CDL Sees Healthy Occupancy

CDL Sees Healthy Occupancy For Its Singapore Office Assets

SINGAPORE – City Developments Limited’s (CDL) Singapore office portfolio saw a solid committed occupancy of 93 percent as of the end of the first quarter of the year, with its flagship Grade A office building in Raffles Place, Republic Plaza, 95 percent leased and recording positive office rental reversion, according to its latest business update that was recently published on the local bourse.

Notably, CDL’s Singapore office occupancy exceeded the city-state’s average office occupancy level of 88 percent in Q1 2022.

“With the relaxation of safe management measures since 29 March 2022, there is a gradual increase in occupiers returning to the workplace, bringing vibrancy to the office community. With the reopening and tight office supply in 2022 and 2023, the group is cautiously optimistic on the office market recovery,” it stated in its latest operational update.

The Singapore-listed real estate developer also announced that it had completed the S$315 million purchase of Central Square here in March 2022.

The commercial property will be redeveloped alongside the group’s Central Mall properties into an enlarged mixed-use project consisting of office space, retail premises, hospitality, and residential units. Via the Urban Redevelopment Authority’s (URA) Strategic Development Incentive Scheme, the redevelopment could potentially yield a huge increase in gross floor area (GFA).

Meanwhile, CDL revealed that its two London office buildings are witnessing improved leasing activity.

“Aldgate House and 125 Old Broad Street continued to benefit from businesses gravitating to well-located Grade A offices. This is reflected in the increase in recent lettings and longer-term commitments from existing occupiers for both buildings, with some companies also increasing their space requirements.”

In Shanghai, the occupancy of CDL office assets remains “relatively stable,” with the committed occupancy of the office space and retail premises at Hong Leong Hongqiao Center maintained at 93 percent, despite a city-wide lockdown that caused a drop in business activity during the first three months of the year.

“However, the group faces increasing pressure to provide financial support as preventive and control measures continue. Retail has been severely impacted in Suzhou as only essential services and takeaways are allowed,” added CDL.

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