Among the plans, OUE will be developing a five-storey retail mall at the existing DBS Building at Shenton Way, according to a source close to the matter.

Built in 1975, DBS Building at Shenton Way will soon be home to a new shopping mall, spanning some 170,000 square feet.

According to a source familiar with the plans, OUE is expected to spend over S$100 million to build the new mall.

It is slated to open in mid-2014, and the mall will offer retail and F&B options as well as a supermarket.

Analysts said a retail development will support an increasing residential population in the downtown area.

Donald Han, special advisor, HSR, said: “On the size of 170,000 (square feet) you would probably expect rents on average of about S$13 – 16 per square foot. Because this is still a new market place, it certainly has more upturn, upside in the next two to three years especially when most of the residential and hotel components are fully in place.”

OUE acquired DBS Building in 2010 for about S$871 million. The podium level will be converted to a shopping mall, but it appears that the developer is keeping the two office towers and it is currently looking for tenants.

Existing anchor tenant DBS Bank is expected to move out of both office towers by year-end.

And it is likely that OUE could see some rental upside when it leases the office space to new tenants.

Apart from the developments along Shenton Way, Channel NewsAsia understands that OUE will also refurbish the shopping mall at One Raffles Place.

Renovation work could start at the end of the year and it is expected to cost over S$40 million.

Source : Channel NewsAsia – 30 Jul 2012

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DBS Towers, with a 99-year lease, is located at Shenton Way in the heart of the central business district.

DBS Tower One was built in 1975 and was then the tallest building in Singapore and the first to incorporate a covered walkway around the entire city block.

Together with DBS Tower Two, the 37-storey skyscraper comprises a total gross floor area of around 1.2 million square feet and a total net lettable area of some 883,000 square feet.

Both towers are currently fully leased out. Major tenants include financial institutions like DBS Bank, Deloitte & Touche, Aviva and Deutsche Bank.

OUE said the acquisition is in line with its strategic goal of maximising investment opportunities from high-yield properties and landmark assets in Singapore.

The acquisition will be funded by a combination of internal funds and debt facility.

OUE said DBS Towers is poised to benefit from organic growth through positive rental reversions.

This is because prime office rents are expected to rise over the next few years as a result of limited new supply of office space in 2013 and 2014.

OUE said there is also asset enhancement potential in DBS Towers. The property is strategically located near the Marina Bay area, which is being transformed with the addition of convention, leisure, commercial and entertainment facilities.

Source : Channel NewsAsia – 11 Aug 2010

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