Previously, I wrote about the investment risk of Frasers Commercial Trust which is the lease expiry for Hewlett-Packard ( Frasers Commercial Trust Long Term Play in Office Rental ). The fear has turned into reality. Frasers Commercial Trust has announced that it has been informed by Hewlett-Packard Enterprise Singapore Pte Ltd (“HPE”) that they will vacate their space at Alexandra Technopark upon the expiration of relevant leases on 30 September and 30 November this year.
The rental income for the space to be vacated makes up 6.6% of FCOT’s total gross rental income for the month ended 30 June 2017. In the announcement, the manager revealed that they have already secured a new tenant for 13.4% of the space to be vacated. Read More