UBS is considering moving out of Singapore's central business district, according to local media reports.
UBS is likely to consolidate its Singapore office footprint by relocating from One Raffles Quay and Suntec City to 9 Penang Road, according to a «Business Times» (behind paywall) report on Monday in. Market sources said that the commercial terms of a potential lease for 9 Penang Road have been more or less finalized, but the deal is still pending for approval by the bank's top brass in Switzerland.
The site, which is coming up near key subway intersection Dhoby Ghaut, would provide a different type of space for the bank. The motivation appears to be a desire by the bank to operate in a larger, campus-style, facility, rather than cost savings.
Surprising Move
Two weeks ago, UBS CEO Sergio Ermotti flagged further cost cuts following a torrid first quarter, as finews.com reported. Switzerland's largest bank has also settled into Singapore's Command House, a historical landmark where Britain's commanding officer resided before the city-state gained independence.
Many office leasing observers were somewhat surprised that UBS, Asia's largest wealth management bank, is considering moving out of the financial district into Penang Road, which is not a typical headquarter location for a major bank.
However, Penang Road may have its own appeal, given it is a stone's throw from the prime Orchard Road shopping belt and the location offers good connectivity. Dhoby Ghaut station is an interchange for the North-South, North East and Circle lines.
