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UBS, Asia’s biggest wealth management bank, plans to move out of the central business district and consolidate its Singapore office footprint from Suntec City and One Raffles Quay to 9 Penang Road, reported finews.com citing the Business Times.
Sources revealed that while the terms for the potential lease at 9 Penang Road have been more or less finalised, the deal is still pending approval by the bank’s top officials in Switzerland.
The bank’s decision to move to the upcoming site, near major subway intersection Dhoby Ghaut, appears to be driven by a desire to operate in a bigger, campus-style facility and not cost savings.
It was previously reported that UBS CEO Sergio Ermotti had flagged further cost cuts after a difficult first quarter.
Many office leasing observers were surprised by the move given that Penang Road is not a typical location for a major bank’s headquarter.
Penang Road, however, may have an appeal of its own, given its proximity to the prime Orchard Road shopping belt and good connectivity. Dhoby Ghaut station serves as an interchange for the North East, North-South and Circle lines.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
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