May 8, 2008
STAYING PUT TILL 2019
HSBC extends lease of HQ for $143m
HSBC Bank is extending the lease of its headquarters at Collyer Quay for another seven years after it expires in April 2012.
It will pay $143.1 million to rent HSBC Building until April 2019, said the building's owner, CapitaCommercial Trust (CCT), yesterday.
CCT will spend up to $7 million on improvement works at HSBC Building. These are expected to start late this year, subject to approval.
CCT said in a statement that the forward renewal of this lease agreement 'will ensure that HSBC continues to be one of CCT's core blue chip tenants and provides long-term sustainable and stable income to CCT'.
The deal will 'also ensure that HSBC Building will continue to enjoy 100 per cent occupancy over the long term', in light of the fact that more office space will come onto the market after 2010.
About 1.11 million sq m of office space is expected to be completed between 2010 and 2012, according to the Urban Redevelopment Authority. Until then, the shortage of office space is likely to remain.
HSBC subsidiary, HSBC Institutional Trust Services, is a trustee of CCT and is considered an 'interested person' in this transaction, CCT said in its statement.
It also said property firm CB Richard Ellis has reviewed the lease agreement as an independent valuer and has confirmed that the rent is at market level.
FIONA CHAN
Copyright © 2007 Singapore Press Holdings. All rights reserved. Privacy Statement & Condition of Access
EastLiving.com.sg
Contact Stuart Chng: (65) 9691 9907
Email: stuart.chng@eastliving.com.sg
EastLiving - Singapore Property and Real Estate DB
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment