Co-working space provider WeWork entered an agreement to lease all of the 21 Collyer Quay property from CapitaLand Commercial Trust for seven years, starting from the second quarter of 2021, the trust said in a filing to SGX Wednesday.
21 Collyer Quay is currently leased to HSBC for one year, with the agreement set to expire in April 2020, the filing said.
“The manager plans to capitalise on the transitional occupancy downtime during changeover of tenants to upgrade the building,” the trust said. “The expected return on investment is approximately 9 percent on an estimated cost of S$45 million to upgrade the property.”
The upgrade will include improvements to essential equipment, common and lettable areas and upgrades to achieve a Green Mark Gold Plus rating, CCT said.
The building is 21 storeys with a net lettable area of around 200,000 square feet, the filing said.
It will become WeWork’s largest location in Singapore.
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