9 Penang Road is the latest location selected by UBS –Asia’s biggest wealth management bank plans to move from One Raffles Quay and Suntec City and consolidates it’s country’s office footprint in this new place.
The New Grade A Office space is just opposite to the Dhoby Ghaut MRT Station, the development in Penang Road has the retail space of around 15,000 sq. ft. and the net provided area for office space is 352,000 sq. ft.
If the bank’s decision is to lease the entire place, this coming up on the previous Park Mall area’s dealing will become one of the largest office leasing deals in the last few years
Market watchers comprehends that relocating the space from the major financial district of Singapore is not solely due to the financial savings but the wish to operate as a campus-style office is the main motivation.
Here, the bank will have the whole functional building with the canteen and the bank’s own chefs to cook for the staff. According to the market news, the lease deal for 9 Penang Road has already done
9 Penang Road has its own advantages because of its connectivity to other regions as Dhoby Ghaut station serves as the interchange for the North East, North-South, and Circle lines and it is present in the vicinity of the Orchard Road shopping belt.
At present, at One Raffles Quay’s North Tower, the bank leases about 230,000 sq. ft. which is expiring at the end of the next year.
And at Suntec City, the total area is about 90,000 sq. ft. with the lease is valid till early 2021. This could be one more reason to move from Singapore’s financial district.
Market watchers say that the new 10-storey office will be finished at the end of this year and the bank will require some time to take over the building.
It is anticipated that the bank will continue the backroom operations at Hansapoint in Changi Business Park.
According to the analysts, the bank could have discussed for a high single digit as the gross effective per square foot rent on a monthly basis for the new building.
If UBS would have decided to renew the old lease, then the rental for the One Raffles Quay and Suntec City to be paid would be in the low double-digit and high single-digit respectively.
According to the office leasing agents, the characteristics of One Raffle Quay are analogous to 9 Penang Road, although the old one was concluded in 2016 – more than ten years ago.
But the new building is advantageous in offering 24,000 sq. ft. floor plates which are bigger than the 18,000 sq. ft. of the North Tower of One Raffles Quay.
The bank’s choice of leaving the well-established business district at Marina Bay and Raffles Place is the positive sign of the expansion of the central business vicinities of the region, thanks to the MRT connectivity, better food and beverage offerings, and improved quality building, suggest market watchers.
Between SingHaiyi Group, Haiyi Holdings, and Suntec Reit, the new building is developed by a 35:35:30 joint venture at S$800 million to be the total cost of the development reported by the SingHaiyi Group’s website.
The 9 Penang Road property is designed to have eight floors as office space in two wings – from floor three to ten.
Car parking space is designated in the basement plus second floor. The first floor is set for retail space.
Expiring in 2115, December, the lease of the site has been extended up to 99 years.