Singapore’s Central Boulevard To Generate About S$150mil In Rent

SINGAPORE – RHB Research estimated that The Central Boulevard, a mixed-use project in Singapore with office space, would generate between S$112.64 million and S$144.82 million in rent for its owner, Malaysia’s IOI Properties Group, reported The Edge on Tuesday afternoon (22 March, SGT).

The estimate is based on a conservative rental rate of S$10 psf to S$11 psf, according to a research note that was recently published by RHB Research.

In its report, the research house said it is upbeat on the rental prospects of The Central Boulevard, which is anticipated to be completed in 2023, considering that it comes with high-quality office space, which is in demand amidst the expansion of regional tech and telecommunication companies over the past few years.

Notably, the commercial property consists of a 16-storey East Tower and 48-storey West Tower, both of which are located on top of a 7-storey retail podium. In particular, it comes with 1.26 million sq ft of Grade A office space and 30,000 sq ft of retail space.

On top of that, The Central Boulevard is connected to 3 existing MRT stations, namely Downtown, Marina Bay, and Raffles Place, as well as the Shenton Way MRT Station, which is expected to be ready this year.

The management of IOI Properties Group also revealed that the initial response for leasing appears pretty promising.

“This should form a good earnings base for the company to raise its dividend payout in the future,” said analysts from RHB Research.

However, IOI Properties has failed to record a sustainable unit price recovery similar to its peers, despite the real estate company’s stable earnings growth, they said.

“The company is also a beneficiary of the reopening of the economy as earnings from its property development and property investment should normalise back to pre-pandemic levels,” added RHB Research.