Life insurance firm Prudential is expected to save S$1.2 million a year in rent for the next 15 years when it moves into a transitional office site at Scotts Road.
The site, which is slated to be ready in September, will house 2,500 staff. The target to construct the S$35 million, four-storey building by September is a challenging one given the resource crunch in the construction sector.
Developer Scotts Spazio said it has been designed in a modular format to speed things up.
Ong Chih Ching, managing director, KOP Capital, said: "Our project managers are putting together a package where instead of having one main contractor, they have split the packages up and they, themselves, become the main contractor supervising the work."
As its leases at Bugis Junction and Fuji Xerox building at Tanjong Pagar expire this year, sole tenant Prudential will take up all 150,000 square feet of the space at S$6.50 per square foot.
Philip Seah, CEO of Prudential Assurance Company Singapore, said: "At this point in time, we occupy about 200,000 square feet. By the time the rentals are due for the properties in town, we could be looking at rental of approximately S$10 to S$11, which is being cited to us, as opposed to S$6.50. In terms of the location and proximity to town, this will be a better location."
Located right above Newton MRT station, the one-hectare site is considered one of the best transitional office sites to be released so far and both the developer and main tenant are already hoping that the URA will extend its lease beyond 15 years.
- CNA/so
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