CapitaLand chalks up over 80% occupancy for Geneo cluster at Science Park; rents meet expectations

[SINGAPORE] CapitaLand’s S$1.4 billion Geneo business park and life sciences development at Singapore Science Park (SSP) is over 80 per cent occupied, with rents achieved in line with expectations, the park’s developer said.

Jonathan Yap, CEO of CapitaLand Development (CLD), told The Business Times that leasing demand has been “good so far, with a mix of large and small tenants from the life sciences and technology sectors”.

Geneo is owned by CLD, the master developer and park operator of SSP, and CapitaLand Ascendas Real Estate Investment Trust (Clar). Plans for the project were unveiled in 2023; the cluster officially opened on Friday (May 22).

The cluster integrates three large properties – 1, 5 and 7 Science Park Drive – with a total gross floor area of about 180,600 square metres (sq m). About 80,000 sq m of space is in purpose-built infrastructure for biomedical R&D, flexible laboratories and Grade A business park workspaces.

Tenants include the Agency for Science, Technology and Research (A*Star), biopharmaceutical research institute Chugai Pharmabody Research and laboratory operator NSG Bio.

Swiss chocolate maker Barry Callebaut and German consumer goods and industrial company Henkel have also moved in.

Without disclosing rental rates, Yap said that the rents achieved are in line with CLD’s expectations.

Geneo is part of broader plans to rejuvenate SSP, where CLD is also building a new 343-unit condominium, Lyndenwoods, on a site rezoned from business park to residential use.

CLD previously said that the whole area would be about 75 per cent business park, around 20 per cent residential and the rest commercial retail.

SEE ALSO

CapitaLand Ascendas Reit looks to redevelop older business park and data centre assets, as H2 DPU falls 2% to S$0.07528 

Lyndenwoods sold 94 per cent of its 343 units at launch in July 2025 at an average price of S$2,450 per square foot (psf). Based on caveats lodged as at Thursday, the development has since sold all but one unit at a median price of S$2,465 psf.

SSP also houses a 250-room serviced apartment property operated by CapitaLand’s Citadines brand at 7 Science Park Drive, and more residential projects are in the pipeline.

Business park market

The business park market remains healthy, Yap said, though he noted that the sector has become bifurcated.

“Singapore’s business parks have been around for more than 40 years. Inevitably, the market’s progress is not homogeneous. That’s why we’re seeing a lot of redevelopment alongside new construction,” he said.

“Buildings that have been redeveloped are very well occupied, while some older buildings are in need of rejuvenation.”

CapitaLand has been advertising incentives of up to 50 per cent rental support across 10 business park and science park properties islandwide, including 31 International Business Park.

In the advertisement, the group said the scheme was aimed at helping businesses grow with “greater flexibility”, whether they were expanding their headquarters, R&D operations or backend functions.

Based on Clar’s FY2025 annual report, 31 International Business Park recorded gross revenue of S$8.8 million and an occupancy rate of 36.8 per cent as at end-December.

Asked about the incentives, Yap said: “Some buildings are in need of attention, and those are the ones where we need to give tenants a reason to be there. Like any other business, there are situations where you need to offer incentives to attract tenants.”

Islandwide, business park occupancy levels eased by 0.4 percentage point quarter on quarter to 76.7 per cent in Q1 2026, JTC Corporation data showed.

This was led by gains in the multiple-user and single-user factory segments and “pockets of softness” in an otherwise stable market.

Still, Yap said that Singapore’s business park sector remains relevant given the country’s well-governed environment, relatively well-educated workforce and ability to attract businesses, despite macro uncertainties.

On rejuvenation plans for other business park assets, he said that CapitaLand would consider redevelopment when upgrading works were no longer sufficient to meet current expectations.

He added that the group remains open to selling assets, whether to one of its large private funds or to the open market, as part of its active portfolio management strategy.

Buyer demand for business park assets has been picking up, he observed, with interest from local investors and foreign funds.

In 2025, Clar acquired 5 Science Park Drive for S$245 million. Most recently, it bought a 50 per cent stake in premium business space property Ascent at 2 Science Park Drive for S$245 million alongside a global sovereign wealth fund.

Yap added that Singapore continues to attract investors seeking steady income streams from well-occupied assets, and value-add opportunities such as through minor renovation and development works.