HSBC Singapore to relocate to Marina Bay Financial Centre in 2020

HSBC Singapore on Thursday announced that it will be relocating its head office to Marina Bay Financial Centre (MBFC) Tower 2 from its current premises at HSBC Building to accommodate the company's rapid growth plans.

HSBC Singapore will occupy about 140,000 sq ft over the top floors of the 50-storey building. Fit-out work is expected to start in the second half of 2019, with target occupation by April 2020.

HSBC is currently the sole tenant of the HSBC Building at 21 Collyer Quay. On Wednesday, it was announced that 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 S$27.7 million.

CCT also said that 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 S$461 million as at June 30.

In a press release, HSBC Singapore CEO Tony Cripps emphasised 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 building. It will also be investing "substantially" in the new workplace to create an environment that is conducive to collaboration and encourages innovation and an entrepreneurial mindset, it said. Mr Cripps said in the release that 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". 

In March this year, HSBC Singapore announced a new 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 that was 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.