Temporary Occupation Permit for the six-storey building on net lettable area of approximately 240,000 sq ft coming soon
The Singapore-based e-commerce branch of New York-listed Sea Ltd, SHOPEE, announced its full lease of the business park development located at 5 Science Park Drive.
The project features six stories and a frontage location along Ayer Rajah Expressway. The net lettable area of the site is estimated 240,000 sq ft.
The development expects to earn its Temporary Occupation Permit (TOP) any time soon.
The redevelopment project from formerly Fleming and Faraday buildings is by the Ascendas-Singbridge Group. Its location is close to Kent Ridge MRT Station.
According to market spectators, Shopee will pay roughly S$6 per square foot for its monthly rental, based on its long-term lease.
This is in connection with the expectations in the market for a new Science Park 1 development.
The much smaller area that Shopee occupies in the present is near the Ascent building, which is also under the ownership of Ascendas-Singbridge.
Sea Ltd, the parent company of Shopee, is operating the biggest gaming platform in South-east Asia, reportedly made a wider loss during the third quarter of the previous year due to the increasing investments in Shopee.
According to the report, the net loss skyrocketed to US$218 million in the previous months, ending in September 30, 2018.
This is far from its US$132.8 million record earlier in the year. The total revenue increased from US$94.1 million to US$204.8 million.
It was in October 2017 when the company went public. Garena, its digital entertainment recorded a revenue increase by 41 per cent, translating to a quarterly raise of US$112.5 million.
The company credits its growth to its first self-developed game, the popular Free Fire.
The ecommerce unit Shopee recorded a revenue increase of up to US$2.8 million in 2017 particularly during its third quarter.
Shopee confirmed its full lease of 5 Science Park Drive. The location garnered the Green Mark Platinum 2018 award as given by the Building & Construction Authority in Singapore.
The main contractor of the project is Nakano Singapore while its architects are Series Architects and Multiply Architects.
The brokerage firm for the leasing deal of Shopee is CBRE. Michael Tay, the advisor and transaction senior executive director of the property-consulting group refused to confirm the role of the group in the transaction.
However, he reiterated that Shopee’s demand for a quality and well-developed Singapore-based business park space is quite adamant.
Tay added that the only 5 Science Park Drive would be the business park space project in Singapore that will be up for completion this year.
The full pre-let of the project is confirmed before TOP.
Low-vacancy rate for the business park space submarket in the urban settings is the trend and this includes the one-north areas and Science Park along with the development at Mapletree Business City.
Such rate is comparable to the rest of the places in Singapore referring to further away locations such as Changi and Jurong.
CBRE Research announced its latest MarketView report specifically the two-tier market.
“The business parks are consistently attractive to occupiers reflecting their higher specifications especially locations in the city fringe.
Occupiers prefer not to widen their options for space despite the higher rents and tightening availability for such sites.”
There is a contrast in the preference of the occupier reflecting in the lease gap between the specific locations.
The 2018 fourth quarter data of CBRE illustrate the rental value average on a monthly basis of business park spaces in urban settings at S$5.80 psf.
This is 53% higher compared to the rate for the rest of Singapore at S$3.80 psf.
The development of One-north’s Alice @ Mediapolis by mergers between a sovereign wealth fund in Middle East and Boustead Projects received its 2018 TOP with half of its estimated 350,000 sq ft NLA.
Mr. Tay added that it could either be under negotiation or already been leased.