Singtel has unveiled plans to redevelop its landmark Comcentre headquarters in Singapore, investing in excess of S$2 billion to create a “smart building of the future”.
Plans are now underway to jointly redevelop the facility along the Orchard Road belt, with the move designed to incorporate new sustainable designs and digital technologies.
The telecommunications giant has been working out of the iconic building since 1979, billed at the time as the first skyscraper in Singapore to house microwave dishes on the rooftop to transmit signals across the city-state and its surrounding islands.
“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,” said Yuen Kuan Moon, CEO of Singtel Group.
“With the redevelopment of Comcentre, we aim to establish a new standard for the global office of the future by combining the latest technologies and sustainable workspaces to create pleasant, collaborative and connected environments for our employees and other building occupants, catering to the increasing adoption of hybrid work strategies.”
Expected to be completed at the end of 2028, the new Comcentre will see Singtel relocate from the facility in 2024 in preparation for the redevelopment with employees expected to shift to temporary spaces at other company premises across Singapore.
“Maximising the unique development potential of Comcentre will significantly enhance its value in a vicinity where grade A office developments are in short supply,” Yuen added.
“We strive to optimise the capital we can unlock from existing assets to fund our growth initiatives including 5G and the regional expansion of our data centre business. We will continue to seek out opportunities to crystallise value from our extensive portfolio of assets.”
As the anchor tenant of the new development, Singtel will occupy around 30 per cent of the space with the remaining area set to be leased out to tenants. According to Yuen, this will contribute a "recurring income stream" for the business in the long-term.
The total cost of development, including land costs, is estimated to be in excess of S$2 billion. As part of its capital recycling strategy, Singtel will also divest Comcentre to a joint venture company formed with the appointed developer and hold a majority stake in this joint venture.
“The new Comcentre will cater to our evolving business needs and showcase the digital workplace of the future featuring 5G solutions,” Yuen stated.
“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.”