Singtel to redevelop Comcentre headquarters into next-gen office development

Singtel announced plans to appoint a developer to jointly redevelop its landmark Comcentre headquarters along the Orchard Road belt. Envisioned as a smart building of the future incorporating the latest sustainable designs and digital technologies, the next generation office development will house Singtel’s modern new headquarters besides offering progressive and optimised hybrid workplaces to other tenants.

The redevelopment will maximise the Comcentre site’s potential and increase building efficiency with a view to unlocking value from the property. The total cost of development, including land costs, is estimated to be in excess of S$2 billion. As part of its capital recycling strategy, Singtel will divest Comcentre to a joint venture company formed with the appointed developer and hold a majority stake in this joint venture.

Singtel Group CEO Mr Yuen Kuan Moon said, “We’ve had the privilege of working out of the iconic Comcentre building in the Orchard Road belt since 1979. We’re truly excited to be working with the authorities to rejuvenate the Orchard Road precinct to prepare for the post-pandemic world and reinvigorate our future workplaces. With the redevelopment of Comcentre, we aim to establish a new standard for the global office of the future by combining the latest technologies and sustainable workspaces to create pleasant, collaborative and connected environments for our employees and other building occupants, catering to the increasing adoption of hybrid work strategies.”

“Maximising the unique development potential of Comcentre will significantly enhance its value in a vicinity where Grade A office developments are in short supply. We strive to optimise the capital we can unlock from existing assets to fund our growth initiatives including 5G and the regional expansion of our data centre business. We will continue to seek out opportunities to crystallise value from our extensive portfolio of assets.”

He added, “Maximising the unique development potential of Comcentre will significantly enhance its value in a vicinity where Grade A office developments are in short supply. We strive to optimise the capital we can unlock from existing assets to fund our growth initiatives including 5G and the regional expansion of our data centre business. We will continue to seek out opportunities to crystallise value from our extensive portfolio of assets.”

As the anchor tenant of the new development, Singtel will occupy around 30% of the space. The remaining space will be leased out to tenants looking for modern offices in the heart of Orchard Road. This will contribute a recurring income stream for the Group in the long term.

Developers shortlisted
Two developers have been shortlisted in the first phase of the tender based on the quality of their design concept, asset valuation and track record. The tender process will close in March and Singtel expects to make the final appointment by May.

Comcentre, which has been Singtel’s headquarters since 1979, is built on a site area of 19,252.6 square metres. It was the first skyscraper in Singapore to house microwave dishes on the rooftop to transmit signals across Singapore and its surrounding islands.

The new Comcentre is expected to have a total gross floor area of over 110,000 square metres comprising Grade A office buildings, a retail component and Singtel’s existing Orchard Exchange, which houses critical telecom infrastructure. It is planned to be well integrated with the surrounding neighbourhood and will cater for a future underground connection to Somerset MRT. Singtel has also obtained in-principle approval from the Singapore Land Authority to extend the lease on all the lots that make up Comcentre to 2089.

The office buildings will feature workspaces that are more open and digital to promote a collaborative and inclusive environment while prioritising employee health, safety and wellness. Singtel has adopted a hybrid work model since the start of this year, providing flexibility for employees to work up to two days a week remotely, supporting improved work-life balance. Mr Yuen added, “The new Comcentre will cater to our evolving business needs and showcase the digital workplace of the future featuring 5G solutions. This reimagined Comcentre is the latest exciting step in Singtel’s transformation since we started our strategic reset last year. We aim to create an environment that stimulates greater innovation, collaboration and engagement, inspiring our people to do their best work and serve our communities. This will be a magnet for talent who want to co-create and collaborate in an innovative environment. The redevelopment of our headquarters also supports our vision to build a greener and sustainable future and will further facilitate our efforts to reach net zero for our own operations.”

Expected to be completed at the end of 2028, the new Comcentre will enliven the vicinity with retail and F&B offerings and complement the larger rejuvenation plans that the government has for Orchard Road including the Skate Park and SCAPE in the Somerset area.

Singtel will relocate from Comcentre in 2024 in preparation for the redevelopment and employees will shift to temporary spaces at other Singtel premises across the island.

CT Bureau