Singtel today announced that it is partnering with global real estate group Lendlease to redevelop its Comcentre headquarters into a USD 3 billion world class sustainable workplace featuring the latest smart building and digital technologies. Singtel and Lendlease have agreed to enter into a joint venture for the redevelopment, where Lendlease will subscribe to 49% of the shares of the joint venture company in 2024 and Singtel will hold 51%. The joint venture company will pay USD 1.63 billion to Singtel for the land cost of the development, in or around 2024. Singtel will be responsible for the differential premium payable on the redevelopment.
Singtel Group CEO Mr Yuen Kuan Moon said, “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, Mr Tony Lombardo, said, “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 expected to have a total gross floor area in excess of 110,000 square metres, comprising two 20-storey buildings of premium grade/Grade A office space with views of the CBD and surrounding Orchard precinct. At ground level, a large sheltered arcade and vibrant urban space will offer almost 3,000 square metres of F&B, lifestyle and retail space, including Singtel’s new flagship store. The proposed design also includes an elevated rooftop park featuring a 300-person auditorium, a running and walking track and integrated wellness hub.
Mr Yuen added, “We look forward to partnering Lendlease to create a lush green oasis in the heart of Orchard Road. With its unparalleled location in the centre of Singapore’s famous shopping belt with a modern urban design, smart workplace features and commanding presence, Comcentre will be an attractive location for progressive companies seeking a prestigious ‘deep green’ business address.”
Forecast to be completed in 2028, the development will create a new asset that delivers long-term recurring revenue for Singtel, as demand for the new development is expected to be high given the scarcity of Grade A office space and limited upcoming supply in the Orchard Road precinct.
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