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By Spirit
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Discussion Starter #1
KepLand may decide to redevelop Ocean Building

7 Dec 05

Ernst & Young's departure will facilitate process: industry observers

ERNST & Young's decision to move out of Ocean Building when its lease in the ageing property expires late next year may not be such a bad thing after all for Keppel Land, which is Ocean Building's majority owner.



Sources have told BT that KepLand is mulling redeveloping Ocean Building and the accounting giant's exit will facilitate that. BT understands that leases signed or renewed in the building over the past two years have included a clause allowing KepLand to require tenants to vacate at six months' notice, and this was done with a view to redevelopment.

Besides E&Y, which occupies about 80,000 sq ft, Ocean Building's other major tenants include Bank of Nova Scotia, Lim & Tan Securities, Air New Zealand and Cathay Pacific.

Industry observers suggest KepLand may also consider tying in a redevelopment of Ocean Building, which was completed 31 years ago, with earlier plans to add an extension to the newer Ocean Towers, which is adjacent to Ocean Building. 'Or they may just transfer any unutilised plot ratio for Ocean Towers to a new redevelopment scheme for Ocean Building next door,' suggested a property consultant. Both properties were built on a 999-year leasehold site with a combined land area of 65,757 sq ft.

The 27-storey Ocean Towers was completed in 1992 while the 29-storey Ocean Building, in 1974.

The site is designated for commercial use with a total plot ratio (ratio of potential maximum gross floor area to land size) of 15.12. This factors in bonus plot ratios for the size of the land and its proximity to Raffles Place MRT Station.

Based on the existing gross floor area of the two buildings, there should be scope to add at least 100,000 sq ft GFA, according to back-of-the-envelope calculations from information in KepLand's latest annual report.

However, an even bigger motivation for redeveloping Ocean Building is simply its age. A spanking new office project will have greater efficiency and be able to fetch higher rents. And with the recovery in the Singapore office market, it makes sense for KepLand to redevelop Ocean Building as soon as possible.

Property consultants say that KepLand will likely redevelop Ocean Building into a new office block to take advantage of its prime office address, and not opt for a residential redevelopment scheme. This will be unlike what some ageing office block owners in less choice parts of the Central Business District like McCallum Street are planning.

KepLand could inject the redeveloped Ocean Building property into its proposed office real estate investment trust, K-Reit Asia, suggest analysts.

'In fact, KepLand might just want to fast track the redevelopment of Ocean Building to make sure it's completed before the first building in the Business and Financial Centre (BFC) is ready around 2010,' said a market watcher.

BFC is being built in Singapore's New Downtown that is shaping up around Marina Bay. KepLand has a one-third stake in the consortium developing BFC.

KepLand has a 76 per cent stake in Ocean Building and Ocean Towers. The rest is held by Hongkong and Shanghai Banking Corp and Avan Investments, controlled by Malacca's wealthy Ong family.

By KALPANA RASHIWALA
 

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Tallest on his iceberg
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3,591 Posts
RafflesCity said:
'In fact, KepLand might just want to fast track the redevelopment of Ocean Building to make sure it's completed before the first building in the Business and Financial Centre (BFC) is ready around 2010,' said a market watcher.
That's like 4 years to design, demolish and rebuild... Certainly feasible... :) Could it be possibly taller than ORQ ?
 

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By Spirit
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25,912 Posts
Discussion Starter #3
hard to say...if its too tall it might spoil the skyline...

I dont quite mind the Ocean Building...maybe cos I'm used to it.
 

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Tallest on his iceberg
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Huh. Not really, but yeah the shape is sort of similar :) And both are some kind of 'upgraded International Style' ;-)
 

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By Spirit
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Discussion Starter #7
Redevelopment of Ocean Building to take place soon

8 Mar 07

About half of tenants have moved out; rest will do so soon

PLANS are finally under way to tear down the ageing Ocean Building in Collyer Quay, more than a year after owner Keppel Land (KepLand) was first said to be considering a redevelopment.
Sources said that KepLand intends to construct a brand-new office building on the site to help meet soaring demand for prime office space here.

A KepLand spokesman stopped short of confirming this, telling The Straits Times yesterday that the developer expects to clear the Ocean Building site by early next year to make way for an as-yet-unspecified new building.

It said the plans are still at a preliminary stage with details being worked out.

About 40 per cent of the building's tenants have already moved out, with the rest expected to follow by the middle of the year.

They had been informed of the redevelopment plans in the second half of last year, KepLand said yesterday. Many are relocating to other nearby KepLand buildings, with the developer's assistance.

Major tenants Ernst & Young and the Bank of Nova Scotia have moved across the road to One Raffles Quay, newly developed by KepLand in conjunction with Hongkong Land and Cheung Kong Holdings.

Others such as Lim & Tan Securities will move to Equity Plaza by June, while HSBC is closing its safe deposit box operations in basement one of the building altogether.

These four key tenants together occupy about 170,000 sq ft of Ocean Building's total 401,931 sq ft of net floor area.

The current 29-storey building is KepLand's flagship office block. It was completed in 1974 after a few redevelopments previously.

KepLand has also recently received written approval for its plans to revamp Ocean Towers, just next door to Ocean Building.

It intends to improve on the existing basements and build a new office block as an extension to Ocean Towers, according to the latest Urban Redevelopment Authority data.

After these changes, Ocean Towers is expected to have 626,000 sq ft of gross floor area dedicated to office space and 1,800 sq ft of gross floor area for shops.

Both Ocean Building and Ocean Towers sit on 999-year leasehold sites, although the current Ocean Towers is newer, having been completed in 1992.

Consultants believe that Keppel could inject the two buildings into its office trust after the redevelopments are completed.

In fact, they were already widely expected to be included in the initial portfolio of K-Reit when it was launched in April.

Experts said the redevelopment of Ocean Building is 'timely', given the acute shortage of prime office space, which has sent rents shooting to new highs.


By Fiona Chan
 

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By Spirit
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Discussion Starter #9
no idea if there is a height limit...I am guessing it will be about the same height as the entire row fronting Collyer Quay

pic of Ocean Building
 

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By Spirit
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Discussion Starter #14
The building is being prepared for demolition. Saw the preparation works being carried out this morning.
 

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Baby
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Any source for the rendering ?

A number of building in demolition / rebuild in the Robinson Road but not reported in news. I saw following being fence up.

- Robinson Post Office building at Robinson Road
- Corporate Office at Robinson Road
- OUB Building at Robinson Road ( opposite Lau Pa Sat )

Any idea what they will look like ? Any rendering ?
 

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By Spirit
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Discussion Starter #16
so far I've not seen any rendering for the new office buildings....Straits Trading is also getting rebuilt...

but I quite like the Ocean Building...too bad its going down
 

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hope they come out with something our of the norm..if nt no pt demolishing classic yet attractive buildings..
 

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Baby
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So many commercial buildings are being redeveloped will cause even more supply crunch in CBD. Expect rental to accelerate even furthur over next 2 years.

The MBFC phase 1 is pretty slow... still doing foundation after 8 months. I just wonder if the developers are taking their own sweet time ?
 
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