OUE Bayfront to spend up to $43 mil to unlock 22,604 sq ft for prime office space

OUE Bayfront, along Collyer Quay, is located between the Marina Bay downtown and the Raffles Place financial hub.

Mixed-use development OUE Bayfront in Singapore’s CBD has received planning approval to convert its level 17 chiller system area — spanning an estimated gross floor area of over 2,100 sq m (22,604 sq ft) — into prime office space.

The conversion is expected to be completed by the first half of 2027 and generate additional rental income, OUE Reit’s manager said in a March 24 press release.

With an estimated capital expenditure of up to about $43 million, the space conversion is expected to deliver a stabilised return on investment exceeding 11%. The Reit manager plans to draw down on existing loan facilities to fund it fully.

Located between the Marina Bay downtown and the Raffles Place financial hub, OUE Bayfront on Collyer Quay comprises an 18-storey office building as well as OUE Tower, which houses a waterfront revolving restaurant, and OUE Link, an air-conditioned overhead pedestrian bridge with retail shops.

The decommissioning of the existing chiller system in the building is made possible by OUE Bayfront’s connection to the district cooling system.

Once in operation, the district cooling system will also enable the development to significantly reduce its energy consumption, improve cooling efficiency and lower greenhouse gas emissions. OUE Bayfront had commenced works to connect to the system in 2025.

Han Khim Siew, CEO and executive director of the OUE Reit manager, said that sustainability is a moral, strategic and structural imperative that is integral to delivering long-term value creation.

“Moving forward, we will continue to identify and implement sustainability-led asset enhancement initiatives that future-proof our portfolio and deliver enduring returns for our stakeholders,” he added.

Besides OUE Bayfront, OUE Reit’s portfolio of six office, hospitality and retail assets in Singapore also includes One Raffles Place, OUE Downtown Office and Mandarin Gallery.

The conversion is not expected to have a material effect on the net tangible assets or aggregate leverage of OUE Reit and its subsidiaries for the financial year ending Dec 31, 2026.

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