Financial institution UBS has fully pre-leased the office component of the 9 Penang Road project, Suntec REIT and its joint venture partners, Haiyi Holdings and SingHaiyi Group, said in a filing to SGX mid-day Wednesday.
UBS will occupy around 381,000 square feet, with occupation expected in the second half of 2020, the filing said.
Chong Kee Hiong, CEO of ARA Trust Management (Suntec), the REIT’s manager, said in the statement that UBS had been a longstanding tenant of Suntec REIT.
“With the office component leased to UBS, unitholders will enjoy revenue from the fully leased office space soon after [the temporary occupation permit] as compared to varied rental commencement by multi-tenancy leases. Its lease tenure will also provide stability of income stream with a potential for growth,” Chong added.
August Hatecke, country head of UBS Singapore, said his bank would bring together the employees working in One Raffles Quay and Suntec City to one location. UBS University, which will provide training and development programs for employees around the region, would also be at the new location, he said in the statement.
In a separate statement, Celine Tang, group managing director of SingHaiyi, added that 9 Penang Road was her company’s first foray into commercial property development, and the project was expected to act as a springboard to expand into the commercial and retail segments.
The development at 9 Penang Road, which is the site of the former Park mall, is due to be completed in the fourth quarter of this year, the filing said.
The site, located near the Orchard Road shopping belt, will have a ten-storey commercial building, with two office blocks and a retail component on the ground and second level, it said.
SingHaiyi Group and Haiyi Holdings each hold 35 percent of the joint venture, while Suntec holds the remaining 30 percent.
Haiyi Holdings is wholly owned by SingHaiyi’s major shareholders Celine Tang and Gordon Tang.