CITIGROUP is paying $220 million to lease two new custom-built buildings in Changi Business Park, that will eventually house up to 4,000 operational and backroom staff.
The global financial services group, which aims to grow here, said the new premises will help consolidate its operations at a site well away from soaring prime office rents. -- PHOTO: CITIGROUP
The global financial services group, which aims to grow here, said the new premises will help consolidate its operations at a site well away from soaring prime office rents.
'Singapore continues to migrate into a unique position for Citi's global businesses,' said Citigroup's head of Asean, markets and banking, and country officer for Singapore, Mr Piyush Gupta.
'We want to be a global financial centre but costs are getting out of whack, particularly not just people costs, but premises' costs.'
Some prime office rents have nearly tripled in the past three years.
Property consultants say there is increasing resistance to the rapid rent rises, with some firms either holding off expansion plans or moving to cheaper spots.
'For a big company like us, to continue scaling out in the centre of the city at $15 per sq ft doesn't make sense,' said Mr Gupta.
He did not disclose the rental rate psf at the new premises.
About 1,100 of Citi's staff will move into the new premises, in an industrial area near the Singapore Expo, when the first phase is ready. Another 2,000 staff are expected in the second phase.
Ascendas Real Estate Investment Trust is developing the buildings starting this month. The first phase is set to be ready in the first quarter of 2009 and the second in late 2010.
The Changi premises will house its global software innovation team, two of its regional processing centres for securities, banking and transaction services and its regional technology infrastruture support.
Citi's investment of about $220 million comprises the capital, relocation, rental and operating costs. It will lease the buildings until 2016 and has an option to extend its lease for another six years.
Mr Gupta said Citi hopes to create a fun, eco-friendly, campus-like workplace at Changi, with features such as exercise rooms.
'Given today's war for talent, an important part of keeping employees engaged is the work environment,' he said.
The group, which currently occupies one million sq ft of space here, is spread out in six spots, including prime space in Capital Square and Centennial Tower, as well as two Tampines locations.
Citi's space take-up rises to 1.2 million sq ft when they fill the new space and vacate their Tampines premises.
It will be looking at new hires as it expands, but Mr Gupta did say how many. It employs more than 8,500 people here, up from 7,500 two years ago.
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