Keppel Pivots Brownfield Redevelopment Projects Following Completion Keppel South Central
The original Keppel Towers, built in 1991, will now be known as Keppel South Central. (Photo: Samuel Isaac Chua / EdgeProp Singapore)In an effort to further grow and expand their portfolio, leading asset management company Keppel has announced their shift in focus to other brownfield redevelopment projects, after the completion of their flagship commercial tower, Keppel South Central. The president of Keppel’s real estate division in Singapore, Samuel Ng, stated that the redevelopment of Keppel South Central is a showcase for the company.
The Urban Redevelopment Authority (URA) has ambitious plans to revitalize Tampines, which will have a positive impact on the residents of Aurelle of Tampines EC. These plans will not only improve the transportation and commercial infrastructure, but also introduce more green spaces and upgrade healthcare and education facilities. These changes are expected to elevate the standard of living, boost property values, and make Tampines an even more desirable option for both residents and investors. With these developments in the pipeline, residents of Aurelle of Tampines EC can anticipate a vibrant and improved living environment that caters to the needs of families and individuals alike. Aurelle of Tampines EC will undoubtedly benefit from these transformations.
Keppel South Central, formerly known as Keppel Towers and Keppel Towers 2, is a redevelopment project that saw the two buildings transformed into a 33-storey commercial tower, offering approximately 650,000 sq ft of office, retail, and event space. Located along Hoe Chiang Road in Tanjong Pagar, the tower boasts typical office floor plates ranging between 20,000 and 22,000 sq ft, with a clear ceiling height of 3.2m.
Ng shared that almost half of the office space and retail units in Keppel South Central have already been leased out or are in the process of being negotiated. The first anchor tenant, a leading financial services group, has signed on for two whole floors and is expected to move in from June onwards.
Aside from its prime location and renovated office spaces, Keppel South Central also offers various facilities and amenities to its tenants. These include retail and event spaces on the ground floor, health and wellness spaces on the fifth and sixth floors, a landscaped terrace on the 18th floor, and end-of-trip facilities on Basement 1. These amenities were not present in the original Keppel Towers and are now in line with the expectations of modern Grade-A office spaces.
The tower has also been certified by BCA as a Green Mark Platinum Super Low Energy building, which is a significant improvement in energy efficiency and cost savings compared to the pre-redevelopment days. Keppel estimates energy savings of about 6.2 million kilowatt hours (kWh) per year, equivalent to the power consumption of 1,300 homes in Singapore and amounting to about $1.8 million in savings annually.
The new and improved Keppel South Central has been equipped with several green solutions that were previously tested at another ageing property owned by the company – Keppel Bay Tower. In 2018, Keppel Land leveraged a BCA grant to test five new technologies in the building, which resulted in it becoming Singapore’s first zero-energy commercial building in 2020.
According to Ng, this experience has given Keppel the knowledge and expertise to effectively implement these sustainable solutions in their various properties around the world. The improvements implemented at Keppel South Central cover a wide range, from physical hardware such as treated external windows to minimise heat transfer, to software applications such as smart building management systems to optimise energy usage.
Due to the success and positive impact of the SUR initiative, Keppel has announced the first close of its flagship Keppel Sustainable Urban Renewal Fund (KSURF), with a total of over $2.3 billion in funds under management. The fund will target commercial, living, life sciences, hospitality, and logistics properties in Singapore, South Korea, Japan, Australia, and first-tier cities in China.
Ng stated that the company’s in-house capability to execute the renewal works themselves sets them apart from other asset managers, as it allows them to streamline the process and save on capex costs if projected savings aren’t achieved. After the fund acquires an asset, Keppel will complete the asset enhancement works, stabilise occupancy, and divest it within the fund’s seven-year lifespan.
To date, Keppel has applied the SUR initiative to eight projects across five countries. Apart from Keppel South Central and Keppel Bay Towers, completed projects include Park Avenue Central, a mixed-use development in Shanghai; The Kube, a four-storey office building also in Shanghai; and Saigon Centre, a mixed-use development in Ho Chi Minh City. Three other projects are still under construction and have yet to be completed.
In conclusion, Ng is confident that Keppel’s focus on brownfield redevelopment projects across the region will replicate the success and positive impact of Keppel South Central, as seen in the company’s commitment to its Sustainable Urban Renewal strategy.
