Frasers Commercial Trust (FCOT) is still in discussion with Hewlett-Packard Singapore (HPS) on the tech giant's plans for its leases at Alexandra Technopark.
HPS occupies about 304,920 sq ft at the technopark under leases expiring on Nov 30. The leases constituted about 11 per cent of FCOT's total gross rental income for the month ended Sept 30.
Last month, FCOT's manager announced that Hewlett-Packard Enterprise Singapore (HPE) intended to vacate 178,843 sq ft at the technopark when leases expired on Sept 30 and Nov 30.
The space accounted for around 17.1 per cent of the total net lettable area of the property and 6.6 per cent of FCT's portfolio gross rental income as at Sept 30.
About 61,000 sq ft of the space vacated by HPE has been committed to other tenants, FCOT said yesterday. It added that its manager will work to normalise occupancy at the technopark as soon as possible.
The property is undergoing a previously announced $45 million revamp, to be completed by around the middle of next year.
FCOT said this will transform it into a vibrant "business campus" and enhance "its long-term market position and competitiveness".
Q4 AT A GLANCE
Gross revenue: $38.3 million (-2.6%)
Net property income: $26.7 million (-8.7%)
Distribution per unit: 2.41 cents (-1.6%)
It also disclosed that it has obtained provisional permission from the Urban Redevelopment Authority to revamp the retail podium of China Square Central at Cross Street.
This will cost about $38 million, and aims to "rejuvenate and reposition the retail podium to create an exciting destination focusing on food and beverage, wellness and services".
The move will increase the net lettable area of the retail podium from 64,000 sq ft to around 75,000 sq ft. The revamp is expected to begin in the first quarter of next year and be completed around mid-2019.
The upgrading, together with the introduction of a new Capri by Fraser hotel in 2019, will complete the overall revamp of China Square Central, said FCOT.
The trust recorded a 1.6 per cent dip in distribution per unit (DPU) for the fourth quarter ended Aug 30 to 2.41 cents from the same period a year earlier, due to a bigger unit base, higher repair rates and lower occupancy rates.
Full-year DPU was steady at 9.82 cents from a year earlier.
Full-year net property income (NPI) for the overall portfolio declined 1.5 per cent to $113.8 million, mainly due to the higher repair and maintenance expenses for Caroline Chisholm Centre and lower occupancy rates at Alexandra Technopark, China Square Central and Central Park.
However, NPI for the Australian properties increased 2.5 per cent, mainly due to better performance from 357 Collins Street on the back of higher average occupancy and rental rates achieved, coupled with the stronger Australian dollar.
FCOT units yesterday rose one cent to $1.41.