SINGAPORE: Singtel has announced plans to redevelop its Comcentre headquarters at an estimated cost of more than S$2 billion, the telco announced on Wednesday (Feb 23).
The building on Exeter Road near Somerset MRT station has been in operation since 1979.
“Envisioned as a smart building of the future incorporating the latest sustainable designs and digital technologies, the next generation office development will house Singtel’s modern new headquarters besides offering progressive and optimised hybrid workplaces to other tenants,” the company said in a press release.
Singtel added that the cost of the development, including land costs, is estimated to be in excess of S$2 billion.
Two developers have been shortlisted in the first phase of the tender based on the quality of their design concept, asset valuation and track record. The tender process will close in March and Singtel said it expects to make the final appointment by May.
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.
“We’re truly excited to be working with the authorities to rejuvenate the Orchard Road precinct to prepare for the post-pandemic world and reinvigorate our future workplaces,” said Singtel CEO Yuen Kuan Moon.
As the anchor tenant of the new development, Singtel will occupy around 30 per cent of the space. The remaining space will be leased out to tenants looking for modern offices in the heart of Orchard Road.
“Maximising the unique development potential of Comcentre will significantly enhance its value in a vicinity where Grade A office developments are in short supply,” said Mr Yuen.
The new Comcentre, which is set to be completed by 2028, is expected to have a total gross floor area of over 110,000 sq m comprising Grade A office buildings, a retail component and Singtel’s existing Orchard Exchange, which houses critical telecom infrastructure.
“It is planned to be well integrated with the surrounding neighbourhood and will cater for a future underground connection to Somerset MRT,” said the telco.
“Singtel has also obtained in-principle approval from the Singapore Land Authority to extend the lease on all the lots that make up Comcentre to 2089.”
Singtel will relocate from Comcentre in 2024 in preparation for the redevelopment and employees will shift to temporary spaces at other Singtel premises.
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