Guoco Midtown Reaches 85% Occupancy Rate
SINGAPORE – The developer of Guoco Midtown revealed that the mixed-use commercial property’s brand-new Grade A office building has generated income and the overall development has hit an occupancy rate of 85 percent, including pre-commitments, according to filings with the Singapore Exchange (SGX) that were published on Tuesday evening (29 August, SGT).
“There is the initial contribution from Guoco Midtown’s new 30-storey premium office tower, which obtained Temporary Occupation Permit (TOP) in January 2023,” stated GuocoLand Limited in its latest bourse filing.
“At 85 percent pre-commitment take-up, Guoco Midtown is still undergoing asset stabilisation, with office tenants progressively moving in. As it becomes fully operational, revenue from the group’s investment properties is expected to grow steadily in the coming years.”
GuocoLand revealed that revenue from its investment properties surged 43 percent year-on-year to S$94.8 million during the 2nd half of its financial year ended 30 June 2023 (FY2023). For the whole of FY2023, revenue from investment properties increased 35 percent to S$169.6 on an annual basis.
With Singapore developments as the key drivers of growth, the group registered an overall revenue of S$1.54 billion for FY2023, a 60 percent jump from the preceding fiscal year that ended on 30 June 2022. For H2 FY2023, GuocoLand’s revenue rose sharply by 72 percent to S$$882.9 million on a year-on-year basis.
The group disclosed that the growth is supported by higher recurring rental income from Guoco Tower in Singapore, Guoco Changfeng City South Tower in Shanghai and the initial contribution from Guoco Midtown Office, which started operations in H2 FY2023.
“The group’s property investment segment continues to contribute stable recurring income and
record further capital appreciation for its resilient portfolio of high-quality investment properties
such as Guoco Tower and Guoco Midtown, notwithstanding increased market headwinds including heightened business uncertainty and higher interest rates and finance costs,” added the Singapore-based developer and office landlord.