Take-up for space in S’pore’s tallest building at a ‘healthy’ level

SINGAPORE — About six months ahead of its completion as the tallest building in Singapore, the S$3.2 billion Tanjong Pagar Centre development has secured tenants for about 10 per cent of its office space, a “healthy” rate amid the less exuberant office leasing market today.

Tenants that have committed to taking up space in the 290m-tall development include Norwegian financial group DNB Asia, Malaysian lender Hong Leong Bank and global workspace provider Regus. Talks are also ongoing with several firms to take up another 40 per cent of office space.

“We acknowledge that the office leasing market is not as exuberant as a few years ago … but at the same time, it’s not a dead market, there’s still ­activity, there are still people who need to move,” said Mr Cheng Hsing Yao, managing director of GuocoLand Singapore, the developer of Tanjong Pagar Centre.

Mr Cheng added that the need to move stems from companies wanting to upgrade their office, reconfiguring their use of space to be more efficient, expansion or even downsizing. He was speaking to reporters after the development’s topping-out ceremony today (Jan 13), which was attended by Minister for National Development Lawrence Wong.

Mr Christopher Fossick, Singapore and South-east Asia managing director for JLL, which is marketing the centre’s retail and office components, said a 10 per cent take-up rate is “healthy” and this would typically pick up closer to completion date.

“The commitments to date are in line with what typically we see at this stage of the development … Most ­office demand still comes from existing companies in Singapore, because new ­entrants usually start small,” he said.

Mr Fossick also observed that the days of having one dominant industry taking up office space in the Central Business District are over, and tenants these days come from a variety of sectors, such as finance, technology, law, and energy and chemicals.

Tanjong Pagar Centre is due for completion in the middle of this year. The mixed development will open its doors in phases in the second half of the year. Besides 890,000sqf of offices, the building will also house 100,000sqf of retail space. Sixty per cent of retail space has been leased and Virgin ­Active has come onboard as the ­anchor tenant.

The development also has a hotel, Sofitel Singapore City Centre, which is expected to open in the third quarter. A 181-unit luxury residences component, which has been renamed Wallich Residence, has sold 16 units, said Mr Cheng.

GuocoLand also hopes the development will help rejuvenate and turn Tanjong Pagar District “into a business and lifestyle hub in the Central Business District”, said president and CEO Raymond Choong.