Monthly Archives: July 2009

Citi opens new global hub

Posted on 22 Jul 2009 | Comments Off on Citi opens new global hub

CITIGROUP took the wraps off a new $100 million global operations and technology (O&T) hub here yesterday.

The 200,000 sq ft purpose-built facility at the Changi Business Park marks the completion of the first phase of a $220 million plan to centralise Citi’s global O&T units in Singapore.

Acting Minister for Information, Communications and the Arts Lui Tuck Yew, who officially opened the site, -said it allowed Citi to consolidate operations under one roof, resulting in greater synergy and propelling long-term business growth. ‘It is heartening to note that in the midst of the current economic situation, global companies like Citi remain committed to Singapore,’ he said.

The site – which also houses Citi’s 22nd and newest retail banking branch – is now home to 2,000 of its 8,000 staff in Singapore. Most are moving over from older O&T sites in nearby Tampines.

Industry watchers believe Citi’s latest investment in Singapore reaffirms the Republic’s position as a magnet for international financial institutions.

Citi Singapore country head Jonathan Larsen said the building represents a strategic investment in Singapore for Citi.

‘It reinforces Singapore’s role as Citi’s strategic hub for regional management, marketing, operations and technology globally,’ he said.

Mr Larsen’s comments comes a week after Citi surprised Wall Street with second-quarter profits of US$4.3 billion (S$6.25 billion). The bank – named Singapore’s best bank in the Euromoney Awards for Excellence 2009 last week – has been steadily increasing its presence in Singapore, especially in the retail banking space, since 2005.

Mr Larsen disclosed that the bank is working with local transport operator SMRT to expand its local network, especially into the heartland.

‘We plan to set up branches in the north of Singapore, in areas such as Yishun, Sembawang and Sengkang,’ he said.

The Changi hub acts as the new site for Citi’s major processing centres, including its regional service centre for securities and funds administration plus its regional cash processing management unit. It is also the bank’s global processing centre for its wealth management business and transaction services operations, and provides technology infrastructure support and data centre services for Citi’s worldwide operations.

The Changi hub acts as the new site for Citi’s major processing centres, including its regional service centre for securities and funds administration plus its regional cash processing management unit.

Source : Straits Times – 21 Jul 2009

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Posted in General, Property Market / Real Estate

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ION Orchard to open its doors to public on Tuesday

Posted on 20 Jul 2009 | Comments Off on ION Orchard to open its doors to public on Tuesday

ION Orchard will open its doors on Tuesday in its soft launch, with over 70 per cent of the shops ready for business.

It is the second major mall to open along the prime Orchard Road shopping strip in a decade, with 96% of its space leased.

After two and a half years, and more than S$2 billion in investment and construction costs, the eight-storey mall with a retail mix of established brands, flagship stores and new-to-market shops is ready for business.

In order to incentivise the tenants to open by Tuesday, the developers gave them a 30 per cent rental rebate until end-October. And for those who could not open by Tuesday, they received a smaller tiered rebate.

But can the new mall put the sparkle back into Singapore’s lacklustre retail scene?

Latest figures showed that May retail sales rose marginally by 0.8 per cent compared to April, after two consecutive month-on-month declines. The mall’s developer, Orchard Turn Developments, is bullish about prospects.

Soon Su Lin, chief executive, Orchard Turn Developments, said: “The property market is cyclical. We believe this is a long term investment for us and the tenants have full confidence that the market will turn around. We have an unmatched location on top of the MRT station, stunning architectural design and the tenant mix is very interesting.”

Another thing it is banking on is the 200,000 daily footfall along Orchard Road. But with more than 20 per cent of Singapore’s retail space concentrated along this prime shopping belt, competition will be tough.

When asked if it will offer more help to tenants, the developer said it will keep a close eye on the bottomline.

Soon said: “We believe in the relationship as a partnership and we will monitor their sales and we’ll work with them. Under our contract, our rental structure is such that we are paid a base rental or a percentage of turnover, whichever is higher.”

ION will officially open in October, when it aims to have more than 90 per cent of shops open.

Meanwhile, Orchard Residences, which is part of the development, is 84 per cent sold and should be ready by the middle of 2010.

Source : Channel News Asia – 20 Jul 2009

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Posted in General, Luxury Property, Office / Retail / Industrial

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