HSBC S'pore to move head office to MBFC in 2020

HSBC Singapore, currently the sole tenant of HSBC Building at 21 Collyer Quay, will be moving its head office to Marina Bay Financial Centre Tower 2, where it will occupy about 140,000 sq ft on the top floors of the 50-storey building.
HSBC Singapore, currently the sole tenant of HSBC Building at 21 Collyer Quay, will be moving its head office to Marina Bay Financial Centre Tower 2, where it will occupy about 140,000 sq ft on the top floors of the 50-storey building.ST PHOTO: LIM YAOHUI

HSBC Singapore said yesterday it will be relocating its head office to Marina Bay Financial Centre (MBFC) Tower 2 from its premises at HSBC Building to accommodate its rapid growth plans.

It will occupy about 140,000 sq ft on the top floors of the 50-storey building. It expects to take up seven floors, with the option for more. Fit-out work should start in the second half of next year, with occupation targeted by April 2020.

The company is currently the sole tenant of HSBC Building at 21 Collyer Quay. On Wednesday, it said it had signed a one-year lease extension with landlord CapitaLand Commercial Trust (CCT). The total rent payable by HSBC for the extended term from April 30 next year is $27.7 million.

CCT also said it is evaluating options for the property after April 2020, which include refurbishment and reletting, redevelopment and divestment.

HSBC Building is a 21-storey office tower with a leasehold estate expiring on Dec 18, 2849, and a valuation of $461 million as at June 30.

In a press statement, HSBC Singapore chief executive officer Tony Cripps stressed the bank's commitment to growing its presence in Singapore, saying: "The decision to move to MBFC was the logical next step in our growth strategy, and will enable us to further service current and future clients."

HSBC Singapore will have signage rights to the MBFC tower. It will also be investing substantially in the new workplace to create an environment conducive to collaboration and which encourages innovation and an entrepreneurial mindset, the bank said.

Mr Cripps said HSBC in Singapore will undergo a number of "workplace and cultural changes that will transform the way our employees communicate, engage and work with each other". It has about 3,100 employees in Singapore.

In March this year, HSBC Singapore announced a three-year strategic plan with a focus on eight strategic priorities and included a 10 per cent increase in headcount over the period across all business lines.

More recently at HSBC's global strategy update in June, Singapore was one of only eight markets among the 66 countries in which HSBC operates to be classified as a "scale market" into which group investment will be channelled to support material growth.

Mr Cripps said: "As a scale market, Singapore is key to HSBC's global growth plan. Our new premises will ensure we can meet our people, technology and workplace requirements that will be needed to carry out this business expansion, and reflect our ambitions in the market."

MBFC is managed by Raffles Quay Asset Management, a joint venture between CK Asset Holdings, Hongkong Land and Keppel Land.

A version of this article appeared in the print edition of The Straits Times on September 14, 2018, with the headline 'HSBC S'pore to move head office to MBFC in 2020'. Print Edition | Subscribe