If OCBC wants to keep Chulia Street properties, it should partner a property group to redevelop them

[SINGAPORE] In this column on Mar 31, I advocated that OCBC should sell its Chulia and Church Street properties so that the assets can be redeveloped to create a new prime office project in the heart of the Central Business District (CBD). Divesting these buildings will also help create shareholder value.

My suggestion that OCBC should consider selling the trio of buildings it owns at 63 and 65 Chulia Street and 18 Church Street has been rejected. At its annual general meeting (AGM) on Apr 17, chairman Andrew Lee said OCBC has no plans to sell its CBD properties including OCBC Centre, which holds heritage value for the lender.

Still, if OCBC wants to retain the said properties, I maintain that it should redevelop the trio of buildings soon in a prudent manner. The lender can work with a financially strong property group, which has strong project-execution capabilities in integrated development.