Stanchart Leases Changi Office At $206m

Source : The Straits Times, Feb 13, 2008

STANDARD Chartered Bank (Stanchart) has signed a $206 million deal to lease a customised building at Changi Business Park to house its backroom operations from 2010.

The deal, involving a 15-year lease, puts Stanchart’s total spending on relocation and consolidation projects over the next 10 to 12 years at over $1 billion.

The six-storey building will have 225,000 sq ft to house up to 2,000 backroom staff. As the bank’s business grows, it could add a second and third phase to increase its space there to 700,000 sq ft.

This move to an industrial location - after it leased 24 floors at the yet-to-be completed Marina Bay Financial Centre (MBFC) last April - is to accommodate the bank’s mid- to long-term expansion.

‘The two properties will accommodate a projected increase in headcount from about 4,700 to over 6,000 by 2010,’ said Stanchart chief executive Lim Cheng Teck.

These leasing deals allow the bank to lock in a significant chunk of future costs, giving it the opportunity to grow at a much faster pace, he said. ‘There will always be cyclical challenges. We are very bullish on Singapore, which is why we are investing ahead.’

When Stanchart moves to the new premises, it will vacate all its current office premises, except its 6 Battery Road location, where it has a 30-year lease of the 10th floor due to expire in 2020.

The MBFC premises will be Stanchart’s main business centre.

Mr Lim said the bank’s business has performed strongly on the back of robust economic growth in Singapore and the region.

‘We will build on the momentum to capture in-country and regional opportunities.’

The Changi Business Park building will be built by Ascendas. Stanchart will lease it for 15 years from late 2010, with a review every five years and an option to lease it for another 15 years.