IN THE biggest office leasing deal for a new suburban project so far this year, CPG Corporation has taken a lease of 83,000 sq ft at Westgate Tower next to Jurong East MRT Station. The group will move out from Novena Square, where it occupies its present office of about 80,000 sq ft under a lease that expires in Q1 2016.
The infrastructure and building development and management services provider, formerly the Public Works Department (PWD) of Singapore, is expected to move into Westgate Tower in the fourth quarter of next year. CPG is said to have inked a 10-year lease.
Westgate Tower, a Green Mark Platinum building with Grade A office specifications, received Temporary Occupation Permit earlier this month and the owner, a joint venture between Sun Venture and Low Keng Huat, is likely to start handing space to tenants in December.
Including the CPG lease, about 60 per cent of Westgate Tower is leased.
JLL brokered the CPG leasing deal. Its head of leasing Chris Archibold said: "We are a strong believer in the Jurong story as a successful new out-of-town office hub, given its transportation links, volume of retail and presence of a large residential catchment." He also sees strong demand for the space CPG is vacating in Novena Square, given that the area has always been popular among occupiers.
Other tenants that have signed up at Westgate Tower include serviced office operator Just Office, Lockheed Martin, United Overseas Bank, MEA Technologies, Future Lab and Joss Offshore which is involved in the shipping business.
CPG will occupy the top five office floors (levels 21 to 25) in Westgate Tower, which has 20 levels of offices totalling about 305,000 sq ft net lettable area. Asking rents in the building are between S$6.50 and S$6.90 per square foot a month, depending on the square footage requirement and the level.
Offices span levels six to 25 of the 27-storey building. The office lobby is on level two. Office floor plates at Westgate Tower are about 8,700 sq ft-8,800 sq ft (on levels six to eight) and 15,855-16,700 sq ft on levels nine to 25.
The building's Grade A office specs include a good floor-to-ceiling height of 2.8 metres and raised floor system.
The office tower is part of the mixed development Westgate project developed by CapitaLand, CapitaMalls Asia and CapitaMall Trust.
In January, the trio sold the 20 levels of offices to the Sun Venture-Low Keng Huat tie-up at S$579.4 million, which works out to about S$1,900 per square foot (psf) of net saleable area. The seven-storey shopping centre in the Westgate project opened its doors in December last year.