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Singtel will be redeveloping its Comcentre headquarters on Orchard Road for over $2 billion (Photo: Singtel)
SINGAPORE (EDGEPROP) - Singtel has announced plans to appoint a developer to jointly redevelop its Comcentre headquarters along the Orchard Road belt.
The redevelopment will maximise the Comcentre site’s potential and increase building efficiency with a view to unlock value from the property, the company says in a Feb 23 press statement.
The new Comcentre is expected to have a total gross floor area of over 110,000 sq m (1.18 million sq ft) comprising Grade-A office buildings, a retail component and Singtel’s existing Orchard Exchange, which houses telecom infrastructure.
The new development will house Singtel’s headquarters. The company will take up around 30% of the space, while the remaining space will be leased out to tenants.
The new development will cater for a future underground connection to Somerset MRT. Singtel has also obtained in-principle approval from the Singapore Land Authority to extend the lease on all the lots that make up Comcentre to 2089.
The total cost of development, including land costs, is estimated to be in excess of $2 billion. Singtel says it will divest Comcentre to a joint venture company formed with the appointed developer and hold a majority stake in this joint venture.
Two developers have been shortlisted in the first phase of the tender based on the quality of their design concept, asset valuation and track record. The tender process will close in March and Singtel expects to make the final appointment by May.
Comcentre, which has been Singtel's headquarters since 1979, is built on a site area of 19,252.6 sq m (207,233 sq ft). It was the first skyscraper in Singapore to house microwave dishes on the rooftop to transmit signals across Singapore and its surrounding islands.
"We’ve had the privilege of working out of the iconic Comcentre building in the Orchard Road belt since 1979. We’re truly excited to be working with the authorities to rejuvenate the Orchard Road precinct to prepare for the post-pandemic world and reinvigorate our future workplaces,” says Singtel Group CEO Yuen Kuan Moon.
The office buildings in the new development will feature workspaces that are more open and digital to promote a collaborative and inclusive environment while prioritising employee health, safety and wellness.
"The new Comcentre will cater to our evolving business needs and showcase the digital workplace of the future featuring 5G solutions. This reimagined Comcentre is the latest exciting step in Singtel's transformation since we started our strategic reset last year. We aim to create an environment that stimulates greater innovation, collaboration and engagement, inspiring our people to do their best work and serve our communities,” Yuen adds.
The new Comcentre is expected to be completed at the end of 2028. Singtel will relocate from Comcentre in 2024 in preparation for the redevelopment and employees will shift to temporary spaces at other Singtel premises across the island.
The company has adopted a hybrid work model since the start of this year, allowing employees to work up to two days a week remotely.