Tag Archives: Capital Tower

CapitaLand pilots innovation at HQ to test-bed ‘office of the future’

CapitaLand has partnered with Singapore’s coworking space pioneer Collective Works to transform the 12th storey of Capital Tower – its headquarters – into a premium coworking space, as part of its pilot initiatives to test-bed alternative workspaces.

In what is a first for a Grade A office building and a landmark deal in the coworking sector, the joint initiative aims to shape the future of office buildings in Singapore and change the way office spaces are used.

“It is incumbent on CapitaLand to constantly assess opportunities that will allow us to stay ahead of the curve and seize first-mover advantages,” said CapitaLand president and group chief executive Lim Ming Yan in a statement.

Collective Works – Singapore’s first CBD-based coworking space – will manage the coworking space on behalf of the partnership.

The coworking concept, which began in the United States, has spread quickly across other gateway cities such as New York, London, Berlin and Paris, followed by South-east Asian countries such as Indonesia, Philippines, Malaysia, Thailand and Singapore. In Singapore, coworking is at a fairly nascent stage with a variety of business models, said CapitaLand.

The 50:50 joint venture, which will support up to 250 high performance businesses over 22,000 sq ft, has seen strong pre-registration, according to a statement issued by Collective Works.

Australian bumper haul for MBFC

Australian companies BHP Billiton and Macquarie Group have been confirmed as the newest tenants of Marina Bay Financial Centre (MBFC).

Mining firm BHP Billiton and banking giant Macquarie will take up 142,000 and 74,000 sq feet of space respectively in Tower 1 of the office building at downtown Marina, said Raffles Quay Asset Management, which manages MBFC, in a statement. Both firms will take 10-year leases.

Murex Southeast Asia, a software developer, will take up 25,000 sq ft on a six-year lease.

Together, the three will occupy more than 8 per cent of the 2.9 million sq feet of office space at MBFC, which is slated for completion by the second quarter of 2010.

The development is owned by Hongkong Land, Keppel Land and Cheung Kong Holdings.

With the the three tenants, 61 per cent of office space at MBFC is now pre-committed. Raffles Quay declined to reveal the rents for the three.

BHP Billiton’s lease at MBFC follows on news last week that it had renewed its tenancy at Capital Tower for two to three years. The company also has operations at Springleaf Tower. It could not confirm yesterday if the move was due to expansion or a consolidation of its existing operations.

Macquarie’s move to MBFC is motivated by its expansion and increase in its headcount.

The investment and financial services provider currently leases about 40,000 sq ft at Capital Square.

Mr Donald Han, managing director of Cushman and Wakefield, reckons rents for the newest tenants could fall between $14 and $15 per sq ft (psf), a discount to the $18 to $22 psf range for a lease in the same location currently.

“Whoever is willing to commit longer ahead of completion would typically be asking for a larger discount,” said Mr Han.

Source : Today – 11 Sep 2008