Servcorp Expands In S'pore As Office Market Booms

Source : The Business Times, September 20, 2007

All in a day's work: Servcorp's office packages offer a dedicated receptionist and access to meeting rooms

OFFICE space provider Servcorp is looking to expand in Singapore to take advantage of the booming office market here.

Last year, the Australia-based company grew the office space in its Singapore portfolio by 35 per cent with the opening of a new location in Prudential Tower and the addition of another level in Suntec Tower Three.

And now, it is looking to add another five Servcorp floors over the next three to five years.

Servcorp, which celebrated its 20th year in Singapore yesterday, leases office space in bulk from landlords, then re-leases the space to companies and provides office support - providing what it calls a 'serviced office network'.

It also offers 'virtual office packages', where a client can take advantage of a prestigious address, get a dedicated receptionist who answers calls in a company's name and gain access to boardrooms and meeting rooms.

The group has about 64,000 sq ft of space under lease in Singapore - out of more than 800,000 sq ft worldwide.

But to ride the booming office market here, it wants to grow its portfolio.

'Demand has certainly increased and we are seeing companies being much more bullish about their entry to the Singapore and Asian markets,' said Alf Moufarrige, Servcorp's chief executive. 'Instead of setting up with only one or two people, they are starting with six or more people - which, of course, increases the demand for space.'

Enquiries for space have climbed by about 30 per cent in the past year, he said.

Due to the strong demand, the rents charged by Servcorp have also gone up, in line with the rent the company has to pay to its own landlords.

'The commercial space market is definitely booming in Singapore!' said Mr Moufarrige. 'When I arrived in Singapore in early 2005, the asking rental for traditional space in Six Battery Road was $5.50 per square foot (psf). This is now at record levels of $18.50 psf.'

But there is still room for expansion, the company feels, as there are many office developments that are slated to come up over the next three to five years.