Relocation To New Offices To Cost Stanchart $1b

Source : The Business Times, February 13, 2008

Marina Bay Financial Centre and Changi Business Park to house 6,000 by 2010

STANDARD Chartered Bank (SCB) occupies over 500,000 sq ft of office space spread over six buildings in Singapore, but come 2010, some of this will be vacated when it moves into new office space at Marina Bay Financial Centre (MBFC) and a build-to-suit building at Changi Business Park (CBP).

Together, these new premises will cost Standard Chartered over $1 billion to relocate and consolidate its offices with MBFC costing around $800 million and the CBP premises costing $206 million.

SCB chief executive Lim Cheng Teck added: ‘The group, which manages many of its global businesses out of Singapore, is also growing at a significant pace.’

The two properties will accommodate a projected increase in headcount from 4,700 currently to over 6,000 by 2010. Two years ago, its headcount was just 2,600.

Saying that SCB is ‘concerned about rising costs,’ Mr Lim added that the CBP office can accommodate up to 2,000 non-frontline staff, and will provide cost-effective, campus-style space for functions that need not be in the city.

A key feature is a 30,000 sq ft Global Learning Centre which will provide development programmes for staff.

The six-storey CBP building will be developed by Ascendas Land. SCB will be the anchor tenant and has committed to take up 225,000 sq ft of the space in Phase One of the development and will lease the space from Ascendas for 15 years with an option to extend the lease by a further 10 years.

It also has the option to expand its space by 700,000 sq ft in Phase Two and Three.

SCB is the latest financial institution to move backroom operations to CBP.

Mr Lim also revealed that plans to build a CBP campus were wrapped up within two months.

Ascendas president and CEO Chong Siak Ching added that SCB ‘adds to our growing base of customers who are looking beyond the city centre and considering business parks as viable options for their support operations.’

Ascendas also added: ‘We are working on getting more projects in CBP specifically, and elsewhere in Singapore as well.’

SCB currently occupies about 10 floors at 6 Battery Road. Apart from this, its primary offices are at Plaza By the Park on Bras Basah Road and CPF Tampines Building. It also has offices at OUB Centre, UOB Plaza and Odeon Towers.

While it does not expect to move out of 6 Battery Road, it plans to move out of the non-primary buildings in phases as leases expire.