SingTel building new 9-storey complex with A-REIT
SingTel has entered into a S$175 million agreement with Singapore real estate developer, Ascendas Real Estate Investment Trust (A-REIT) to build a new 9-storey hi-tech building next to its existing Kim Chuan Telecommunications Complex.
According to A-REIT, the total investment for the base building and land is about S$99.6 million with an additional S$75.8 million to fit the complex out with mechanical and electrical equipment to SingTel’s specifications. The deal also involves the purchase of the land from A-REIT from SingTel for S$16 million.
The new facility, reportedly a new data centre according to Singapore media, will offer 32,862 sqm (around 350,000 sq ft) of gross floor space when completed in the first quarter of 2009.
Under the scope of the deal, SingTel will enter a 20-year lease – with annual rental escalation – for the building from A-REIT upon completion, with an option for an additional 10-year extension.
Commenting on the rationale behind the new facility, A-REIT notes: “The Proposed Development is strategically located at Tai Seng which is next to the intersections of cable networks which link Singapore to other networks worldwide. It is located next to the current Kim Chuan Communications Complex, another building owned by A-REIT currently fully occupied by SingTel.”
This article was first published in CommsDay International
Related posts:
Category: Data centres, Green ICT
Follow us...
If you enjoyed this article, connect with us to receive more just like it.
