CapitaGreen secures pre-commitment for about 12% of total NLA
Global brand names from banking, commodities and services sectors make the CBD’s next landmark their new address in Singapore
Singapore, 15 April 2014– CapitaLand, CapitaCommercial Trust and Mitsubishi Estate Asia, the joint venture partners for the development of CapitaGreen are pleased to announce that approximately 81,000 square feet or about 12% of the building’s net lettable area (NLA) of 700,000 square feet has been pre-committed to three tenants. CapitaGreen is the newest 40- storey Grade A office building in Singapore’s Central Business District (CBD), conveniently located at 138 Market Street with easy access to Raffles Place and Telok Ayer MRT stations. When completed by end 2014, CapitaGreen will be the only new Grade A office building in the CBD this year, as well as one of its greenest buildings.
The three tenants are from the banking, insurance and financial services; commodities and services sectors. Cargill, one of America’s largest privately-held companies with almost 150 years in the commodities industry has signed 51,000 square feet of NLA. Leasing over 12,000 square feet is Bordier & Cie (Singapore) Ltd, the fully independent subsidiary of Bordier & Cie, a Swiss private bank that was founded in 1844. Taking 18,000 square feet is a leading international gym operator which plans to launch a new club and lifestyle concept at CapitaGreen.
Mr Wen Khai Meng, Chief Executive Officer of CapitaLand Singapore said, “The construction of CapitaGreen is progressing well and is on track to be completed by end 2014. CapitaGreen offers truly column-free and efficient floor plates and a double-skin façade which reduces the building’s solar heat gain. Premium, ultra-modern office space is further complemented by lush greenery in the sky terraces at selected floors and in the expansive roof-top sky garden, as well as unique art works by internationally renowned artists that will be tastefully integrated with the building design.
Given CapitaLand’s established track record in sustainability and safety, tenants and visitors alike can look forward to a quality, safe and conducive environment at CapitaGreen to work and do business in.”
Ms Lynette Leong, Chief Executive Officer of CapitaCommercial Trust Management Limited said, “We are pleased to welcome our first three tenants to CapitaGreen. They are established global leaders in their respective fields and we are honoured by their endorsement of CapitaGreen as their new business address in Singapore. Going by the performance of the Grade A office market in the past six months, it is certainly living up to the expectations of a strong rental recovery in 2014. Given the office market’s limited new supply this year and new supply void next year, CapitaGreen’s year-end completion is well positioned to ride on the momentum generated by this first round of pre-commitments to attract more quality tenants. We are in discussions with other prospects and are optimistic to progressively achieve 50% pre-commitment1 by the end of this year.”
According to CBRE data, the office market performed well in 1Q 2014. The island-wide net absorption for 1Q 2014 was 412,000 square feet with much of the leasing activity focused on the CBD Core, where average occupancy increased from 95.2% to 95.7%. Most noticeably, the Grade A office segment continued its strong performance with occupancy rising by 1.1% to 94.8%. The first signs of rental recovery in late 2013 have gained momentum in 1Q 2014. The average Grade A office rent grew by 5.1% during the quarter to reach $10.25 per square foot per month at end March 2014.