Two more tenants for Mapletree Business City

Business Times: Thu, Nov 17
(SINGAPORE) Mapletree Business City (MBC) at Pasir Panjang Road is said to have bagged two more tenants for its business park towers. Toshiba will be taking nearly 52,000 square feet and Samsung Asia, 80,000 sq ft. This means that MBC’s total net l…

(SINGAPORE) Mapletree Business City (MBC) at Pasir Panjang Road is said to have bagged two more tenants for its business park towers. Toshiba will be taking nearly 52,000 square feet and Samsung Asia, 80,000 sq ft.

This means that MBC’s total net lettable area of about 1.73 million sq ft is about 90 per cent let. The development was completed in April 2010.

Samsung Asia is expected to lease the top two floors of the 17-storey Block 30 at MBC. It will move out of 50,000 sq ft of leased premises at Samsung Hub on Church Street.

Toshiba’s move to MBC will be a consolidation out of two existing locations – Alexandra Technopark and Gateway, say industry sources. At MBC, it will occupy one and a half floors in Block 20 West. Colliers International is understood to have brokered the Samsung leasing deal and CBRE the Toshiba deal.

Jones Lang LaSalle’s head of markets, Chris Archibold, notes that the majority of large leasing deals this year have been outside the CBD as occupiers have become more cost-sensitive given the current economic climate.

Occupiers looking for a single floor at MBC, for instance, can expect to pay an effective gross monthly rental of around $6-plus per square foot – compared with $11-13 psf for a new office development in the Raffles Place/Marina Bay area.

‘So far this year, there’s been only one deal of at least 100,000 sq ft in the CBD – Marsh & McLennan at Asia Square Tower 1. The other five deals of this size were outside the CBD – Credit Suisse at Changi Business Park, Deutsche Bank and Nike each at MBC, Ministry of National Development (and two of its statutory boards) at Jurong Gateway and DNV at Science Park 1,’ said Mr Archibold. JLL has brokered the majority of the large deals so far this year.

In contrast, last year saw 10 office leasing deals of at least 100,000 sq ft in the CBD. ‘But that was an exceptional year and driven by new supply – such as Asia Square, OUE Bayfront, Marina Bay Financial Centre and Ocean Financial Centre. Between 2000 and 2011, there were a total of 23 office leasing deals of 100,000 sq ft or more in the CBD, and of these, all but one involved tenants moving to new buildings,’ added Mr Archibold.

MBC comprises an 18-storey office block which is fully leased, and three business park towers, of which two (20 East and 20 West) are connected at the upper levels. 20 East is fully leased to HSBC and Unilever.

As for 20 West, following the lease signed with Toshiba, only one floor (33,000 sq ft) is available. Novartis, American Express, Ricoh and Credit Agricole are some of the other tenants in the block.

Block 30, where Samsung is headed, is left with three floors or 120,000 sq ft. SAP, Nike and Deutsche Bank are among the other tenants in the tower.

MBC’s owner, Mapletree Investments, is said to be looking at plans to redevelop MBC’s second phase on the adjacent land currently occupied by The Comtech.

The Comtech and MBC are on an over one million sq ft site which has a single title and which formerly housed Alexandra Distripark, comprising five blocks. In 2003, Mapletree upgraded two blocks to The Comtech, which houses data centres of banks and technology companies, and later tore down the other three blocks and redeveloped that portion of the site into MBC.
Source: Business Times © Singapore Press Holdings Ltd

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