SINGAPORE Post has appointed Japan's Shimizu Corporation as the main contractor to undertake the redevelopment and office works at its flagship SingPost Centre for about S$150 million.
SingPost Centre, located at 10 Eunos Road 8, sits on a total site area of 137,134 square metres, comprising retail, office and industrial space.
The postal and logistics group said the retail mall at SingPost Centre will be redeveloped into a new retail mall comprising four above ground levels including a cinema hall, and one basement level. The redevelopment when completed will have an estimated gross floor area of 25,000 square metres. The work is expected to be completed around mid-2017.
SingPost said it has secured an acceptance of a lease offer from Copitiam Pte Ltd for the operation of a food court and a letter of intent from Golden Village Multiplex Pte Ltd for the operation of a cineplex with 8 halls.
It said the redevelopment and the office works are in line with its efforts and strategy to maximise returns to shareholders by realising the full potential of its assets.
It noted that under the Urban Redevelopment Authority Masterplan 2008, the area around the Paya Lebar MRT station will be developed into a suburban commercial node, while retaining its cultural identity.
"The redevelopment will capitalise on the opportunities that this will bring. The new retail mall at SingPost Centre when completed, will introduce a new O² (O-squared) retail experience that will support the company's accelerated transformation as a global eCommerce logistics player,'' SingPost explained.
The project will be funded solely by internal funds and borrowings and is not expected to have any material impact on the net tangible assets or earnings per share of the SingPost Group for the financial year ending March 31, 2016.