its plans to appoint a developer to jointly redevelop its Comcentre headquarters along the Orchard Road belt.
The redevelopment will maximise the Comcentre’s site potential and increase building efficiency with a view to unlocking value from the property, says the telco in its Feb 23 statement. The total cost of development, including land costs, is estimated to be in excess of $2 billion.
As part of its capital recycling strategy, Singtel will divest Comcentre to a joint venture company formed with the appointed developer and hold a majority stake in this joint venture.
The new building is expected to have a total gross floor area of over 110,000 sqm comprising Grade-A office buildings, a retail component and Singtel’s existing Orchard Exchange. It plans to include a future underground connection to Somerset MRT station on the North South Line.
As the anchor tenant, Singtel will occupy around 30% of the space. The remaining space will be leased out to other tenants, which will generate recurring income for the telco in the long term.
The new Comcentre is expected to be completed in 2028.
“Maximising the unique development potential of Comcentre will significantly enhance its value in a vicinity where Grade-A office developments are in short supply. We strive to optimise the capital we can unlock from existing assets to fund our growth initiatives including 5G and the regional expansion of our data centre business. We will continue to seek out opportunities to crystallise value from our extensive portfolio of assets,” says Singtel’s group CEO Yuen Kuan Moon.