(Jan 28): ANZ Group Holdings Ltd plans to bring its Singapore staff together under one roof in the second half of the year, combining employees from two offices in a new city-centre location, according to people familiar with the matter.
ANZ is making the move to the Marina One complex because its existing lease at Ocean Financial Centre is set to expire soon, according to a separate memo viewed by Bloomberg News. As such, the Australian bank aims for the new shared workspace “to better support how we work today and into the future”, it said.
ANZ joins other banks in the city-state grappling with conflicting goals of trying to reduce office costs while at the same time seeking to keep premier city-centre spaces which have long been preferred by financial and technological giants. The resulting steady demand and a lack of significant new supply have kept occupancies relatively high.
The consolidation is also a departure from the strategy of other banks which have favoured cutting city-centre space while moving back-end staff to cheaper, less central locations.
ANZ’s existing Ocean Financial Centre location spans two floors and hosts front-office employees, with back-office staff at Mapletree Business City near the country’s southern waterfront, said the people, asking not to be identified discussing private information. ANZ did not respond to emailed requests for comment.
Marina One and Ocean Financial Centre are both located in the city centre, with the former boasting two office towers held in a joint venture by Singapore and Malaysia state investors Temasek Holdings Pte Ltd and Khazanah Nasional Bhd. Both office developments have similar base rental rates, but negotiations often lead to lower offers.
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Ocean Financial Centre is majority-owned by Keppel REIT, while Mapletree Business City is owned by another Singapore-listed real estate investment trust, Mapletree Pan Asia Commercial Trust. Spokespeople for both REITs declined to comment.
ANZ joins Bank of New York Mellon Corp which is moving to Marina One from its current location in Millenia Tower. Mitsubishi UFJ Financial Group Inc and Macquarie Group Ltd are among the other banks with offices already at the development.
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