The Singapore Land Authority (SLA) has released another three state properties strictly for use as office space, bringing the total to six this year.

The Singapore Land Authority (SLA) has released another three state properties strictly for use as office space, bringing the total to six this year. So far, one site, a former school at River Valley Road, has received four bids with the highest tendered monthly rent at $75,555 a month.

Based on the the gross floor area of 47,253 sq ft for the River Valley site, the monthly rent works out to be about $1.60 psf.

SLA said the bids are still being evaluated. Nevertheless, ERC Holdings - an investment holdings company - which put in the highest bid said it was keen enough to pump in another $3 million to $5 million to upgrade the building.

Like many businesses today, ERC is facing a space crunch and needs the space urgently. Its CEO Andy Ong said that the company already occupies about 20,000 sq ft in the Central Business District (CBD) but needs 10,000-15,000 sq ft more.

Rising rents are also putting increasing pressure on business here. ‘Our current leases will expire and we are now looking at rental increases of about 300 per cent,’ he added.

Of the three new sites being offered for office use, SLA said one has already received expressions-of-interest from businesses such as financial institutions, real estate and software development companies. The site is the former CPIB Building on Cantonment Road, on the fringe of the CBD.

The popularity of these old state buildings will depend on the severity of the office space crunch. CB Richard Ellis executive director (office services) Moray Armstrong said: ‘The sites would apply to tenants who are not tied to prime locations and prime office buildings to the extent that companies are prepared to move out to these temporary sites. The space that these companies free up might then go some way to alleviate the tight office supply situation.’

The other two sites that SLA has made available for office space are the former ITE Pasir Panjang building and the former Moulmein Community Centre, the first community centre that could be converted into an office. SLA also revealed that it is evaluating the possibility of including another four community centres for this purpose.

Source: The Business Times, 03 May 2007