Healthy leasing at SEB’s Ubi property

Source : Business Times - 20 Jan 2009

A HI-TECH development at 67 Ubi Avenue 1 has been 63 per cent leased less than two months after receiving its temporary occupation permit (TOP).

The property, owned by SEB Asset Management and marketed by Colliers International and CB Richard Ellis, has a net lettable area of about 400,000 square feet.

An anchor tenant, understood to be in the infocomm industry, has taken up 55 per cent of the net lettable area. Also, Boustead is taking up about 30,000 sq ft under a sale-and-leaseback arrangement with the park’s German owner SEB.

Boustead, through associate company GBI Realty, developed and later sold the property to SEB in June 2008 for $200 million.

The development comprises one six-storey block and one seven-storey block with units ranging from about 2,000 sq ft to 140,000 sq ft.

Tan Boon Leong, director of industrial at Colliers, said: ‘Zoned for Business 1 use, the units are suited for businesses in the IT and electronics sectors, backroom operations, and display and service centres among others.’

The asking rent is $3.80 per sq ft per month. Existing rents in hi-tech buildings are understood to be $4 to $4.50 psf per month.

Moray Armstrong, executive director of office services at CB Richard Ellis, said: ‘We have seen many leases in hi-tech and business park buildings, as occupiers get quality space at competitive rents. Notably, 46 per cent of the next three years’ total supply at business parks is pre-let.’

The Ubi Ave park is SEB’s first industrial property acquisition in Singapore. It has made several office acquisitions: a 55 per cent stake in the freehold 79 Anson Rd, 12 floors of Springleaf Tower in Anson Rd, and SIA Building in Robinson Rd.