DBS IN PROPOSED ACQUISITION OF 30% STAKE IN
MARINA BAY FINANCIAL CENTRE TOWER 3
Unique opportunity to own a stake in new headquarters
SINGAPORE, 10 December 2012 - DBS Bank today announced an acquisition of 30% equity stake in Central Boulevard Development Pte. Ltd. (CBDPL), with a view to owning a stake in Marina Bay Financial Centre (MBFC) Tower 3, an award-winning 46-storey international Grade A office building with approximately 1.35 million sq ft of net lettable area. DBS recently completed its move to the new building in October 2012, occupying over 600,000 sq ft or 18 floors, and is now the anchor tenant at MBFC Tower 3.
DBS' headquarters at MBFC Tower 3 - the largest corporate fit-out in Singapore - houses the bank’s customer-facing units, an innovative flagship branch, a state-of-the art dealing room and a creative work environment for more than 4,800 DBS employees.
Said Peter Seah, DBS Chairman, “As a leading bank in Asia, we are very pleased to be able to purchase a stake in our global headquarters, DBS Asia Central at MBFC Tower 3. This transaction demonstrates our firm commitment to further entrenching DBS' leadership position in Singapore and the region. We see this as an investment in the future of DBS and are proud to be associated with a modern and prestigious address that we call home."
DBS entered into an agreement with Choicewide Group Limited, a joint venture of Cheung Kong (Holdings) Ltd and Hutchison Whampoa Limited, to purchase 30% equity stake in CBDPL and its associated loan for an aggregate consideration of S$1.035 billion. Both parties also entered into a conditional put option agreement for DBS to take up Choicewide’s remaining 3⅓% equity stake in CBDPL and its associated loan for an estimated aggregate price of S$115 million1.
Said Piyush Gupta, DBS CEO, “We set out to create a conducive and collaborative workplace of the future for our employees who have been instrumental to DBS' progress. The decision to acquire a stake in our new headquarters in MBFC Tower 3 enables us to better manage our occupancy costs in the long-term. The Marina Bay area is a location of choice for top financial institutions and businesses and the desirability and value of being housed here is only going to grow as Singapore strengthens its position as a leading Asian financial hub.”
DBS’ regional strategic occupancy model is based on a “front and hub” model. In Singapore, DBS moved most of its technology, operations and support functions to DBS Asia Hub in 2010. DBS Asia Hub is one of the largest banking operations facilities at Changi Business Park.
Last year, the bank inaugurated its new Taiwan headquarters in Shin Kong Xinyi Financial Center at the heart of Taipei’s financial district. Earlier in 2010, the bank relocated its support units to DBS Taipei Hub located in the Nei Hu Technology Park and inaugurated the DBS Bank Tower in Shanghai’s new financial district. DBS Hong Kong’s operation was relocated to One Island East in Quarry Bay and the Millennium City 6 at Kwun Tong in 2009.
The recent move to MBFC Tower 3 in its home market Singapore was a major milestone in the bank’s regional strategic occupancy plan that was unveiled in 2007.
1 The put option is only exercisable after the issue of Temporary Occupation Permit for the entire commercial and condominium housing development.
DBS - Living, Breathing Asia
DBS is a leading financial services group in Asia, with over 200 branches across 15 markets. Headquartered and listed in Singapore, DBS is a market leader in Singapore with over four million customers and also has a growing presence in the three key Asian axes of growth, namely, Greater China, Southeast Asia and South Asia. The bank's strong capital position, as well as "AA-" and "Aa1" credit ratings that are among the highest in the Asia-Pacific region, earned it Global Finance's "Safest Bank in Asia" accolade for four consecutive years, from 2009 to 2012. In 2012, DBS was named Asia’s Best Bank by The Banker, a member of the Financial Times group, and Derivatives House of the Year, Asia ex-Japan, by Asia Risk.
DBS provides the full range of services in consumer, SME and corporate banking activities across Asia and the Middle East. As a bank born and bred in Asia, DBS also understands the intricacies of doing business in the region’s most dynamic markets. This market insight and regional connectivity have helped to drive the bank’s growth as it sets out to be the Asian bank of choice. The bank believes that building lasting relationships with its customers is an integral part of banking the Asian way.
With its extensive network of operations in Asia and emphasis on engaging and empowering its staff, DBS presents exciting career opportunities. The bank acknowledges the passion, commitment and can-do spirit in all of our 18,000 staff, representing over 30 nationalities. For more information, please visit www.dbs.com