The landlord of the Hub Synergy Point near Anson Road in Tanjong Pagar district has future plans of redeveloping the entire tower by 2018. Therefore the tenants of this tower have been asked to leave soon. The office tower is said to be 44 years old situated within the financial district. It is an unfortunate situation for some tenants who have moved in recently by spending around $100,000 on renovation and now being asked to leave. It has brought unhappiness to these tenants who have to sacrifice all their newly renovated area and leave the place.
Late period of May, notifications have been sent to the tenants of this office tower. The notifications of this situation have reached around 30 or so tenants. The owner of the 28 storey office tower has indeed taken the responsibility to inform all of his tenants about the change about to happen next year. The new building is planned and suggested to be completed within the year of 2020. As soon as all the tenants leave this space, work will soon begin as planned.
To almost every tenant it was a major surprise of this sudden decision of asking them to vacate. And unfortunately this affected more towards the tenants who had spent a fortune to renovate the space and moved in recently. It is indeed a major disappointment to them. The Chairman of Prive Group stated that it was not only the renovation cost but also the cost of disruption which they had to bear altogether.
Another owner of a cafe also went on to say that, he would have not agreed to sign the lease agreement last December if he knew about the plans of renovation. Sadly bearing up all the investment cost which these men have invested in this space is not going to be worth anymore.
However, the redevelopment plans have not actually disturbed many tenants as there is a clause stated in the lease agreement mentioning that the landlord would be giving his tenants a 4 month notice about evacuating tenancy for future development plans.
An analyst stated that maximizing the plot ration of the land is indeed what has been the ultimate motivation for the redevelopment. And this would attract more tenants in future. And also with office market rents expected being under a flat surface this year, it is a great time to add some redevelopments to the space, is what Mr. Chris International owner of real estate agency went on to say. Therefore it wouldn’t be that of a bad decision. But there would be pros and cons to every situation. And the pros here probably is it would be a better business hub in future.
http://www.straitstimes.com/business/property/tenants-of-office-tower-told-to-leave-by-year-end
