Keppel and TPG partner to invest in green solutions firm Azura Search for office rentalsIn line with its commitment to sustainability and urban renewal, Keppel has announced that it will shift its focus to brownfield redevelopment projects after the completion of its flagship Keppel South Central commercial tower. According to Samuel Ng, president of Keppel’s real estate division in Singapore, the redevelopment of Keppel South Central is the company’s “showpiece”.
The former Keppel Towers and GE Tower, now known as Keppel South Central, will offer 650,000 sq ft of office, retail, and event space. With typical office floor plates ranging between 20,000 and 22,000 sq ft, the tower is equipped with state-of-the-art technology, such as facial recognition access and 5G Wi-Fi. Additionally, it has a suite of wellness spaces, a swimming pool, and a landscaped terrace, bringing the development in line with expectations for Grade-A office spaces.
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The tower has already secured a major anchor tenant, with negotiations ongoing for the remaining office space and retail units. Occupants are expected to begin moving in as early as June.
Keppel has also implemented green solutions in the redevelopment of Keppel South Central, which has been certified by BCA as a Green Mark Platinum Super Low Energy building. This marks a significant improvement in energy efficiency and cost savings compared to before its redevelopment. According to Keppel, the building will save approximately 6.2 million kilowatt hours (kWh) per year, translating to about $1.8 million in savings annually.
The success of Keppel South Central has prompted the company to shift its focus to other brownfield redevelopment projects in the Asia-Pacific (Apac) region as part of its Sustainable Urban Renewal (SUR) strategy. According to Ng, 87% of occupiers surveyed across Apac are looking to comprise their portfolio with entirely green-certified properties by 2030. However, with limited new office supply and a projected growth of only two sq ft of low-carbon space for every five sq ft of demand, there is a significant opportunity for sustainability-focused retrofits.
To fund such projects, Keppel announced the first close of its flagship Keppel Sustainable Urban Renewal Fund (KSURF) in April, with total funds under management of over $2.3 billion. Keppel will leverage its in-house expertise to execute the renewal works, streamlining the process and cutting costs. To date, Keppel has applied its SUR initiative to eight projects across five countries, with three projects yet to be completed.
Overall, Keppel’s focus on sustainable urban renewal will not only contribute to the company’s bottom line but also play a crucial role in creating a greener, more efficient built environment in Singapore and beyond.