It's All About Accessibility

Source : The Business Times, November 1, 2007

CLARISSA TAN looks at why Standard Chartered has picked the upcoming Marina Bay Financial Centre to centralise its operations

WHEN it comes to choosing a location, banks say they look for one thing above all - accessibility.

Prime location: Marina Bay Financial Centre, the $2 billion waterfront development, will have its office blocks interspersed with retail, dining and landscaped public spaces

Proximity to train and bus stations, food outlets, shops and entertainment would help make their premises more efficient for customers and attractive to employees, they say.

Such factors were taken into account by Standard Chartered Bank, which will be making a massive move to the Marina Bay Financial Centre when the project's first phase is completed in 2010.

'It's about accessibility,' said Lim Cheng Teck, the bank's chief executive officer in Singapore. 'There is proximity to public transport, restaurants and food centres. It also fulfils today's lifestyle requirements, such as cycling to work or going to the gym.'

Standard Chartered has taken a 12-year lease on 24 of the 32 floors of Tower One in the financial centre.

The $2 billion waterfront development will have its office blocks interspersed with retail, dining and landscaped public spaces. The project will be connected to Singapore's Mass Rapid Transit system and will also be near the Esplanade arts centre and the planned Integrated Resort and Central Park.

Mateos Atamyan, a managing director at Bank Julius Baer, said that generally, the top criteria for banks when they choose a location are 'accessibility to mass transport, such as the MRT in Singapore, and the capability to satisfy all our technical requirements'.

Proximity to facilities: Julius Baer's Mr Atamyan (left) says the top criteria for banks when they choose a location are 'accessibility to mass transport, such as the MRT in Singapore, and the capability to satisfy all our technical requirements'. Standard Chartered's Mr Lim says the large tenancy in Tower One will help boost the bank's visibility and branding.

'Food and beverage outlets, a high-end restaurant, retail shops, conference facilities and sufficient parking lots for visitors are all important,' Mr Atamyan, who is also a member of the Singapore and Asian management committees at Julius Baer, added.

'I also think long-term rental packages should be made available other than the typical three-year rental contracts.'

The Marina Bay Financial Centre will consist of three towers in its first phase - two office towers of 32 and 50 storeys, and an apartment block, Marina Bay Residences.

Tower One was fully leased by August this year, three years ahead of its scheduled completion. Besides Standard Chartered, its tenants will include French investment bank Natixis and American investment adviser Wellington International Management Company.

The development, touted as Asia's version of Canary Wharf in London, is a joint venture between Cheung Kong Holdings, Hongkong Land and Keppel Land. It aims to provide what it calls an integrated 'live-work-play' environment.

Standard Chartered says the new location will also help the bank as its workforce expands.

The bank, which has Singapore as its global headquarters for private banking, has seen its staff numbers double to 4,600 in the past two years, Mr Lim said.

'We expect 6,000 or more staff by the time the new office opens,' he said. 'The way we see it, Singapore is a centre, and as our global business grows, we will also see a growth in headcount.'

Standard Chartered also manages its global consumer banking businesses out of Singapore and its international head for technology and operations is based here.

The financial centre and its live-work-play concept may even help attract potential employees, he said.

'If I were given a choice between an office location that has all the facilities and one that has not, I would definitely go for the former,' he said.

Standard Chartered's prominent new location - the Marina Bay Financial Centre is in the heart of the new downtown - will be apt for a bank that derives about three-quarters of its income from Asia, Mr Lim said. While Standard Chartered is London-based, 90 per cent of its profits come from Asia, Africa and the Middle East.

'Housing all our operations in one building will also improve efficiency,' said Mr Lim. 'Operationally, we are currently not as efficient as we'd like' as Standard Chartered has several locations across Singapore, he added.

He said the centralisation in Marina Bay would create greater efficiency in everything from the use of computer servers to holding office meetings.

Standard Chartered's principal office in Singapore is at 6 Battery Road, but it currently also has key operations in Plaza By The Park, CPF Tampines, UOB Building and OUB Centre.

The large tenancy in Tower One will also help boost the bank's visibility and branding, said Mr Lim. The premises will overlook the bay and other future landmarks such as the Singapore Flyer.

'We will have an unobstructed view facing the ECP and other things such as the Integrated Resort - we will get visibility,' said Mr Lim.

Commenting on what makes a world-class financial centre, Julius Baer's Mr Atamyan said that besides the actual office space, service is key.

'It is not just the hardware or physical building that matters,' he said. 'Image-building is crucial and good services can also make a difference, such as giving anchor tenants direct access to their floors, and good maintenance and fast response time by building management.'

The choice of a bank's location depends on the nature of its use such as whether it is meant for the bank's headquarters, backroom operations or branches, said Koh Ching Ching, head of group corporate communications of Singapore-based OCBC Bank.

'It is also dependent on the types of services to be rendered and the segment of customers served,' she said. 'For example, when we review the locations for our branches, we take into consideration accessibility, customers' needs, customer convenience to ensure that we provide convenient services to meet our customers' needs islandwide.'

David Martin, the general manager of the Marina Bay Financial Centre, said the project will add around 150,000 square metres to existing premium office space in Singapore.

Combined with the 120,000 square metres at the adjacent One Raffles Quay, also by the same joint venture, that would double the supply of top-tier office space in the central business district, he said.